H.572

Introduced by   Representatives Louras of Rutland City, Condon of Colchester, Houston of Ferrisburgh, Howard of Rutland City, Keenan of St. Albans City, Kitzmiller of Montpelier, Marcotte of Coventry and Morley of Barton

Referred to Committee on

Date:

Subject: Commerce and trade; consumer fraud; fair credit reporting

Statement of purpose:  This bill proposes to allow any consumer to place a security freeze on his or her credit report.  There would be no charge for victims of identity theft and consumers over 64 years of age.  All other consumers would pay an $8.00 fee, but any consumer could temporarily lift the security freeze at no charge.

AN ACT RELATING TO PLACING A SECURITY FREEZE ON A CREDIT REPORT

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  9 V.S.A. § 2480a is amended to read:

§ 2480a.  DEFINITIONS

For purposes of this subchapter:

* * *

(7)  “Security freeze” means a notice placed in a credit report, at the request of the consumer who is a victim of identity theft, pursuant to section 2480h of this title.

Sec. 2.  9 V.S.A. § 2480b is amended to read:

§ 2480b.  DISCLOSURES TO CONSUMERS

* * *

(c)  Any time a credit reporting agency is required to make a written disclosure to consumers pursuant to 15 U.S.C. § 1681g, it shall disclose, in at least 12 point type, and in bold type as indicated, the following notice:

NOTICE TO VERMONT CONSUMERS

* * *

Vermont Consumers Who Are Victims of Identity Theft

Have the Right to Obtain a Security Freeze

You may obtain a security freeze on your credit report at no charge if you are a victim of identity theft and you or over 64 years of age.  If you are a victim of identity theft, you must submit with your request for a security freeze a copy of a police report, investigative report, or complaint you have filed with a law enforcement agency about unlawful use of your personal information by another person.  You have a right to place a “security freeze” on your credit report pursuant to 9 V.S.A.§ 2480h.  If you are not a victim of identity theft or over 64 years of age, you may place a security freeze on your credit report for a charge by each credit reporting agency of no more than $8.00. 

The security freeze will prohibit a credit reporting agency from releasing any information in your credit report without your express authorization.  A security freeze must be requested in writing by certified mail.

* * *

Sec. 3.  9 V.S.A. § 2480h(a) is amended to read:

§ 2480h.  SECURITY FREEZE BY CREDIT REPORTING AGENCY; TIME

                 IN EFFECT

(a)  A Vermont consumer may place a security freeze on his or her credit report.  A consumer who has been the victim of identity theft may place a security freeze on his or her credit report by making a request in writing by certified mail to a credit reporting agency with a valid copy of a police report, investigative report, or complaint the consumer has filed with a law enforcement agency about unlawful use of his or her personal information by another person.  A credit reporting agency shall not charge a fee for placing, removing, or removing for a specific party or parties a security freeze on a credit report to a consumer who is over 64 years of age or to a consumer who is a victim of identity theft and who provides the credit reporting agency with a valid copy of a police report, investigative report, or complaint the consumer has filed with a law enforcement agency about unlawful use of his or her personal information by another person.  A consumer who has not been a victim of identity theft may place a security freeze on his or her credit report by making a request in writing by certified mail to a credit reporting agency.  A credit reporting agency may charge a fee of no more than $8.00 for placing a security freeze on a credit report to a consumer who is not a victim of identity theft or who is not over 64 years of age.  A credit reporting agency shall not charge a consumer for removing or removing for a specific party or parties a security freeze.  A security freeze shall prohibit, subject to the exceptions in subsection (l) of this section, the credit reporting agency from releasing the consumer’s credit report or any information from it without the express authorization of the consumer.  When a security freeze is in place, information from a consumer’s credit report shall not be released to a third party without prior express authorization from the consumer.  This subsection does not prevent a credit reporting agency from advising a third party that a security freeze is in effect with respect to the consumer’s credit report.