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AB-608 Consumer credit reports: security freezes: protected consumers. (2017-2018)

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Date Published: 02/13/2018 09:00 PM
AB608:v95#DOCUMENT

Amended  IN  Senate  February 13, 2018
Amended  IN  Assembly  January 03, 2018
Amended  IN  Assembly  May 03, 2017
Amended  IN  Assembly  March 01, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 608


Introduced by Assembly Member Irwin
(Coauthors: Assembly Members Cervantes, Muratsuchi, and Quirk-Silva)
(Coauthors: Senators Hill and Newman)

February 14, 2017


An act to amend Section 1785.11.11 of the Civil Code, relating to consumer credit. credit, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


AB 608, as amended, Irwin. Consumer credit reports: security freezes: protected consumers.
The Consumer Credit Reporting Agencies Act permits a consumer to place a security freeze on his or her credit report to prohibit the release of the consumer’s credit reporting information, subject to certain exceptions, by making a request in writing by mail to a consumer credit reporting agency.
The act also requires a consumer credit reporting agency, in certain circumstances, to place a security freeze on behalf of a “protected consumer,” defined to include an individual under 16 years of age at the time a request for the placement of a security freeze is made, an incapacitated person, an individual for whom a guardian or conservator has been appointed, or a person in foster care under county jurisdiction who meets certain conditions. With respect to placing a security freeze for a protected consumer, a consumer credit reporting agency is required to do so if it receives a request from the protected consumer’s representative, along with certain identifying information and proof of authority to act on behalf of the protected consumer, and if that representative pays to the consumer credit reporting agency a fee, not to exceed $10 for each placement or removal of a security freeze, subject to specified exceptions.
This bill would prohibit a consumer credit reporting agency from charging fees for these services.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: MAJORITY2/3   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1785.11.11 of the Civil Code is amended to read:

1785.11.11.
 (a) A consumer credit reporting agency shall place a security freeze for a protected consumer if both of the following occur:
(1) The consumer credit reporting agency receives a request from the protected consumer’s representative for the placement of the security freeze pursuant to this section.
(2) The protected consumer’s representative does all of the following:
(A) Submits the request to the consumer credit reporting agency at the address or other point of contact and in the manner specified by the consumer credit reporting agency.
(B) Provides to the consumer credit reporting agency sufficient proof of identification of the protected consumer and the representative.
(C) Provides to the consumer credit reporting agency sufficient proof of authority to act on behalf of the protected consumer.
(b) If a consumer credit reporting agency does not have a file pertaining to a protected consumer when the consumer credit reporting agency receives a request pursuant to paragraph (1) of subdivision (a), the consumer credit reporting agency shall create a record for the protected consumer.
(c) If a protected consumer’s representative requests a security freeze, the consumer credit reporting agency shall disclose the process for placing and removing a security freeze.
(d) Within 30 days after receiving a request that meets the requirements of subdivision (a), a consumer credit reporting agency shall place a security freeze for the protected consumer. The consumer credit reporting agency shall send written confirmation of the security freeze to the address on file within 10 days of the placement of the security freeze.
(e) Unless a security freeze for a protected consumer is removed pursuant to subdivision (h) or (j), a consumer credit reporting agency shall not release the protected consumer’s consumer credit report, any information derived from the protected consumer’s consumer credit report, or any record created for the protected consumer.
(f) A security freeze for a protected consumer placed pursuant to this section shall remain in effect until either of the following occurs:
(1) The protected consumer or the protected consumer’s representative requests that the consumer credit reporting agency remove the security freeze in accordance with subdivision (h).
(2) The security freeze is removed in accordance with subdivision (j).
(g) To remove a security freeze, a protected consumer or a protected consumer’s representative shall do both of the following:
(1) Submit a request for removal of the security freeze to the consumer credit reporting agency at the address or other point of contact and in the manner specified by the consumer credit reporting agency.
(2) Provide to the consumer credit reporting agency:
(A) If the request is made by the protected consumer:
(i) Proof that the sufficient proof of authority for the protected consumer’s representative to act on behalf of the protected consumer is no longer valid, he or she has been emancipated, or he or she is 16 years of age or older.
(ii) Sufficient proof of identification of the protected consumer.
(B) If the request is made by the representative of a protected consumer:
(i) Sufficient proof of identification of the protected consumer and the representative.
(ii) Sufficient proof of authority to act on behalf of the protected consumer.
(h) Within 30 days after receiving a request that meets the requirements of subdivision (g), a consumer credit reporting agency shall remove a security freeze for a protected consumer.
(i) A consumer credit reporting agency may not charge a fee for any service performed pursuant to this section.
(j) A consumer credit reporting agency is authorized to remove a security freeze for a protected consumer or to delete a record of a protected consumer if the security freeze was placed or the record was created based upon a material misrepresentation of fact by the protected consumer or the protected consumer’s representative.
(k) A consumer credit reporting agency may develop procedures involving the use of telephone, mail, fax, the Internet, or other electronic media to receive and process a request for a protected consumer’s security freeze to be placed or removed.

SEC. 2.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
To remove barriers for the representatives of protected consumers, who may be the victims of data breaches, to freeze the credit reports, and to protect the identity of protected consumers as soon as possible, it is necessary that this bill take effect immediately.