SF 2054 (LSB 5085XS (3) 87)

SENATE FILE 2054

BY  ZAUN, CHAPMAN, CHELGREN, SINCLAIR, GREENE, D. JOHNSON, DAWSON, SCHNEIDER, CARLIN, EDLER, ROZENBOOM, BREITBACH, COSTELLO, SEGEBART, KAPUCIAN, and GUTH

A BILL FOR

An Act relating to consumer protection modifying provisions applicable to consumer security freezes and including effective date provisions. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 714G.2, Code 2018, is amended to read as follows:
   714G.2  Security freeze.

   1.  A consumer may submit by certified mail to a consumer reporting agency a written request for a security freeze to a consumer reporting agency by first-class mail, telephone, facsimile, secure internet connection, secure electronic mail, or other secure electronic contact method. The consumer must submit proper identification and the applicable fee with the request. Within five three business days after receiving the request, the consumer reporting agency shall commence the security freeze. Within ten three business days after commencing the security freeze, the consumer reporting agency shall send a written confirmation to the consumer of the security freeze, a personal identification number or password, other than the consumer’s social security number, for the consumer to use in authorizing the suspension or removal of the security freeze, including information on how the security freeze may be temporarily suspended.
   2.  a.  If a consumer requests a security freeze from a consumer reporting agency that compiles and maintains files on a nationwide basis, the consumer may request to have the security freeze applied to any other consumer reporting agency that compiles and maintains files on consumers on a nationwide basis.
   b.  For purposes of this subsection, “consumer reporting agency that compiles and maintains files on a nationwide basis” means the same as defined in 15 U.S.C. §1681a(p).
    Sec. 2.  Section 714G.3, subsection 1, Code 2018, is amended to read as follows:
   1.  A consumer may request that a security freeze be temporarily suspended to allow the consumer reporting agency to release the consumer credit report for a specific time period. The consumer reporting agency may shall develop procedures to expedite the receipt and processing of requests which may involve the use of telephones by first-class mail, telephone, facsimile transmissions, the secure internet connection, secure electronic mail, or other secure electronic media contact method. The consumer reporting agency shall comply with the request within three business days after receiving the consumer’s written request, or within fifteen minutes after the consumer’s request is received by the consumer reporting agency through facsimile, the secure internet connection, secure electronic mail, or other secure electronic contact method chosen by the consumer reporting agency, or the use of a telephone, during normal business hours. The consumer’s request shall include all of the following:
   a.  Proper identification.
   b.  The personal identification number or password provided by the consumer reporting agency.
   c.  Explicit instructions of the specific time period designated for suspension of the security freeze.
   d.  Payment of the applicable fee.
    Sec. 3.  Section 714G.4, unnumbered paragraph 1, Code 2018, is amended to read as follows:
   A security freeze remains in effect until the consumer requests that the security freeze be removed. A consumer reporting agency shall remove a security freeze within three business days after receiving a request for removal that includes proper identification of the consumer, and the personal identification number or password provided by the consumer reporting agency, and payment of the applicable fee.
    Sec. 4.  Section 714G.5, Code 2018, is amended to read as follows:
   714G.5  Fees prohibited.
   1.  A consumer reporting agency shall not charge any fee to a consumer who is the victim of identity theft for commencing a security freeze, temporary suspension, or removal if with the initial security freeze request, the consumer submits a valid copy of the police report concerning the unlawful use of identification information by another person.
   2.  A consumer reporting agency may charge a fee not to exceed ten dollars to a consumer who is not the victim of identity theft for each security freeze, removal, or for reissuing a personal identification number or password if the consumer fails to retain the original number. The consumer reporting agency may charge a fee not to exceed twelve dollars for each temporary suspension of a security freeze.
   A consumer reporting agency shall not charge a fee to a consumer for providing any service pursuant to this chapter, including but not limited to placing, removing, temporarily suspending, or reinstating a security freeze.
    Sec. 5.  Section 714G.8A, subsection 1, paragraph d, Code 2018, is amended by striking the paragraph.
    Sec. 6.  Section 714G.8A, subsection 3, paragraph d, Code 2018, is amended by striking the paragraph.
    Sec. 7.  Section 714G.8A, subsection 5, Code 2018, is amended to read as follows:
   5.  a.  A consumer reporting agency may shall not charge a reasonable fee, not to exceed five dollars, for each the placement, or removal, or reinstatement of a protected consumer security freeze. A consumer reporting agency may not charge any other fee for a service performed pursuant to this section.
   b.  Notwithstanding paragraph “a”, a fee may not be charged by a consumer reporting agency pursuant to either of the following:
   (1)  If the protected consumer’s representative has obtained a police report or affidavit of alleged identity theft under section 715A.8 and submits a copy of the report or affidavit to the consumer reporting agency.
   (2)  A request for the commencement or removal of a protected consumer security freeze is for a protected consumer who is under the age of sixteen years at the time of the request and the consumer reporting agency has a consumer credit report pertaining to the protected consumer.
    Sec. 8.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to consumer security freezes.
   Current law permits a consumer to submit a request for a security freeze via certified mail. The bill expands the methods permitted for a consumer to submit a request for a security freeze to allow such requests to be submitted via first-class mail, telephone, facsimile, secure internet connection, secure electronic mail, or other secure electronic contact method. 
   The bill reduces the number of days by which a consumer reporting agency must commence a security freeze after receiving a request from five to three business days. The bill also reduces the number of days by which a consumer reporting agency must send written confirmation to a consumer after commencing a security freeze from ten to three business days.
   The bill provides that if a consumer requests a security freeze from a consumer reporting agency that compiles and maintains files on a nationwide basis, as defined in the bill, the consumer may request to have the security freeze applied to any other similar consumer reporting agency.
   The bill requires consumer reporting agencies to develop procedures to expedite the receipt and processing of security freeze suspension requests received via the same methods permitted for consumers to submit such requests. The bill requires a consumer reporting agency to commence a security freeze suspension within 15 minutes after receiving a request through telephone, facsimile, secure internet connection, secure electronic mail, or other secure electronic contact method.
   The bill prohibits consumer reporting agencies from charging fees to consumers for providing any service pursuant to Code chapter 714G, including but not limited to placing, removing, temporarily suspending, or reinstating a security freeze. The bill also prohibits consumer reporting agencies from charging fees for placing or removing a protected consumer security freeze pursuant to Code section 714G.8A. The bill removes several references to payment of fees in Code chapter 714G. 
   The bill takes effect upon enactment.