Restricting the release of credit information about certain protected individuals and providing a penalty. (FE)

This bill provides for additional security freezes by allowing representatives to obtain security freezes on behalf of protected consumers. The bill defines a "protected consumer" as either: 1) an individual who is under 16 years old; or 2) an individual for whom a guardian or conservator has been appointed. The bill defines a "representative" as a person who provides "sufficient proof of authority" to act on behalf of a protected consumer, which is defined to include: 1) a court order; 2) a power of attorney; or 3) a notarized statement describing the authority to act on behalf of a protected consumer. Under the bill, a representative may request a security freeze for a protected consumer by providing a CRA with the sufficient proof of authority described above, as well as "sufficient proof of identification" of both the representative and protected consumer. The bill defines "sufficient proof of identification" to include: 1) a social security number (SSN) or copy of a SSN card;

2) a certified or official copy of a birth certificate; or 3) a copy of a motor vehicle operator's license or identification card.

If a CRA receives a representative's request for a security freeze on behalf of a protected consumer, and the CRA already has a file on the protected consumer, the CRA must place a security freeze that prohibits the CRA from releasing the protected consumer's credit report. If the CRA does not have a file on the protected consumer, the CRA must place a security freeze by creating a record identifying the protected consumer. The bill prohibits using the record for credit considerations. The bill requires a CRA to verify that it has no file by checking names and SSNs in its existing files. The bill requires a CRA to place a security freeze within 30 days after receiving a request that complies with the bill, regardless of whether the CRA already has a file on the protected consumer. Upon placement of a security freeze, the CRA may not release the protected consumer's credit report, any information derived from the credit report, or any record created under the bill, unless the security freeze is removed as discussed below.

The bill also does the following:

1. Creates procedures for representatives and protected consumers to have CRAs remove security freezes and allows CRAs to remove security freezes based on material misrepresentation of fact by representatives or protected consumers.

2. Allows CRAs to charge a reasonable fee not exceeding $10 for placing or removing security freezes, but prohibits fees in cases involving identity theft or protected consumers under 16 years old who already have files at CRAs.

3. Creates exceptions from the bill's requirements, including the exceptions that apply to security freeze restrictions under current law, as well as exceptions for information used for criminal records, fraud prevention or detection, personal loss history information, or certain background screening purposes.

4. Allows the Department of Agriculture, Trade and Consumer Protection and the Department of Justice to bring actions to enforce the bill's requirements.

5. Subjects a person who violates the bill to a civil forfeiture of not more than $1,000 per violation.