Consumer Report Security Freeze Legislation
2003 Legislation
March 8, 2005
Enactments noted in italics
| State: |
Bill Summary: |
| California |
S.B. 25
Chaptered by secretary of state 10/12/03, Chapter 907
Provides that any person who uses a consumer credit report in connection with the approval of credit, as specified, may not lend money, extend credit, or complete the purchase, lease, or rental of goods or noncredit related services without taking reasonable steps to verify the consumer’s identity, in order to ensure that the application for an extension of credit or for the purchase, lease, or rental of goods or noncredit related services is not the result of identity theft. Specifies that a consumer has placed a statement with the security alert in his or her file requesting that identity be verified by calling a specified telephone number, any person who receives that statement with the security alert in a consumer's file must take reasonable steps to verify his or her identity by contacting the consumer using the specified telephone number prior to lending money, extending credit, or completing the purchase, lease, or rental of goods or noncredit related services, with certain exceptions. Revises the disclosures that a consumer credit reporting agency is required to give a consumer. Requires demand deposit account information services companies to comply with security alert or security freezes in a credit report. Prohibits state and local agencies, subject to specified exceptions, from publicly posting or displaying an individual’s social security number or doing certain other acts that might compromise the security of an individual’s social security number. Prohibits a person or entity from encoding embedding a social security number in or on a card or document, including using a bar code, chip, magnetic strip, or other technology, in place of removing the social security number. |
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S.B. 602
Chaptered by secretary of state 9/25/03, Chapter 533
Provides for a penalty in an amount up to $2,500 and reasonable attorneys' fees for a failure of a consumer credit reporting agency to place a security alert, as specified. Requires a consumer credit reporting agency to provide additional notice to the consumer regarding the expiration date of that security alert, as specified. Limits the fee for freezing a consumer credit report to $10 for each freeze, removal of a freeze, or temporary lift of a freeze. Prohibits the retention of information encoded on a driver’s license unless the business is required by law to record and retain the information. Requires a business entity that provides credit, installment, or telephone accounts, as defined, that receives a change of address request from any individual who has an existing account with that entity, to send specified change of address notices. Clarifies a provision in the procedure to initiate an investigation of possible identity theft. Permits a cause of action, penalties and reasonable attorney fees for the failure of a person or entity to provide specified reports when requested by a victim of identity theft. Authorizes telephone companies to release certain information needed to pursue an identity theft investigation. |
| Connecticut |
H.B. 6645
Failed Joint Favorable deadline 3/25/03
Allows consumers to place security alerts and security freezes on their credit reports. |
| Louisiana |
H.B. 973
Signed by governor 7/1/03, Act 934
Provides that victims of identity theft may file police reports about the identity theft with the Louisiana Department of Justice, office of the attorney general, or in the municipality or parish in which the victim is domiciled, despite the fact that jurisdiction for investigation and prosecution of the crime may lie elsewhere. Requires the municipal police department or sheriff’s office to receive and file the report. Requires each creditor who grants credit as a result of information which was obtained through an identity theft shall make available to the victim of the identity theft any and all information in the possession of the creditor which the victim needs to reverse the effects of the identity theft. Provides that no creditor may be held liable for an action taken in good faith to provide information regarding potential or actual violations to other financial information repositories, financial service providers, merchants, law enforcement authorities, victims, or any person alleging to be a victim who complies with new law, or to assist a victim in recovery of fines, restitution, and rehabilitation of the victim’s credit, or such other relief as may be appropriate. Provides for security alerts to be placed with credit reports. Relative to credit reporting agencies, defines "security alert" to mean a notice placed on a consumer file, at the request of the consumer, that is sent to a recipient of a consumer report involving that consumer file, signifying the fact 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. Requires, after request by the consumer in writing or by telephone, a consumer reporting agency to place a security alert on the consumer’s file not later than five business days after the date the agency receives the request. The security alert must remain in effect for not less than 90 days after the date the agency places the security alert on file. Provides that a consumer reporting agency shall send an alert to each person who requests a consumer report if a security alert is in effect for the consumer file involved regardless of whether a full credit report, or summary report is requested. Requires that a consumer reporting agency that compiles and maintains files on a nationwide basis shall maintain a toll-free telephone number that will accept security alert requests from consumers. Provides for certain exclusions from the requirement of placing a security alert on a consumer report as provided for in new law. Provides that, effective January 1, 2004, each creditor, potential creditor, credit reporting agency, or other entity which violates the provisions is liable to the victim of an identity theft for all of the documented out-of-pocket expenses caused by such creditor, agency, or other entity and suffered by the victim as a result of the identity theft, plus reasonable attorney fees. |
| Nevada |
S.B. 379
Relates to personal identifying information; prohibits the public display of certain personal identifying information under certain circumstances and provides certain remedies; provides that a consumer may place a security alert or security freeze in certain files maintained by a reporting agency; provides for certain requirements and procedures relating to a security alert or security freeze; requires a reporting agency to maintain a toll-free phone number for certain purposes; requires a reporting agency to make certain disclosures in certain circumstances. |
| New York |
A.B. 7419
Provides consumers may elect to place security freezes on consumer reports by making such request to consumer reporting agencies; defines "security freeze" as notice placed on a consumer report, at the request of the consumer and subject to certain exceptions, that prohibits the consumer reporting agency from releasing such consumer’s credit report or consumer report without the express authorization of such consumer. |
| Texas |
S.B. 473
Signed by governor 6/22/03
Relates to assisting consumers to prevent and detect identity theft; provides penalties. |
NCSL Staff Contact: Heather Morton, (303) 364-7700, Denver
 Financial Privacy Page
Identity Theft Page
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