§ 6-48-5 - Security freeze – Timing, covered entities, cost.
SECTION 6-48-5
§ 6-48-5 Security freeze – Timing,covered entities, cost. – (a) A consumer may elect to place a "security freeze" on his or her creditreport by making a request by certified mail to a consumer reporting agency atan address designated by the consumer reporting agency to receive such requests.
(b) A consumer reporting agency shall place a security freezeon a consumer's credit report no later than five (5) business days afterreceiving from the consumer:
(1) A written request as described in subsection (a);
(2) Proper identification; and
(3) Payment of a fee, if applicable.
(c) The consumer reporting agency shall send a writtenconfirmation of the security freeze to the consumer within ten (10) businessdays of placing the freeze and at the same time shall provide the consumer witha unique personal identification number, password or similar device to be usedby the consumer when providing authorization for the release of his or hercredit for a specific period of time, or when permanently removing the freeze.
(d) If the consumer wishes to allow his or her credit reportto be accessed for a specific period of time while a freeze is in place, he orshe shall contact the consumer reporting agency, using a point of contactdesignated by the consumer reporting agency request that the freeze betemporarily lifted, and provide the following:
(1) Proper identification;
(2) The unique personal identification number or passwordprovided by the consumer reporting agency pursuant to subsection (c) of thissection;
(3) The proper information regarding the time period forwhich the report shall be available to users of the credit report; and
(4) A fee if applicable.
(e) A consumer reporting agency that receives a request froma consumer to temporarily lift a freeze on a credit report pursuant tosubsection (d) of this section shall comply with the request no later thanthree (3) business days after receiving the request.
(f) A consumer reporting agency may develop proceduresinvolving the use of telephone, fax, or, upon the consent of the consumer inthe manner required by the Electronic Signatures in Global and NationalCommerce Act hereinafter referred to as ("E-Sign") for legally requirednotices, by the Internet, e-mail, or other electronic media to receive andprocess a request from a consumer to temporarily lift a freeze on a creditreport pursuant to subsection (d) of this section in an expedited manner.
(g) A consumer reporting agency shall remove or temporarilylift a freeze placed on a consumer's credit report only in the following cases:
(1) Upon consumer request, pursuant to subsection (d) or (j)of this section; and
(2) If the consumer's credit report was frozen due to amaterial misrepresentation of fact by the consumer. If a consumer reportingagency intends to remove a freeze upon a consumer's credit report pursuant tothis paragraph, the consumer reporting agency shall notify the consumer inwriting prior to removing the freeze on the consumer's credit report.
(h) If a third-party requests access to a consumer creditreport on which a security freeze is in effect, and this request is inconnection with an application for credit or any other use, and the consumerdoes not allow his or her credit report to be accessed, then the third-partymay treat the application as incomplete.
(i) A security freeze shall remain in place until theconsumer requests using a point of contact designated by the consumer reportingagency, that the security freeze be removed. A consumer reporting agency shallremove a security freeze within three (3) business days of receiving a requestfor removal from the consumer, who provides all of the following:
(1) Proper identification;
(2) The unique personal identification number or passwordprovided by the consumer reporting agency pursuant to subsection (c) of thissection; and
(3) A fee, if applicable.
(j) A consumer reporting agency shall require properidentification of the person making a request to place or remove a securityfreeze.
(k) A consumer reporting agency may not suggest or otherwisestate or imply to a third- party that the consumer's security freeze reflects anegative credit score, history, report or rating.
(l) The provisions of this section do not apply to the use ofa consumer credit report by any of the following:
(1) A person, or the person's subsidiary, affiliate, agent,or assignee with which the consumer has or, prior to assignment, had anaccount, contract or debtor-creditor relationship for the purposes of reviewingthe account or collecting the financial obligation owing for the account,contract, or debt;
(2) A subsidiary, affiliate, agent, assignee, or prospectiveassignee of a person to whom access has been granted under subsection (d) ofthis section for purposes of facilitating the extension of credit or otherpermissible use;
(3) Any person acting pursuant to a court order, warrant, orsubpoena;
(4) A state or local agency which administers a program forestablishing and enforcing child support obligations;
(5) The department of health or its agents or assigns actingto investigate fraud;
(6) The attorney general or its agents or assigns acting toinvestigate fraud;
(7) The division of taxation or its agents or assigns actingto investigate or collect delinquent taxes or unpaid court orders or to fulfillany of its other statutory responsibilities;
(8) The use of a credit report by a person for purposes ofprescreening as defined by the federal Fair Credit Reporting Act (15 U.S.C.§ 1681 et. seq.);
(9) Any person or entity administering a credit filemonitoring subscription service to which the consumer has subscribed;
(10) Any person or entity for the purpose of providing aconsumer with a copy of his or her credit report upon the consumer's request;and
(11) Any person or entity for use in setting or adjusting arate, adjusting a claim, or underwriting for insurance purposes.
(m) A consumer may be charged a fee of no more than tendollars ($10.00) for any security freeze services, including, but not limitedto, the placement, temporary lifting and permanent removal of a securityfreeze. The consumer may not be charged for a one-time reissue of a newpersonal identification number; provided, however, the consumer may be chargednot more than five dollars ($5.00) for subsequent instances of loss of thepersonal identification number. However, a consumer reporting agency may notcharge any fee to a victim of identity theft who has submitted a copy of anincident report from or a complaint to a law enforcement agency, or to aconsumer who is of sixty-five (65) years of age or older.
Entities not required to place a security freeze.
(a) The following entities are not required to place asecurity freeze on a credit report:
(1) A consumer reporting agency that acts only as a resellerof credit information by assembling and merging information contained in thedatabase of another consumer reporting agency or multiple consumer creditreporting agencies, and does not maintain a permanent data base of creditinformation from which new consumer credit report are produced. However, aconsumer reporting agency acting as a reseller shall honor any security freezeplaced on a consumer credit report by another consumer reporting agency.
(2) A check services or fraud prevention services company,which issues reports on incidents of fraud or authorizations for the purpose ofapproving or processing negotiable instruments, electronic funds transfers, orsimilar methods of payments.
(3) A deposit account information service company, whichissues reports regarding account closures due to fraud, substantial overdrafts,ATM abuse, or similar negative information regarding a consumer, to inquiringbanks or other financial institutions for use only in reviewing a consumerrequest for a deposit account at the inquiring bank or financial institution.
(4) Any database or file which consists of any informationadverse to the interests of the consumer, including, but not limited to,criminal record information, personal loss history information, informationused for fraud prevention or detection, tenant screening, and employmentscreening.