HB1700 (2018) Detail

(New Title) relative to the procedure for placing a security freeze on a consumer credit report.


CHAPTER 198

HB 1700 - FINAL VERSION

 

6Mar2018... 0441h

2018 SESSION

18-2410

05/03

 

HOUSE BILL 1700

 

AN ACT relative to the procedure for placing a security freeze on a consumer credit report.

 

SPONSORS: Rep. Williams, Hills. 4; Rep. Myler, Merr. 10; Rep. Ebel, Merr. 5; Rep. Luneau, Merr. 10; Sen. Feltes, Dist 15

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill revises the procedure for placing a security freeze on a consumer's credit report.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

6Mar2018... 0441h 18-2410

05/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to the procedure for placing a security freeze on a consumer credit report.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

198:1  Consumer Credit Reporting; Security Freeze.  RSA 359-B:23 and 359-B:24 are repealed and reenacted to read as follows:

359-B:23  Notice to Consumers.  At any time that a consumer is required to receive a summary of rights required under section 609 of the federal Fair Credit Reporting Act, 15 U.S.C. section 1681g, the following notice shall be included:

Notice to New Hampshire Consumers

Right to Security Freeze on Consumer Credit Report

You have a right to place a "security freeze" on your credit report pursuant to RSA 359-B:24.  Under New Hampshire law, what is commonly known as a credit report is referred to as a consumer report.

The security freeze will prohibit a consumer reporting agency from releasing any information in your consumer report without your express authorization.  A security freeze can be requested in writing by first-class mail, by telephone, or electronically.

The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent.  However, you should be aware that using a security freeze to take control over who gains access to the personal and financial information in your consumer report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding new loans, credit, mortgage, insurance, rental housing, employment, investment, license, cellular phone, utilities, digital signature, Internet credit card transactions, or other services, including an extension of credit at point of sale.

The freeze will be placed within 3 business days if you request it by mail, or within 24 hours if you request it by telephone or electronically.  When you place a security freeze on your credit report, within 3 business days, you will be sent a personal identification number or a password to use when you want to remove the security freeze, temporarily lift it, or lift it with respect to a particular third party.

A freeze does not apply when you have an existing account relationship and a copy of your report is requested by your existing creditor or its agents or affiliates for certain types of account review, collection, fraud control, or similar activities.

You should plan ahead and lift a freeze if you are actively seeking credit or services as a security freeze may slow your applications, as mentioned above.

You can remove a freeze, temporarily lift a freeze, or lift a freeze with respect to a particular third party by contacting the consumer reporting agency and providing all of the following:

(1)  Your personal identification number or password.

(2)  Proper identification to verify your identity.

(3)  Proper information regarding the period of time you want your report available to users of the consumer report, or the third party with respect to which you want to lift the freeze.

A consumer reporting agency that receives a request from you to temporarily lift a freeze or to lift a freeze with respect to a particular third party on a consumer report shall comply with the request no later than 3 business days after receiving the request by mail and no later than 15 minutes after receiving a request by telephone or electronically.  

A consumer reporting agency may not charge you a fee to freeze, remove a freeze, temporarily lift a freeze, or lift a freeze with respect to a particular third party.

You have a right to bring a civil action against someone who violates your rights under the credit reporting laws.  The action can be brought against a consumer reporting agency or a user of your credit report.

359-B:24  Security Freeze by Consumer Reporting Agency.

I.  A consumer may place a security freeze on the consumer's consumer report by making a request to a consumer reporting agency in accordance with this section.  A security freeze shall prohibit, subject to exceptions in RSA 359-B:26, the consumer 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, a consumer reporting agency may not release the consumer's credit report or information to a third party without prior express authorization from the consumer.  This section does not prevent a consumer reporting agency from advising a third party that a security freeze is in effect with respect to the consumer report, provided that the consumer reporting agency does not state or otherwise imply to the third party that the consumer's security freeze reflects a negative credit score, history, report, or rating.  A consumer reporting agency shall place a security freeze on a consumer report if the consumer requests a security freeze by any of the following methods:

(a)  First-class mail.

(b)  Telephone call.

(c)  Secure website or secure electronic mail connection.

II.  A consumer reporting agency shall place a security freeze on a consumer report no later than 3 business days after receiving a written request from the consumer by mail.  A consumer reporting agency that receives such a request electronically or by telephone shall comply with the request within 24 hours of receiving the request.

III.  The consumer reporting agency shall send a written confirmation of the security freeze to the consumer within 3 business days of placing the freeze and at the same time shall provide the consumer with a unique personal identification number or password, other than the consumer's social security number, to be used by the consumer when providing authorization for the release of the consumer's credit report for a specific period of time, or to a specific party, or for permanently lifting the freeze.

IV.  If the consumer wishes to allow the consumer report to be accessed for a specific period of time or by a specific party while a freeze is in place, the consumer shall contact the consumer reporting agency by mail, by telephone, or electronically, request that the freeze be lifted or lifted with respect to a specific party, and provide all of the following:

(a)  Proper identification.

(b)  The unique personal identification number or password provided by the consumer reporting agency pursuant to paragraph III.

(c)  The proper information regarding the third party who is authorized to receive the consumer report or the time period for which the report shall be available to users of the consumer report.

V.  A consumer reporting agency that receives a request by mail from a consumer to lift a freeze on a consumer report pursuant to paragraph IV shall comply with the request no later than 3 business days after receiving the request.  A consumer reporting agency that receives such a request electronically or by telephone shall comply with the request within 15 minutes of receiving the request.

VI.  A consumer reporting agency shall remove, temporarily lift, or lift with respect to a specific third party a freeze placed on a consumer report only in the following cases:

(a)  Upon the consumer's request, pursuant to paragraph IV or IX.

(b)  If the consumer's credit report was frozen due to a material misrepresentation of fact by the consumer.  If a consumer reporting agency intends to remove a freeze upon a consumer report pursuant to this section, the consumer reporting agency shall notify the consumer in writing prior to removing the freeze on the consumer report.

VII.  If a third party requests access to a consumer report on which a security freeze is in effect and this request is in connection with an application for credit or any other use and the consumer does not allow the consumer's credit report to be accessed for that specific period of time, the third party may treat the application as incomplete.

VIII.  If a consumer requests a security freeze pursuant to this section, the consumer reporting agency shall disclose to the consumer the process of placing and temporarily lifting a security freeze and the process for allowing access to information from the consumer report for a specific period of time or to a specific third party while the security freeze is in place.

IX.  A security freeze shall remain in place until the consumer requests that the security freeze be temporarily lifted for a specific period of time or to a specific third party or removed.  A consumer reporting agency shall remove a security freeze within 15 minutes of receiving an electronic request for removal from the consumer or within 3 business days of receiving a written or telephonic request for removal from the consumer, who provides all of the following:

(a)  Proper identification.

(b)  The unique personal identification number or password provided by the consumer reporting agency pursuant to paragraph III.

X.  A consumer reporting agency shall require proper identification of the person making a request to place or remove a security freeze.

XI.  If a security freeze is in place, a consumer reporting agency shall not change any of the following official information in a credit report without sending a written confirmation of the change to the consumer within 30 days of the change being posted to the consumer's file:  name, date of birth, social security number, and address.  Written confirmation is not required for technical modifications of a consumer's official information, including name and street abbreviations, complete spellings, or transposition of numbers or letters.  In the case of an address change, the written confirmation shall be sent to both the new address and the former address.

XII.  A consumer reporting agency shall not charge a fee to put a security freeze in place, remove a security freeze, or lift a security freeze for a specific period of time or to a specific third party.  Nor shall a consumer reporting agency charge a consumer to issue or replace a personal identification number.

198:2  Repeal.  RSA 359-B:25, relative to duties of consumer reporting agency if security freeze is in effect, is repealed.

198:3  Effective Date.  This act shall take effect January 1, 2019.

 

Approved: June 08, 2018

Effective Date: January 01, 2019

Links

HB1700 at GenCourtMobile

Action Dates

Date Body Type
Jan. 24, 2018 House Hearing
Feb. 21, 2018 House Exec Session
House Floor Vote
March 6, 2018 House Floor Vote
April 17, 2018 Senate Hearing
April 26, 2018 Senate Floor Vote

Bill Text Revisions

HB1700 Revision: 4114 Date: June 13, 2018, 10:17 a.m.
HB1700 Revision: 3587 Date: April 26, 2018, 10:14 a.m.
HB1700 Revision: 3188 Date: March 8, 2018, 11:34 a.m.
HB1700 Revision: 2348 Date: Nov. 15, 2017, 8:28 a.m.

Docket

Date Status
Jan. 3, 2018 Introduced 01/03/2018 and referred to Commerce and Consumer Affairs HJ 1 P. 20
Jan. 24, 2018 Public Hearing: 01/24/2018 10:30 AM LOB 302
Feb. 1, 2018 Subcommittee Work Session: 02/01/2018 09:00 AM LOB 302
Feb. 20, 2018 Subcommittee Work Session: 02/20/2018 09:00 AM LOB 305
Feb. 21, 2018 Executive Session: 02/21/2018 LOB 302
Committee Report: Ought to Pass with Amendment # 2018-0441h (NT) (Vote 17-0; CC)
March 6, 2018 Committee Report: Ought to Pass with Amendment # 2018-0441h (NT) for 03/06/2018 (Vote 17-0; CC) HC 9 P. 9
March 6, 2018 Amendment # 2018-0441h: AA VV 03/06/2018 HJ 6 P. 16
March 6, 2018 Ought to Pass with Amendment 0441h: MA VV 03/06/2018 HJ 6 P. 16
March 8, 2018 Introduced 03/08/2018 and Referred to Commerce; SJ 7
April 17, 2018 Hearing: 04/17/2018, Room 100, SH, 02:00 pm; SC 16
April 26, 2018 Committee Report: Ought to Pass, 04/26/2018; SC 18
April 26, 2018 Ought to Pass: MA, VV; OT3rdg; 04/26/2018; SJ 14
May 3, 2018 Enrolled (In recess 05/03/2018); SJ 17
May 3, 2018 Enrolled 05/03/2018
June 8, 2018 Signed by Governor Sununu 06/08/2018; Chapter 198; Eff. 1/1/2019