07 LC
36 0389
House
Bill 38
By:
Representatives Teilhet of the
40th,
Benton of the
31st,
Reese of the
98th,
Barnard of the
166th,
Manning of the
32nd,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating
to selling and other trade practices, so as to provide that a person may place a
security freeze on his or her credit report by notifying the credit reporting
agencies; to define certain terms; to provide for procedures; to provide for a
temporary or permanent lifting of such freeze; to provide for related matters;
to provide for an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
1 of Title 10 of the Official Code of Georgia Annotated, relating to selling and
other trade practices, is amended by inserting a new Code Section 10-1-913 as
follows:
"10-1-913.
(a)
As used in this Code section, the term:
(1)
'Consumer reporting agency' means any person that, for monetary fees, dues, or
on a cooperative nonprofit basis, regularly engages in whole or in part in the
practice of assembling or evaluating consumer credit information or other
information on consumers for the purpose of furnishing consumer reports to third
parties.
(2)
'Credit information' shall mean any credit related information derived from a
credit report or found on a credit report utilized by an insurer or used by an
insurer to calculate an insurance score for personal insurance. Information
that is not credit related shall not be considered credit information,
regardless of whether it is contained in a credit report or in an application or
is used to calculate an insurance score.
(3)
'Credit report' shall mean any written, oral, or other communication of
information by a consumer reporting agency bearing on a consumer´s credit
worthiness, credit standing, or credit capacity which is used or expected to be
used or collected in whole or in part for the purpose of serving as a factor to
determine personal insurance premiums, eligibility for coverage, or tier
placement.
(4)
'Security freeze' means a notice placed in a consumer´s credit report that
prohibits the consumer credit reporting agency from releasing the
consumer´s credit report or any information from it without the express
authorization of the consumer.
(b)
A consumer may elect to place a security freeze on his or her credit report by
making a request in writing by certified mail to a consumer credit reporting
agency. A consumer credit reporting agency shall place a security freeze on a
consumer´s credit report no later than five business days after receiving a
written request from the consumer. The consumer credit reporting agency shall
send a written confirmation of the security freeze to the consumer within ten
business days and shall provide the consumer with a unique personal
identification number or password to be used by the consumer when providing
authorization for the release of his or her credit for a specific party or
period of time.
(c)
If a security freeze is in place, a consumer reporting agency shall not release
credit information from a consumer´s credit report to a third party without
prior express authorization from the consumer; provided, however, that a
consumer credit reporting agency may advise a third party that a security freeze
is in effect with respect to the consumer´s credit report.
(d)
If the consumer wishes to allow his or her credit report to be accessed for a
specific party or period of time while a freeze is in place, he or she shall
contact the consumer credit reporting agency, request that the freeze be
temporarily lifted, and provide the following:
(1)
Proper identification;
(2)
The unique personal identification number or password provided by the credit
reporting agency pursuant to subsection (b) of this Code section;
and
(3)
The proper information regarding the third party who is to receive the credit
report or the time period for which the report shall be available to users of
the credit report.
(e)
A consumer credit reporting agency that receives a request from a consumer to
temporarily lift a freeze on a credit report pursuant to subsection (d) of this
Code section shall comply with the request no later than three business days
after receiving the request.
(f)
A consumer credit reporting agency may develop procedures involving the use of
telephone, fax, the Internet, or other electronic media to receive and process a
request from a consumer to temporarily lift a freeze on a credit report pursuant
to subsection (d) of this Code section in an expedited manner.
(g)
A consumer credit reporting agency shall remove or temporarily lift a freeze
placed on a consumer´s credit report only in the following
cases:
(1)
Upon consumer request, pursuant to subsection (d) of this Code section;
or
(2)
If the consumer´s credit report was frozen due to a material
misrepresentation of fact by the consumer. If a consumer credit reporting
agency intends to remove a freeze upon a consumer´s credit report pursuant
to this paragraph, the consumer credit reporting agency shall notify the
consumer in writing prior to removing the freeze on the consumer´s credit
report.
(h)
If a third party requests access to a consumer credit 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 his or her credit report
to be accessed for that specific party or period of time, the third party may
treat the application as incomplete.
(i)
If a consumer requests a security freeze, the consumer credit reporting agency
shall disclose the process of placing and temporarily lifting a freeze and the
process for allowing access to information from the consumer´s credit
report for a specific party or period of time while the freeze is in
place.
(j)
A security freeze shall remain in place until the consumer requests that the
security freeze be removed. A consumer credit reporting agency shall remove a
security freeze within three business days of receiving a request for removal
from the consumer who provides both of the following:
(1)
Proper identification; and
(2)
The unique personal identification number or password provided by the credit
reporting agency pursuant to subsection (d) of this Code section.
(k)
A consumer reporting agency shall not charge a fee to a consumer for any freeze,
removal of the freeze, or temporary lift of the freeze."
SECTION
2.
This
Act shall become effective on July 1, 2007.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.