Identity Theft Protection Act of 2006 - Amends the Fair Credit Reporting Act to permit a consumer to request a consumer reporting agency to place a security freeze upon his consumer report.
Prohibits a consumer reporting agency, if a security freeze is in place, from releasing a consumer report to a third party without prior express authorization from the consumer.
Prescribes procedures for removal and temporary suspension of a security freeze.
Requires a consumer reporting agency to notify the consumer in writing before removing the security freeze.
Identifies specified entities, including governmental agencies, to which these prohibitions and requirements do not apply.
Permits a consumer reporting agency to charge a reasonable fee for placing or temporarily suspending a security freeze on a consumer report.
Prohibits a consumer reporting agency from charging a fee for placing, removing, or temporarily suspending a security freeze if a consumer: (1) has either filed a police report, or made a complaint to a police department concerning identity theft; or (2) has received notice that a breach of data security has occurred with respect to information required by law to be maintained securely and in confidence.
Exempts specified entities from this Act, including certain aggregators and other agencies acting only as resellers of credit information which do not maintain a permanent data base of consumer information from which new consumer reports are produced.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5482 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5482
To amend the Fair Credit Reporting Act to provide individuals the
ability to control access to their credit reports, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 25, 2006
Mrs. Maloney introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Fair Credit Reporting Act to provide individuals the
ability to control access to their credit reports, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Identity Theft Protection Act of
2006''.
SEC. 2. PROTECTION OF DATA THROUGH SECURITY FREEZE.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.) is amended by inserting after section 605B (relating to block
resulting from identity theft) the following new section:
``Sec. 605C. Protection of data through security freeze
``(a) In General.--
``(1) Emplacement.--A consumer may place a security freeze
on the consumer report of the consumer by making a request to a
consumer reporting agency in writing or by telephone.
``(2) Consumer disclosure.--If a consumer requests a
security freeze, the consumer reporting agency shall disclose
to the consumer the process of placing and removing the
security freeze and explain to the consumer the potential
consequences of the security freeze.
``(b) Effect of Security Freeze.--
``(1) Release of information blocked.--If a security freeze
is in place on a consumer report of a consumer, a consumer
reporting agency may not release the consumer report or
information from the consumer report to a third party without
prior express authorization from the consumer.
``(2) Information provided to third parties.--Paragraph (2)
shall not be construed as preventing a consumer reporting
agency from advising a third party that a security freeze is in
effect with respect to a consumer report of a consumer.
``(3) Treatment as incomplete application.--If a third
party, in connection with an application for credit, requests
access to a consumer report on which a security freeze is in
place, the third party may treat the application as incomplete.
``(c) Removal; Temporary Suspension.--
``(1) In general.--Except as provided in paragraph (4), a
security freeze shall remain in place until the consumer
requests that the security freeze be removed. A consumer may
remove a security freeze on the consumer report of the consumer
by making a request to a consumer reporting agency in writing
or by telephone.
``(2) Conditions.--A consumer reporting agency may remove a
security freeze placed on the consumer report of a consumer
only--
``(A) upon the consumer's request, pursuant to
paragraph (1); or
``(B) if the agency determines that the consumer
report of a consumer was frozen due to a material
misrepresentation of fact by the consumer.
``(3) Notification to consumer.--If a consumer reporting
agency intends to remove a freeze upon the consumer report of a
consumer pursuant to paragraph (2)(B), the consumer reporting
agency shall notify the consumer in writing prior to removing
the freeze on the consumer report.
``(4) Temporary suspension.--A consumer may have a security
freeze on the consumer report of the consumer temporarily
suspended by making a request to a consumer reporting agency in
writing or by telephone and specifying beginning and ending
dates for the period during which the security freeze is not to
apply to the consumer report of the consumer.
``(d) Response Times; Notification of Other Entities.--
``(1) In general.--A consumer reporting agency shall--
``(A) place a security freeze on the consumer
report of a consumer under subsection (a) not later
than 5 business days after receiving a request from the
consumer under subsection (a)(1); and
``(B) remove, or temporarily suspend, a security
freeze within 3 business days after receiving a request
for removal or temporary suspension from the consumer
under subsection (c).
``(2) Notification of other covered entities.--If the
consumer requests in writing or by telephone that other covered
entities be notified of the request, the consumer reporting
agency shall notify all other consumer reporting agencies
described in section 603(p)(1) of the request within 3 days
after placing, removing, or temporarily suspending a security
freeze on the consumer report of the consumer under subsection
(a), (c)(2)(A), or (c)(4), respectively.
``(3) Implementation by other covered entities.--A consumer
reporting agency that is notified of a request under paragraph
(2) to place, remove, or temporarily suspend a security freeze
on a consumer report of a consumer shall place, remove, or
temporarily suspend the security freeze on that consumer report
within 3 business days after receiving the notification.
``(e) Confirmation.--
``(1) In general.--Whenever a consumer reporting agency
places, removes, or temporarily suspends a security freeze on
the consumer report of a consumer at the request of that
consumer under subsection (a) or (c), respectively, the
consumer reporting agency shall send a written confirmation of
such action to the consumer within 10 business days after
placing, removing, or temporarily suspending the security
freeze on the consumer report.
``(2) Exception.--This subsection shall not apply to the
placement, removal, or temporary suspension of a security
freeze by a consumer reporting agency because of a notification
received under subsection (d)(2).
``(f) ID Required.--A consumer reporting agency may not place,
remove, or temporarily suspend a security freeze on the consumer report
of a consumer at the consumer's request unless the consumer provides
proper identification (within the meaning of section 610(a)(1)) and the
regulations prescribed under such subsection.
``(g) Exceptions.--This section shall not apply to the use of a
consumer credit report by any of the following:
``(1) A person or entity, or a subsidiary, affiliate, or
agent of that person or entity, or an assignee of a financial
obligation owing by the consumer to that person or entity, or a
prospective assignee of a financial obligation owing by the
consumer to that person or entity in conjunction with the
proposed purchase of the financial obligation, with which the
consumer has or had prior to assignment an account or contract,
including a demand deposit account, or to whom the consumer
issued a negotiable instrument, for the purposes of reviewing
the account or collecting the financial obligation owing for
the account, contract, or negotiable instrument.
``(2) Any Federal, State or local agency, law enforcement
agency, trial court, or private collection agency acting
pursuant to a court order, warrant, or subpoena.
``(3) A child support agency or its agents or assigns
acting pursuant to subtitle D of title IV of the Social
Security Act or similar State law.
``(4) The Department of Health and Human Services, a
similar State agency, or the agents or assigns of the Federal
or State agency acting to investigate medicare or medicaid
fraud.
``(5) The Internal Revenue Service or a State or municipal
taxing authority, or a State department of motor vehicles, or
any of the agents or assigns of these Federal, State, or
municipal agencies acting to investigate or collect delinquent
taxes or unpaid court orders or to fulfill any of their other
statutory responsibilities.
``(6) The use of consumer credit information for the
purposes of prescreening as provided under this title.
``(7) Any person or entity administering a credit file
monitoring subscription to which the consumer has subscribed.
``(8) Any person or entity for the purpose of providing a
consumer with a copy of his or her credit report or credit
score upon the consumer's request.
``(h) Fees.--
``(1) In general.--
``(A) Certain reasonable fees allowed.--Except as
provided in paragraph (2), a consumer reporting agency
may charge a reasonable fee, as determined by the
Commission, for placing or temporarily suspending a
security freeze on the consumer report of a consumer.
``(B) Factors to be considered.--In considering
what is reasonable for the purpose of subparagraph (A),
the Commission shall consider the prevailing fees
permitted by State law immediately before the date of
the enactment of the Identity Theft Protection Act of
2006.
``(C) Fee for removal of freeze prohibited.--No fee
may be charged for removal of a security freeze.
``(2) ID theft victims.--A consumer reporting agency may
not charge a fee for placing, removing, or temporarily
suspending a security freeze on the consumer report of a
consumer if--
``(A) the consumer--
``(i) is a victim of identity theft; and
``(ii) has filed a police report,
investigative report, or complaint made to a
police department with respect to the theft; or
``(B) the consumer is the recipient of a notice
that a breach of data security has occurred with
respect to information of the consumer that is required
by law to be maintained securely and in confidence.
``(i) Limitation on Information Changes in Frozen Reports.--
``(1) In general.--If a security freeze is in place on the
consumer report of a consumer, a consumer reporting agency may
not change any of the following official information in that
consumer report without sending a written confirmation of the
change to the consumer within 30 days after the change is made:
``(A) Name.
``(B) Date of birth.
``(C) Social Security number.
``(D) Address.
``(2) Confirmation.--
``(A) In general.--Paragraph (1) shall not be
construed as requiring written confirmation for
technical modifications of a consumer's official
information, including name and street abbreviations,
complete spellings, or transposition of numbers or
letters.
``(B) Old and new addresses.--In the case of an
address change, the written confirmation shall be sent
to both the new address and to the former address.
``(j) Certain Entity Exemptions.--
``(1) Aggregators and other agencies.--The provisions of
subsections (a) through (h) shall not apply to a consumer
reporting agency that acts only as a reseller of credit
information by assembling and merging information contained in
the data base of another consumer reporting agency or multiple
consumer reporting agencies, and does not maintain a permanent
data base of consumer information from which new consumer
reports are produced.
``(2) Other exempted entities.--The following entities
shall not be required to place a security freeze in a consumer
report under this section:
``(A) A check services or fraud prevention services
company, which issues reports on incidents of fraud or
authorizations for the purpose of approving or
processing negotiable instruments, electronic funds
transfers, or similar methods of payments.
``(B) A deposit account information service
company, which issues reports regarding account
closures due to fraud, substantial overdrafts,
automated teller machine abuse, or similar negative
information regarding a consumer, to inquiring
depository institutions or other financial institutions
for use only in reviewing a consumer request for a
deposit account at the inquiring depository institution
or other financial institution.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect at the end of the 6-month period beginning on the date of
the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Sponsor introductory remarks on measure. (CR E993)
Sponsor introductory remarks on measure. (CR H5285)
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
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