SB 283

Current law, with certain exceptions, allows an individual to prohibit a

consumer reporting agency (credit reporting agency) from releasing the individual's

consumer report (credit report) for any purpose related to the extension of credit

without the individual's prior authorization. If an individual makes a proper request

to a credit reporting agency, provides proper identification, and pays any applicable

fee, the credit reporting agency must include a "security freeze" on the individual's

credit report. A credit reporting agency may not release an individual's credit report

for an extension of credit if the report includes a security freeze. There are various

exceptions to these requirements, including credit reporting agencies to which the

requirements do not apply and exceptions allowing a credit reporting agency to

release an individual's credit report that includes a security freeze for specified

purposes or under specified circumstances. Current law also includes procedures for

an individual to authorize release of a credit report that includes a security freeze.

Under current law, if a credit report includes a security freeze, the credit

reporting agency may not make changes in the report to the individual's name, date

of birth, social security number, or address without providing written notice of the

change to the individual. A credit reporting agency must remove a security freeze

upon an individual's request, but may charge a fee to do so.

This bill allows a "representative" of a "protected individual" to obtain a

security freeze on the protected individual's credit report. A "protected individual"

is an individual: 1) who is less than 18 years of age (minor); 2) for whom a guardian

of the estate or a conservator has been appointed; or 3) who has executed a durable

power of attorney. A "representative" is: 1) a parent who has legal custody of a minor,

the guardian or legal custodian of a minor, or a person delegated care and custody

of a minor; 2) a guardian of the estate or conservator appointed for a protected

individual; or 3) an agent of an individual under a durable power of attorney. In

general, the same procedures and requirements apply to a representative acting on

behalf of a protected individual as apply when an individual acts on his or her own

behalf.

Under the bill, if a protected individual does not have a credit report, the

representative may request that a credit reporting agency create a record for the

protected individual and treat that record in the same manner as a credit report for

purposes of placing a security freeze. If a representative of a minor requests a

security freeze for the minor, when the minor reaches age 18, the credit reporting

agency must remove the security freeze and may thereafter honor requests only from

the individual who was formerly a minor, not from the representative. If any other

representative makes a request for a security freeze for a protected individual, and

the guardianship, conservatorship, or durable power of attorney with respect to the

protected individual is terminated, the representative must notify the credit

reporting agency. Upon receiving this notice, or if the credit reporting agency's own