STATE OF NEW YORK
________________________________________________________________________
6682--B
Cal. No. 245
IN SENATE
February 26, 2014
___________
Introduced by Sens. ZELDIN, BONACIC, DeFRANCISCO, LARKIN, MARCHIONE,
MARTINS, RANZENHOFER -- read twice and ordered printed, and when
printed to be committed to the Committee on Consumer Protection --
reported favorably from said committee, ordered to first and second
report, ordered to a third reading, amended and ordered reprinted,
retaining its place in the order of third reading -- again amended and
ordered reprinted, retaining its place in the order of third reading
AN ACT to amend the general business law, in relation to credit record
freezes and protected minors
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 380-a of the general business law is amended by
2 adding six new subdivisions (o), (p), (q), (r), (s) and (t) to read as
3 follows:
4 (o) The term "protected consumer" means an individual who is under the
5 age of sixteen years at the time a request for the placement of a secu-
6 rity freeze is made.
7 (p) The term "record" means a compilation of information that (1)
8 identifies a protected consumer; (2) is created by a consumer credit
9 reporting agency solely for the purpose of complying with section three
10 hundred eighty-u of this article; and (3) may not be created or used to
11 consider the protected consumer's credit worthiness, credit standing,
12 credit capacity, character, general reputation, personal character-
13 istics, or mode of living for any purpose listed in this article.
14 (q) The term "representative" means a person who provides to a consum-
15 er credit reporting agency sufficient proof of authority to act on
16 behalf of a protected consumer.
17 (r) The term "security freeze for a protected person" means (1) if a
18 consumer credit reporting agency does not have a file pertaining to a
19 protected consumer, a restriction that: (i) is placed on the protected
20 consumer's record in accordance with this section; and (ii) prohibits
21 the consumer credit reporting agency from releasing the protected
22 consumer's record except as provided in this section; or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13240-14-4
S. 6682--B 2
1 (2) if a consumer credit reporting agency has a file pertaining to the
2 protected consumer, a restriction that (i) is placed on the protected
3 consumer's consumer credit report in accordance with this section; and
4 (ii) prohibits the consumer credit reporting agency from releasing the
5 protected consumer's consumer credit report or any information derived
6 from the protected consumer's consumer credit report except as provided
7 in this section.
8 (s) The term "sufficient proof of authority" means documentation that
9 shows a representative has authority to act on behalf of a protected
10 consumer. "Sufficient proof of authority" shall include, but not be
11 limited to, (1) an order issued by a court of law; or (2) a written,
12 notarized statement signed by a representative that expressly describes
13 the authority of the representative to act on behalf of a protected
14 consumer.
15 (t) The term "sufficient proof of identification" means information or
16 documentation that identifies a protected consumer or a representative
17 of a protected consumer. "Sufficient proof of identification" shall
18 include, but not be limited to, (1) a social security number or a copy
19 of a social security card issued by the social security administration;
20 (2) a certified or official copy of a birth certificate; or (3) a copy
21 of a driver's license, an identification card issued by the department
22 of motor vehicles, or any other government-issued photo identification.
23 § 2. Section 380-u of the general business law, as relettered by chap-
24 ter 63 of the laws of 2006, is relettered section 380-v and a new
25 section 380-u is added to read as follows:
26 § 380-u. Security record freeze for protected minors. (a) A consumer
27 credit reporting agency shall place a security freeze for a protected
28 consumer if:
29 (1) The consumer credit reporting agency receives a request from the
30 protected consumer's representative for the placement of the security
31 freeze under this section; and
32 (2) The protected consumer's representative (i) submits the request to
33 the consumer credit reporting agency at the address or other point of
34 contact and in the manner specified by the consumer credit reporting
35 agency; (ii) provides to the consumer credit reporting agency sufficient
36 proof of identification of the protected consumer and the represen-
37 tative; (iii) provides to the consumer credit reporting agency suffi-
38 cient proof of authority to act on behalf of the protected consumer; and
39 (iv) pays to the consumer credit reporting agency a fee, if any, as
40 provided in this section.
41 (b) If a consumer credit reporting agency does not have a file
42 pertaining to a protected consumer when the consumer credit reporting
43 agency receives a request under subdivision (a) of this section, the
44 consumer credit reporting agency shall create a record for the protected
45 consumer.
46 (c) Within thirty days after receiving a request that meets the
47 requirements of paragraph two of subdivision (a) of this section, a
48 consumer credit reporting agency shall place a security freeze for the
49 protected consumer on the record created for the protected consumer or
50 on the file pertaining to the protected consumer in the event that the
51 consumer reporting agency already has a file pertaining to the protected
52 consumer.
53 (d) Unless a security freeze for a protected person is removed in
54 accordance with this section, a consumer credit reporting agency may not
55 release the protected consumer's consumer credit report, any information
S. 6682--B 3
1 derived from the protected consumer's consumer report, or any record
2 created for the protected consumer.
3 (e) A security freeze for a protected consumer placed under this
4 section shall remain in effect until:
5 (1) The protected consumer or the protected consumer's representative
6 requests the consumer credit reporting agency to remove the security
7 freeze for a protected person in accordance with subdivision (f) of this
8 section; or
9 (2) The security freeze is removed in accordance with subdivision (i)
10 of this section.
11 (f) If a protected consumer or a protected consumer's representative
12 wishes to remove a security freeze for the protected consumer, the
13 protected consumer or the protected consumer's representative shall:
14 (1) Submit a request for the removal of the security freeze to the
15 consumer credit reporting agency at the address or other point of
16 contact and in the manner specified by the consumer credit reporting
17 agency;
18 (2) Provide to the consumer credit reporting agency: (i) in the case
19 of a request by the protected consumer: (A) proof that the sufficient
20 proof of authority for the protected consumer's representative to act on
21 behalf of the protected consumer is no longer valid or that the
22 protected consumer has attained the age of sixteen; and (B) sufficient
23 proof of identification of the protected consumer; or (ii) in the case
24 of a request by the representative of a protected consumer: (A) suffi-
25 cient proof of identification of the protected consumer and the repre-
26 sentative; and (B) sufficient proof of authority to act on behalf of the
27 protected consumer; and (C) pay to the consumer credit reporting agency
28 a fee, if any, as provided in subdivision (h) of this section.
29 (g) Within thirty days after receiving a request that meets the
30 requirements of subdivision (f) of this section, the consumer credit
31 reporting agency shall remove the security freeze for the protected
32 consumer.
33 (h)(1) A consumer credit reporting agency may charge a reasonable fee,
34 not exceeding fifteen dollars, for each placement or removal of a secu-
35 rity freeze for a protected consumer as provided for in subparagraph
36 (iv) of paragraph two of subdivision (a) or clause (C) of subparagraph
37 (ii) of paragraph two of subdivision (f) of this section. A consumer
38 credit reporting agency shall not charge a fee for any other service
39 performed under this section.
40 (2) Notwithstanding paragraph one of this subdivision, a consumer
41 credit reporting agency may not charge any fee under this section if;
42 (i) the protected consumer's representative: (A) has obtained a report
43 of alleged identity theft or fraud against the protected consumer; and
44 (B) provides a copy of the report to the consumer credit reporting agen-
45 cy; or (ii) the consumer credit reporting agency has a consumer credit
46 report pertaining to the protected consumer.
47 (i) A consumer credit reporting agency shall remove a security freeze
48 for a protected consumer, or delete a record of a protected consumer,
49 if the security freeze was placed or the record was created based on a
50 material misrepresentation of fact by the protected consumer or the
51 protected consumer's representative.
52 (j) This section does not apply to:
53 (1) A person administering a credit file monitoring subscription
54 service to which: (i) the protected consumer has subscribed; or (ii) the
55 representative of the protected consumer has subscribed on behalf of the
56 protected consumer;
S. 6682--B 4
1 (2) A person providing the protected consumer or the protected consum-
2 er's representative with a copy of the protected consumer's consumer
3 credit report upon the request of the protected consumer or the
4 protected consumer's representative;
5 (3)(i) An entity listed in paragraphs three through eight of subdivi-
6 sion (m) of section three hundred eighty-t of this article; (ii) an
7 entity listed in subdivision (p) of section three hundred eighty-t of
8 this article; or (iii) a consumer credit reporting agency's database or
9 file that consists of information concerning, and used for, one or more
10 of the following: criminal record information, fraud prevention or
11 detection, personal loss history information, and employment, tenant, or
12 background screening.
13 (k) Notwithstanding any other provision of law, the exclusive remedy
14 for a violation of this section shall be in an action commenced by the
15 attorney general.
16 § 3. This act shall take effect January 1, 2015.
