Flsenate Archive: Session

HB 0743

2004

A bill to be entitled

An act relating to consumer credit reports; providing

definitions; authorizing consumers to place security

alerts on credit reports; providing requirements and

procedures; providing duties of consumer credit reporting

agencies; authorizing consumers to place security freezes

on credit reports; providing criteria, requirements, and

procedures; providing duties of consumer credit reporting

agencies; providing exceptions; authorizing consumer

credit reporting agencies to charge a reasonable fee;

providing an effective date.

Be It Enacted by the Legislature of the State of Florida:

Section 1. (1) DEFINITIONS.--For purposes of this

section, the term:

(a) "Consumer credit reporting agency" means a credit

reporting agency regulated under 15 U.S.C. ss. 1681 et seq.

(b) "Security alert" means a notice placed in a consumer's

credit report, at the request of the consumer, that notifies a

recipient of the credit report that the consumer's identity may

have been used without the consumer's consent to fraudulently

obtain goods or services in the consumer's name.

consumer's credit report, at the request of the consumer and

subject to certain exceptions, that prohibits the consumer

credit reporting agency from releasing the consumer's credit

report or any information from it without the express

authorization of the consumer.

(2) SECURITY ALERT PLACEMENT BY CONSUMER; ACCEPTANCE OF

SECURITY ALERT BY CONSUMER CREDIT REPORTING AGENCY; TIME IN

EFFECT.--

(a) A consumer may elect to place a security alert in his

or her credit report by making a request in writing or by

telephone to a consumer credit reporting agency.

(b) A consumer credit reporting agency shall notify each

person requesting consumer credit information with respect to a

consumer of the existence of a security alert in the credit

report of that consumer, regardless of whether a full credit

report, credit score, or summary report is requested.

shall maintain a toll-free telephone number to accept security

alert requests from consumers 24 hours a day, 7 days a week.

(d) A consumer credit reporting agency shall place a

security alert on a consumer's credit report no later than 5

business days after receiving a request from the consumer.

(e) The security alert shall remain in place for at least

90 days, and a consumer shall have the right to request a

renewal of the security alert.

(3) SECURITY FREEZE BY CONSUMER CREDIT REPORTING AGENCY;

TIME IN EFFECT; REASONABLE FEE; AGENCY DUTIES.--

(a)1. A consumer may elect to place a security freeze on

his or her credit report by making a request in writing by

certified mail to a consumer credit reporting agency. If a

security freeze is in place, information from a consumer's

credit report may not be released to a third party without prior

express authorization from the consumer. This subparagraph does

not prevent a consumer credit reporting agency from advising a

third party that a security freeze is in effect with respect to

the consumer's credit report.

2. A consumer credit reporting agency shall place a

security freeze on a consumer's credit report no later than 5

business days after receiving a written request from the

consumer.

3. The consumer credit reporting agency shall send a

written confirmation of the security freeze to the consumer

within 10 business days and shall provide the consumer with a

unique personal identification number or password to be used by

the consumer when providing authorization for the release of his

or her credit report for a specific party or period of time.

4. If the consumer wishes to allow his or her credit

report to be accessed for a specific party or period of time

while a freeze is in place, the consumer shall contact the

consumer credit reporting agency, request that the freeze be

temporarily lifted, and provide the following:

a. Proper identification sufficient to identify the

consumer.

b. The unique personal identification number or password

provided by the consumer credit reporting agency pursuant to

subparagraph 3.

c. Proper identification regarding the third party who is

to receive the credit report or the time period for which the

report shall be available to users of the credit report.

5. A consumer credit reporting agency that receives a

request from a consumer to temporarily lift a freeze on a credit

report pursuant to subparagraph 4. shall comply with the request

no later than 3 business days after receiving the request.

6. A consumer credit reporting agency may develop

procedures involving the use of telephone, fax, the Internet, or

other electronic media to receive and process a request from a

consumer to temporarily lift a freeze on a credit report

pursuant to subparagraph 4. in an expedited manner.

7. A consumer credit reporting agency shall remove or

temporarily lift a freeze placed on a consumer's credit report

only:

a. Upon a consumer’s request, pursuant to subparagraph 4.

or subparagraph 10.; or

b. If the consumer's credit report was frozen due to a

material misrepresentation of fact by the consumer.

100

101

If a consumer credit reporting agency intends to remove a freeze

102

upon a consumer's credit report pursuant to this subparagraph,

103

the consumer credit reporting agency shall notify the consumer

104

in writing prior to removing the freeze on the consumer's credit

105

report.

106

8. If a third party requests access to a consumer credit

107

report on which a security freeze is in effect, and this request

108

is in connection with an application for credit or any other

109

use, and the consumer does not allow his or her credit report to

110

be accessed for that specific party or period of time, the third

111

party may treat the application as incomplete.

112

9. If a consumer requests a security freeze, the consumer

113

credit reporting agency shall disclose the process of placing

114

and temporarily lifting a freeze and the process for allowing

115

access to information from the consumer's credit report for a

116

specific party or period of time while the freeze is in place.

117

10. A security freeze shall remain in place until the

118

consumer requests that the security freeze be removed. A

119

consumer credit reporting agency shall remove a security freeze

120

within 3 business days after receiving a request for removal

121

from the consumer, who provides:

122

a. Proper identification sufficient to identify the

123

consumer.

124

b. The unique personal identification number or password

125

provided by the consumer credit reporting agency pursuant to

126

subparagraph 3.

127

11. A consumer credit reporting agency shall require

128

proper identification sufficient to identify a person who makes

129

a request to place or remove a security freeze.

130

12. The provisions of this paragraph do not apply to the

131

use of a consumer credit report by:

132

a. A person or entity, or a subsidiary, affiliate, or

133

agent of that person or entity, or an assignee of a financial

134

obligation owing by the consumer to that person or entity, or a

135

prospective assignee of a financial obligation owing by the

136

consumer to that person or entity in conjunction with the

137

proposed purchase of the financial obligation, with which the

138

consumer has or had prior to assignment an account or contract,

139

including a demand deposit account, or to whom the consumer

140

issued a negotiable instrument, for the purposes of reviewing

141

the account or collecting the financial obligation owing for the

142

account, contract, or negotiable instrument. For purposes of

143

this sub-subparagraph, the term "reviewing the account" includes

144

activities related to account maintenance, monitoring, credit

145

line increases, and account upgrades and enhancements.

146

b. A subsidiary, affiliate, agent, assignee, or

147

prospective assignee of a person to whom access has been granted

148

under subparagraph 4. for purposes of facilitating the extension

149

of credit or other permissible use.

150

c. Any state or local agency, law enforcement agency,

151

trial court, or private collection agency acting pursuant to a

152

court order, warrant, or subpoena.

153

d. A child support agency acting pursuant to chapter 61,

154

Florida Statutes, or Title IV-D of the Social Security Act, 42

155

U.S.C. ss 651 et seq.

156

e. The Department of Health or the Department of Children

157

and Family Services or its agents or assigns acting to

158

investigate fraud.

159

f. The Department of Revenue or its agents or assigns

160

acting to investigate or collect delinquent taxes or unpaid

161

court orders or to fulfill any of its other statutory

162

responsibilities.

163

g. The use of credit information for the purposes of

164

prescreening as provided for by the federal Fair Credit

165

Reporting Act.

166

h. Any person or entity administering a credit file

167

monitoring subscription service to which the consumer has

168

subscribed.

169

i. Any person or entity for the purpose of providing a

170

consumer with a copy of the consumer’s credit report upon the

171

consumer's request.

172

13. This paragraph does not prevent a consumer credit

173

reporting agency from charging a reasonable fee to a consumer

174

who elects to freeze, remove the freeze, or temporarily lift the

175

freeze regarding access to a consumer credit report, except that

176

a consumer credit reporting agency may not charge a fee to a

177

victim of identity theft who has submitted a valid police report

178

or valid Department of Highway Safety and Motor Vehicles

179

investigative report that alleges a violation of this paragraph.

180

(b)1. If a security freeze is in place, a consumer credit

181

reporting agency shall not change the consumer’s name, date of

182

birth, social security number, or address in a consumer credit

183

report without sending a written confirmation of the change to

184

the consumer within 30 days after the change is posted to the

185

consumer's file. Written confirmation is not required for

186

technical modifications of a consumer's official information,

187

including, but not limited to, name and street abbreviations,

188

complete spellings, or transposition of numbers or letters. In

189

the case of an address change, the written confirmation shall be

190

sent to the consumer’s new address and the consumer’s former

191

address.

192

2. If a consumer has placed a security alert on his or her

193

credit report, a consumer credit reporting agency shall provide

194

the consumer, upon request, with a free copy of his or her

195

credit report at the time the 90-day security alert period

196

expires.

197

Section 2. This act shall take effect upon becoming a law.