S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6250
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                    March 18, 2015
                                      ___________
       Introduced  by M. of A. SOLAGES -- read once and referred to the Commit-
         tee on Consumer Affairs and Protection
       AN ACT to amend the general business law, in  relation  to  implementing
         provisions to protect credit reports of certain consumers
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision (m) of section 380-a of  the  general  business
    2  law,  as  added by chapter 63 of the laws of 2006, is amended to read as
    3  follows:
    4    (m) The term "security freeze" or "freeze" means:
    5    1. a notice placed in the consumer credit report of or relating  to  a
    6  consumer,  at  the  request  of  such  consumer  and  subject to certain
    7  exceptions, that prohibits the consumer  credit  reporting  agency  from
    8  releasing the consumer credit report, the contents of such report or the
    9  credit score of such consumer[.];
   10    2. IF A CONSUMER CREDIT REPORTING AGENCY DOES NOT HAVE A FILE PERTAIN-
   11  ING TO A PROTECTED CONSUMER, A RESTRICTION THAT:
   12    A. IS PLACED ON THE PROTECTED CONSUMER'S RECORD IN ACCORDANCE WITH THE
   13  PROVISIONS OF THIS SECTION; AND
   14    B.  PROHIBITS  THE  CONSUMER CREDIT REPORTING AGENCY FROM RELEASING TO
   15  PROTECTED CONSUMER'S RECORD EXCEPT AS PROVIDED IN SECTION THREE  HUNDRED
   16  EIGHTY-V OF THIS ARTICLE; OR
   17    3.  IF A CONSUMER CREDIT REPORTING AGENCY HAS A FILE PERTAINING TO THE
   18  PROTECTED CONSUMER, A RESTRICTION THAT:
   19    A. IS PLACED ON THE PROTECTED CONSUMER'S CONSUMER REPORT IN ACCORDANCE
   20  WITH SECTION THREE HUNDRED EIGHTY-V OF THIS ARTICLE; AND
   21    B. PROHIBITS THE CONSUMER CREDIT REPORTING AGENCY FROM  RELEASING  THE
   22  PROTECTED  CONSUMER'S  CONSUMER CREDIT REPORT OR ANY INFORMATION DERIVED
   23  FROM THE PROTECTED CONSUMER'S CONSUMER CREDIT REPORT EXCEPT AS  PROVIDED
   24  IN SECTION THREE HUNDRED EIGHTY-V OF THIS ARTICLE.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05545-01-5
       A. 6250                             2
    1    S  2.  Section  380-a of the general business law is amended by adding
    2  five new subdivisions (u), (v), (w), (x) and (y) to read as follows:
    3    (U) THE TERM "PROTECTED CONSUMER" MEANS AN INDIVIDUAL WHO IS:
    4    1. UNDER THE AGE OF SIXTEEN YEARS AT THE TIME A REQUEST FOR THE PLACE-
    5  MENT OF A SECURITY FREEZE IS MADE; OR
    6    2.  AN  INCAPACITATED PERSON OR A PROTECTED PERSON FOR WHOM A GUARDIAN
    7  OR CONSERVATOR HAS BEEN APPOINTED.
    8    (V) THE TERM "RECORD" MEANS A COMPILATION OF INFORMATION THAT:
    9    1. IDENTIFIES A PROTECTED CONSUMER;
   10    2. IS CREATED BY A CONSUMER CREDIT REPORTING  AGENCY  SOLELY  FOR  THE
   11  PURPOSE  OF  COMPLYING WITH SECTION THREE HUNDRED EIGHTY-V OF THIS ARTI-
   12  CLE; AND
   13    3. MAY NOT BE CREATED OR USED TO  CONSIDER  THE  PROTECTED  CONSUMER'S
   14  CREDIT  WORTHINESS, CREDIT STANDING, CREDIT CAPACITY, CHARACTER, GENERAL
   15  REPUTATION, PERSONAL CHARACTERISTICS, OR MODE OF LIVING.
   16    (W) THE TERM "REPRESENTATIVE" MEANS A PERSON WHO PROVIDES TO A CONSUM-
   17  ER CREDIT REPORTING AGENCY SUFFICIENT  PROOF  OF  AUTHORITY  TO  ACT  ON
   18  BEHALF  OF  A  PROTECTED  CONSUMER;  INCLUDES,  BUT IS NOT LIMITED TO, A
   19  PARENT OR LEGAL GUARDIAN.
   20    (X) THE TERM "SUFFICIENT PROOF OF AUTHORITY" MEANS DOCUMENTATION  THAT
   21  SHOWS  A  REPRESENTATIVE  HAS  AUTHORITY TO ACT ON BEHALF OF A PROTECTED
   22  CONSUMER; INCLUDES:
   23    1. AN ORDER ISSUED BY A COURT OF LAW; OR
   24    2. A LAWFULLY EXECUTIVE AND VALID POWER OF ATTORNEY; OR
   25    3. A WRITTEN, NOTARIZED STATEMENT  SIGNED  BY  A  REPRESENTATIVE  THAT
   26  EXPRESSLY DESCRIBES THE AUTHORITY OF THE REPRESENTATIVE TO ACT ON BEHALF
   27  OF A PROTECTED CONSUMER.
   28    (Y) THE TERM "SUFFICIENT PROOF OF IDENTIFICATION" MEANS INFORMATION OR
   29  DOCUMENTATION  THAT  IDENTIFIES A PROTECTED CONSUMER OR A REPRESENTATIVE
   30  OF A PROTECTED CONSUMER; INCLUDES:
   31    1. A SOCIAL SECURITY NUMBER OR A COPY OF A SOCIAL SECURITY CARD ISSUED
   32  BY THE SOCIAL SECURITY ADMINISTRATION;
   33    2. A CERTIFIED OR OFFICIAL COPY OF A BIRTH CERTIFICATE ISSUED  BY  THE
   34  ENTITY AUTHORIZED TO ISSUE THE BIRTH CERTIFICATE; OR
   35    3.  A COPY OF A DRIVER'S LICENSE, AN IDENTIFICATION CARD ISSUED BY THE
   36  DEPARTMENT OF MOTOR VEHICLES, OR ANY OTHER GOVERNMENT-ISSUED IDENTIFICA-
   37  TION.
   38    S 3. Section 380-v of the general business law, as relettered by chap-
   39  ter 441 of the laws of 2014, is  relettered  section  380-w  and  a  new
   40  section 380-v is added to read as follows:
   41    S  380-V.  PROTECTED  CONSUMER CREDIT REPORTING. (A) THIS SECTION DOES
   42  NOT APPLY TO THE USE OF A PROTECTED CONSUMER'S CONSUMER CREDIT REPORT OR
   43  RECORD BY:
   44    1. A  PERSON  ADMINISTERING  A  CREDIT  FILE  MONITORING  SUBSCRIPTION
   45  SERVICE TO WHICH:
   46    (I) THE PROTECTED CONSUMER HAS SUBSCRIBED; OR
   47    (II)  THE  REPRESENTATIVE  OF THE PROTECTED CONSUMER HAS SUBSCRIBED ON
   48  BEHALF OF THE PROTECTED CONSUMER;
   49    2. A PERSON PROVIDING THE PROTECTED CONSUMER OR THE PROTECTED  CONSUM-
   50  ER'S  REPRESENTATIVE  WITH  A  COPY OF THE PROTECTED CONSUMER'S CONSUMER
   51  CREDIT REPORT ON REQUEST OF THE  PROTECTED  CONSUMER  OR  THE  PROTECTED
   52  CONSUMER'S REPRESENTATIVE; OR
   53    3. AN ENTITY LISTED IN PARAGRAPH ONE, TWO, THREE, FOUR, FIVE OR SIX OF
   54  SUBDIVISION (M) OF SECTION THREE HUNDRED EIGHTY-T OF THIS ARTICLE.
   55    (B) 1. A CONSUMER REPORTING AGENCY SHALL PLACE A SECURITY FREEZE FOR A
   56  PROTECTED CONSUMER IF:
       A. 6250                             3
    1    (I)  THE  CONSUMER CREDIT REPORTING AGENCY RECEIVES A REQUEST FROM THE
    2  PROTECTED CONSUMER'S REPRESENTATIVE FOR THE PLACEMENT  OF  THE  SECURITY
    3  FREEZE UNDER THIS SECTION; AND
    4    (II) THE PROTECTED CONSUMER'S REPRESENTATIVE:
    5    (A) SUBMITS THE REQUEST TO THE CONSUMER CREDIT REPORTING AGENCY AT THE
    6  ADDRESS  OR  OTHER  POINT  OF  CONTACT AND IN THE MANNER SPECIFIED UNDER
    7  SUBDIVISION (A) OF THIS SECTION;
    8    (B) PROVIDES TO THE CONSUMER CREDIT REPORTING AGENCY SUFFICIENT  PROOF
    9  OF IDENTIFICATION OF THE CONSUMER AND THE REPRESENTATIVE;
   10    (C)  PROVIDES TO THE CONSUMER CREDIT REPORTING AGENCY SUFFICIENT PROOF
   11  OF AUTHORITY TO ACT ON BEHALF OF THE PROTECTED CONSUMER; AND
   12    (D) PAYS TO THE CONSUMER CREDIT REPORTING AGENCY A FEE AS PROVIDED  IN
   13  SUBDIVISION (H) OF THIS SECTION.
   14    2. IF A CONSUMER CREDIT REPORTING AGENCY DOES NOT HAVE A FILE PERTAIN-
   15  ING  TO  A  PROTECTED CONSUMER WHEN THE CONSUMER CREDIT REPORTING AGENCY
   16  RECEIVES A REQUEST UNDER PARAGRAPH ONE OF THIS SUBDIVISION, THE CONSUMER
   17  CREDIT REPORTING AGENCY SHALL CREATE A RECORD FOR THE PROTECTED  CONSUM-
   18  ER.
   19    (C)  1.  WITHIN  THIRTY  DAYS AFTER RECEIVING A REQUEST THAT MEETS THE
   20  REQUIREMENTS OF PARAGRAPH ONE OF SUBDIVISION  (B)  OF  THIS  SECTION,  A
   21  CONSUMER  CREDIT  REPORTING AGENCY SHALL PLACE A SECURITY FREEZE FOR THE
   22  PROTECTED CONSUMER.
   23    2. THE CONSUMER CREDIT REPORTING AGENCY SHALL SEND A WRITTEN CONFIRMA-
   24  TION OF THE PLACEMENT OF THE SECURITY FREEZE TO A  PROTECTED  CUSTOMER'S
   25  REPRESENTATIVE WITHIN FIVE BUSINESS DAYS OF PLACING SUCH FREEZE.
   26    (D)  UNLESS  A  SECURITY FREEZE FOR A PROTECTED CONSUMER IS REMOVED IN
   27  ACCORDANCE WITH SUBDIVISION (F) OR (I) OF THIS SECTION, A CONSUMER CRED-
   28  IT REPORTING AGENCY MAY NOT RELEASE THE  PROTECTED  CONSUMER'S  CONSUMER
   29  CREDIT  REPORT,  ANY  INFORMATION  DERIVED FROM THE PROTECTED CONSUMER'S
   30  CONSUMER CREDIT REPORT, OR ANY RECORD CREATED FOR THE PROTECTED  CONSUM-
   31  ER.
   32    (E)  A  SECURITY FREEZE FOR A PROTECTED CONSUMER PLACED UNDER SUBDIVI-
   33  SION (C) OF THIS SECTION SHALL REMAIN IN EFFECT UNTIL:
   34    1. THE PROTECTED CONSUMER OR THE PROTECTED  CONSUMER'S  REPRESENTATIVE
   35  REQUESTS  THE  CONSUMER  CREDIT  REPORTING AGENCY TO REMOVE THE SECURITY
   36  FREEZE IN ACCORDANCE WITH SUBDIVISION (F) OF THIS SECTION; OR
   37    2. THE SECURITY FREEZE IS REMOVED IN ACCORDANCE WITH  SUBDIVISION  (I)
   38  OF THIS SECTION.
   39    (F)  IF  A PROTECTED CONSUMER OR A PROTECTED CONSUMER'S REPRESENTATIVE
   40  WISHES TO REMOVE A SECURITY  FREEZE  FOR  THE  PROTECTED  CONSUMER,  THE
   41  PROTECTED CONSUMER OR THE PROTECTED CONSUMER'S REPRESENTATIVE SHALL:
   42    1.  SUBMIT  A  REQUEST  FOR  THE REMOVAL OF THE SECURITY FREEZE TO THE
   43  CONSUMER CREDIT REPORTING AGENCY  AT  THE  ADDRESS  OR  OTHER  POINT  OF
   44  CONTACT  AND  IN  THE  MANNER SPECIFIED BY THE CONSUMER CREDIT REPORTING
   45  AGENCY;
   46    2. PROVIDE TO THE CONSUMER CREDIT REPORTING AGENCY:
   47    (I) IN THE CASE OF A REQUEST BY THE PROTECTED CONSUMER:
   48    (A) PROOF THAT THE SUFFICIENT PROOF OF  AUTHORITY  FOR  THE  PROTECTED
   49  CONSUMER'S  REPRESENTATIVE TO ACT ON BEHALF OF THE PROTECTED CONSUMER IS
   50  NO LONGER VALID; AND
   51    (B) SUFFICIENT PROOF OF IDENTIFICATION OF THE PROTECTED CONSUMER; OR
   52    (II) IN THE CASE OF A REQUEST BY THE  REPRESENTATIVE  OF  A  PROTECTED
   53  CONSUMER:
   54    (A)  SUFFICIENT  PROOF OF IDENTIFICATION OF THE PROTECTED CONSUMER AND
   55  THE REPRESENTATIVE; AND
       A. 6250                             4
    1    (B) SUFFICIENT PROOF OF AUTHORITY TO ACT ON BEHALF  OF  THE  PROTECTED
    2  CONSUMER; AND
    3    (C)  PAY  TO THE CONSUMER CREDIT REPORTING AGENCY A FEE AS PROVIDED IN
    4  SUBDIVISION (H) OF THIS SECTION.
    5    (G) WITHIN THIRTY DAYS  AFTER  RECEIVING  A  REQUEST  THAT  MEETS  THE
    6  REQUIREMENTS  OF  SUBDIVISION  (F)  OF THIS SECTION, THE CONSUMER CREDIT
    7  REPORTING AGENCY SHALL REMOVE THE  SECURITY  FREEZE  FOR  THE  PROTECTED
    8  CONSUMER.
    9    (H)  1.  EXCEPT  AS  PROVIDED  IN PARAGRAPH TWO OF THIS SUBDIVISION, A
   10  CONSUMER CREDIT REPORTING AGENCY MAY NOT CHARGE A FEE  FOR  ANY  SERVICE
   11  PERFORMED UNDER THIS SECTION.
   12    2. A CONSUMER CREDIT REPORTING AGENCY MAY CHARGE A REASONABLE FEE, NOT
   13  EXCEEDING  FIVE  DOLLARS,  FOR  EACH  PLACEMENT OR REMOVAL OF A SECURITY
   14  FREEZE FOR A PROTECTED CONSUMER.
   15    3. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH TWO  OF  THIS  SUBDIVI-
   16  SION,  A  CONSUMER  CREDIT REPORTING AGENCY MAY NOT CHARGE ANY FEE UNDER
   17  THIS SECTION IF THE PROTECTED CONSUMER'S REPRESENTATIVE:
   18    (I) HAS OBTAINED A  REPORT  OF  ALLEGED  IDENTITY  FRAUD  AGAINST  THE
   19  PROTECTED CONSUMER; AND
   20    (II)  PROVIDES  A  COPY OF THE REPORT TO THE CONSUMER CREDIT REPORTING
   21  AGENCY.
   22    (I) A CONSUMER CREDIT REPORTING AGENCY MAY REMOVE  A  SECURITY  FREEZE
   23  FOR  A  PROTECTED CONSUMER OR DELETE A RECORD OF A PROTECTED CONSUMER IF
   24  THE SECURITY FREEZE WAS PLACED OR THE RECORD  WAS  CREATED  BASED  ON  A
   25  MATERIAL  MISREPRESENTATION  OF  FACT  BY  THE PROTECTED CONSUMER OR THE
   26  PROTECTED CONSUMER'S REPRESENTATIVE.
   27    (J) WHEN A CONSUMER CREDIT REPORTING  AGENCY  ERRONEOUSLY  RELEASES  A
   28  PROTECTED CONSUMER'S CONSUMER CREDIT REPORT SUBJECT TO A SECURITY FREEZE
   29  OR ANY INFORMATION CONTAINED IN SUCH CONSUMER CREDIT REPORT, THE CONSUM-
   30  ER  CREDIT  REPORTING  AGENCY  SHALL  SEND  WRITTEN  NOTIFICATION TO THE
   31  AFFECTED PROTECTED CONSUMER'S REPRESENTATIVE WITHIN THREE BUSINESS  DAYS
   32  FOLLOWING  DISCOVERY  OR  NOTIFICATION  OF  SUCH ERRONEOUS RELEASE. SUCH
   33  NOTIFICATION SHALL ALSO INFORM THE PROTECTED CONSUMER OF THE  NATURE  OF
   34  THE  INFORMATION  RELEASED  AND IDENTIFY AND PROVIDE CONTACT INFORMATION
   35  FOR THE RECIPIENT OF SUCH INFORMATION OR CONSUMER CREDIT REPORT.
   36    (K) WHENEVER THERE SHALL BE A VIOLATION OF THIS  SECTION,  APPLICATION
   37  MAY  BE  MADE  BY  THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE
   38  STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL
   39  PROCEEDING TO ISSUE AN INJUNCTION, AND UPON NOTICE TO THE  DEFENDANT  OF
   40  NOT  LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH
   41  VIOLATIONS; AND IF IT SHALL APPEAR TO THE SATISFACTION OF THE  COURT  OR
   42  JUSTICE  THAT  THE  DEFENDANT  HAS,  IN  FACT, VIOLATED THIS SECTION, AN
   43  INJUNCTION MAY BE  ISSUED  BY  SUCH  COURT  OR  JUSTICE,  ENJOINING  AND
   44  RESTRAINING  ANY  FURTHER  VIOLATION,  WITHOUT  REQUIRING PROOF THAT ANY
   45  PERSON HAS, IN FACT, BEEN  INJURED  OR  DAMAGED  THEREBY.  IN  ANY  SUCH
   46  PROCEEDING,  THE  COURT  MAY  MAKE ALLOWANCES TO THE ATTORNEY GENERAL AS
   47  PROVIDED IN PARAGRAPH SIX OF SUBDIVISION  (A)  OF  SECTION  EIGHTY-THREE
   48  HUNDRED  THREE  OF THE CIVIL PRACTICE LAW AND RULES, AND DIRECT RESTITU-
   49  TION. WHENEVER THE COURT  SHALL  DETERMINE  THAT  A  VIOLATION  OF  THIS
   50  SECTION  HAS  OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF NOT MORE
   51  THAN FIVE THOUSAND DOLLARS FOR EACH VIOLATION. IN  CONNECTION  WITH  ANY
   52  SUCH  PROPOSED  APPLICATION,  THE ATTORNEY GENERAL IS AUTHORIZED TO TAKE
   53  PROOF AND MAKE A DETERMINATION  OF  THE  RELEVANT  FACTS  AND  TO  ISSUE
   54  SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
   55    S  4.  This  act shall take effect on the ninetieth day after it shall
   56  have become a law.