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
`(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.
`(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.
`(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--
`(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:
`(C) Social Security number.
`(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.
END
