Text: HSB00036 Text: HSB00038 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 DIVISION I
1 2 Section 1. NEW SECTION. 714.16B IDENTITY THEFT – CIVIL
1 3 CAUSE OF ACTION.
1 4 In addition to any other remedies provided by law, a person
1 5 as defined under section 714.16, subsection 1, suffering a
1 6 pecuniary loss as a result of an identity theft by another
1 7 person under section 715A.8, may bring an action against such
1 8 other person to recover the following:
1 9 1. One thousand dollars or three times the actual damages,
1 10 whichever is greater.
1 11 2. Reasonable attorney fees and court costs.
1 12 Sec. 2. NEW SECTION. 715A.8 IDENTITY THEFT.
1 13 1. For purposes of this section, "identification
1 14 information" means the name, address, date of birth, telephone
1 15 number, driver's license number, nonoperator's identification
1 16 number, social security number, place of employment, employee
1 17 identification number, parent's legal surname prior to
1 18 marriage, demand deposit account number, savings or checking
1 19 account number, or credit card number of a person.
1 20 2. A person commits the offense of identity theft if the
1 21 person knowingly obtains identification information of another
1 22 person and uses or attempts to use that information to obtain
1 23 credit, property, or services without the authorization of
1 24 that other person.
1 25 3. If the value of the credit, property, or services
1 26 exceeds one thousand dollars, the person commits a class "D"
1 27 felony. If the value of the credit, property, or services
1 28 does not exceed one thousand dollars, the person commits an
1 29 aggravated misdemeanor.
1 30 4. A violation of this section is an unlawful practice
1 31 under section 714.16.
1 32 Sec. 3. NEW SECTION. 715A.9 VALUE FOR PURPOSES OF
1 33 IDENTITY THEFT.
1 34 The value of property or services is its highest value by
1 35 any reasonable standard at the time the identity theft is
2 1 committed. Any reasonable standard includes but is not
2 2 limited to market value within the community, actual value, or
2 3 replacement value.
2 4 If credit, property, or services are obtained by two or
2 5 more acts from the same person or location, or from different
2 6 persons by two or more acts which occur in approximately the
2 7 same location or time period so that the identity thefts are
2 8 attributable to a single scheme, plan, or conspiracy, the acts
2 9 may be considered as a single identity theft and the value may
2 10 be the total value of all credit, property, and services
2 11 involved.
2 12 DIVISION II
2 13 Sec. 4. NEW SECTION. 537.9101 DEFINITIONS.
2 14 1. "Consumer report" means any written, oral, or other
2 15 communication of any information by a consumer reporting
2 16 agency bearing on a consumer's creditworthiness, credit
2 17 standing, credit capacity, character, general reputation,
2 18 personal characteristics, or mode of living which is used or
2 19 expected to be used or collected in whole or in part for the
2 20 purpose of any of the following:
2 21 a. To serve as a factor in establishing the consumer's
2 22 eligibility for credit or insurance to be used primarily for
2 23 personal, family, or household purposes.
2 24 b. To serve as a factor in establishing the consumer's
2 25 eligibility for employment.
2 26 c. To be provided to a person who the consumer reporting
2 27 agency has reason to believe has a legitimate need for the
2 28 information, in connection with a business transaction that is
2 29 initiated by the consumer or to review an account to determine
2 30 whether the consumer continues to meet the terms of the
2 31 account.
2 32 2. "Consumer reporting agency" means any person or legal
2 33 entity which engages in the practice of assembling or
2 34 evaluating consumer credit information or other information on
2 35 consumers for the purpose of furnishing consumer reports to
3 1 third parties requesting consumer reports.
3 2 Sec. 5. NEW SECTION. 537.9102 CREDIT ISSUING PRACTICES.
3 3 If a person intends to issue credit to a consumer who
3 4 appears in person on the basis of an application for credit
3 5 submitted in person, a consumer reporting agency contacted by
3 6 the person, in deciding whether to grant the credit
3 7 application shall, with a reasonable degree of certainty,
3 8 match at least three categories of identifying information
3 9 within the file maintained by the consumer reporting agency on
3 10 the consumer with the information provided to the consumer
3 11 reporting agency by the person. The categories of identifying
3 12 information may include, but are not limited to, name, date of
3 13 birth, driver's license number, place of employment, current
3 14 residence address, previous residence address, or social
3 15 security number. The categories of identifying information
3 16 shall not include a parent's surname prior to marriage.
3 17 Sec. 6. NEW SECTION. 537.9103 REPORTING TO A CONSUMER
3 18 REPORTING AGENCY.
3 19 1. If a consumer submits to a consumer reporting agency a
3 20 copy of a valid report to a law enforcement agency pertaining
3 21 to an identity theft, the consumer reporting agency shall
3 22 promptly and permanently block reporting any information that
3 23 the consumer alleges appears on the consumer's consumer report
3 24 as a result of a violation of section 715A.8. The consumer
3 25 reporting agency shall promptly notify the person furnishing
3 26 the information that the information has been blocked.
3 27 2. Persons furnishing information and consumer reporting
3 28 agencies shall ensure that a permanent block on the reporting
3 29 of information is removed only when a preponderance of the
3 30 evidence exists establishing the facts required under
3 31 paragraphs "a" and "b". The permanent block on the reporting
3 32 of information shall be removed if any of the following
3 33 applies:
3 34 a. The information was blocked due to fraud.
3 35 b. The consumer agrees that the blocked information was
4 1 blocked in error.
4 2 3. If a block is removed pursuant to this section, the
4 3 consumer shall be promptly notified in the same manner as
4 4 consumers are notified of the reinsertion of information.
4 5 Sec. 7. NEW SECTION. 537.9104 APPLICABILITY.
4 6 This article applies to a consumer credit transaction as
4 7 defined in section 537.1301, subsection 11, but also includes
4 8 consumer credit sales of goods and services, consumer leases,
4 9 and consumer loans where the amount financed is more than
4 10 twenty-five thousand dollars, notwithstanding section
4 11 537.1301, subsection 12, paragraph "a", subparagraph (5);
4 12 section 537.1301, subsection 13, paragraph "a", subparagraph
4 13 (4); and section 537.1301, subsection 14, paragraph "a",
4 14 subparagraph (5).
4 15 Sec. 8. NEW SECTION. 537.9105 REMEDIES.
4 16 1. A consumer who suffers a pecuniary loss as a result of
4 17 a violation of this article by a person, including, but not
4 18 limited to, a consumer reporting agency, has a cause of action
4 19 against the person for the greater of five hundred dollars or
4 20 actual damages, plus reasonable attorney fees and court costs.
4 21 2. A violation of this article is an unlawful practice
4 22 under section 714.16.
4 23 EXPLANATION
4 24 This bill creates the new crime of identity theft. A
4 25 person must first knowingly obtain identification information
4 26 of another such as a name, birth date, driver's license
4 27 number, or social security number. If the person uses or
4 28 attempts to use that information to obtain credit, goods, or
4 29 services and the value of the credit, goods, or services
4 30 exceeds $1,000, the person commits a class "D" felony. If the
4 31 value of the credit, goods, or services does not exceed
4 32 $1,000, the person commits an aggravated misdemeanor.
4 33 The bill also establishes a civil remedy for the victims of
4 34 an identity theft crime against the perpetrator in addition to
4 35 any criminal sanctions that may be imposed. The victim of an
5 1 identity theft may sue the perpetrator of an identity theft
5 2 for $1,000 or up to three times the amount of actual damages,
5 3 whichever is greater, and for reasonable attorney fees and
5 4 court costs. In addition the bill provides that the
5 5 commission of identity theft constitutes an unlawful practice
5 6 under Code section 714.16, which prohibits and provides
5 7 various civil penalties and remedies for consumer fraud.
5 8 The bill provides that committing identity theft and
5 9 certain disclosures of blocked information by a consumer
5 10 reporting agency are violations of the consumer fraud Act.
5 11 The bill also provides that an entity taking credit
5 12 applications in person must first confirm three personal
5 13 identification categories with a consumer reporting agency
5 14 before a line of credit is established.
5 15 The bill further allows the victim to submit a police
5 16 report pertaining to the identity theft to a consumer
5 17 reporting agency which would then require the agency to stop
5 18 any negative credit information from being released. A
5 19 consumer reporting agency may release negative credit
5 20 information after the police report is filed if the victim
5 21 submitted a fraudulent police report, or the victim agrees the
5 22 negative credit information was not due to identity theft.
5 23 If a victim suffers a loss as a result of a consumer
5 24 reporting agency release of negative credit information in
5 25 violation of this bill, the victim may sue the person
5 26 releasing the information for actual damages plus attorney
5 27 fees and court costs. The person releasing the information
5 28 may also be required to pay civil penalties and reimbursement
5 29 for damages under the consumer fraud provisions in Code
5 30 section 714.16.
5 31 LSB 1081DP 78
5 32 jm/jw/5.2
Text: HSB00036 Text: HSB00038 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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