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Regular Session, 2014
HOUSE BILL NO. 844
BY REPRESENTATIVE PONTI
BANKS/BANKING: Provides relative to security freezes
AN ACT1
To enact R.S. 9:3571.3, relative to credit reports of protected persons; to provide for2
prohibitions on the release of credit information of protected persons; to provide for3
definitions; to provide for exceptions; to provide for damages; and to provide for4
related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 9:3571.3 is hereby enacted to read as follows: 7
ยง3571.3. Security freezes for protected persons.8
A. In this Section, the following words have the meanings indicated:9
(1) "Credit report" has the same meaning as in R.S. 9:3571.1.H(2).10
(2) "Credit reporting agency" has the same meaning as in R.S.11
9:3571.1.H(3).12
(3) "Protected person" means an individual who is either of the following:13
(a) Under the age of sixteen years at the time a request for the placement of14
a security freeze is made.15
(b) An interdicted person for whom a curator has been appointed, or an16
incapacitated person or a protected person for whom a guardian or conservator has17
been appointed.18
(4) "Protected person security freeze" means:19
(a) If a credit reporting agency does not have a credit report pertaining to a20
protected person, a restriction that:21 HB NO. 844
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(i) Is placed on the protected person's record in accordance with this Section;1
and2
(ii) Prohibits the credit reporting agency from releasing the protected3
person's record except as provided in this Section; or4
(iii) Prohibits the credit reporting agency from releasing the protected5
person's credit report or any information derived from the protected person's credit6
report except as provided in this Section.7
(5) "Record" means a compilation of information that meets all of the8
following:9
(a) Identifies a protected consumer.10
(b) Is created by a credit reporting agency solely for the purpose of11
complying with this Section.12
(c) May not be created or used to consider the protected consumer's credit13
worthiness, credit standing, credit capacity, character, general reputation, personal14
characteristics, or mode of living15
(6) "Representative" means a person who provides to a credit reporting16
agency sufficient proof of authority to act on behalf of a protected person.17
(7) "Sufficient proof of authority" means documentation that shows a18
representative has authority to act on behalf of a protected person. "Sufficient proof19
of authority" includes all of the following:20
(a) An order issued by a court of law.21
(b) A lawfully executed and valid Power of Attorney.22
(c) A written, notarized statement signed by a representative that expressly23
describes the authority of the representative to act on behalf of a protected person.24
(8) "Sufficient proof of identification" means information or documentation25
that identifies a protected person or a representative of a protected person. "Sufficient26
proof of identification" includes all of the following:27
(a) A social security number or a copy of a social security card issued by the28
Social Security Administration.29 HB NO. 844
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(b) A certified or official copy of a birth certificate issued by the entity1
authorized to issue the birth certificate.2
(c) A copy of a driver's license, an identification card issued by the office of3
motor vehicles, or any other government-issued identification.4
(d) A copy of a bill, including a bill for telephone, sewer, septic tank, water,5
electric, oil, or natural gas services, that shows a name and home address.6
B. This Section shall not apply to the use of a protected person's credit report7
or record by:8
(1) A person administering a credit report monitoring subscription service9
to which:10
(a) The protected person has subscribed.11
(b) The representative of the protected person has subscribed on behalf of12
the protected person.13
(2) A person providing the protected person or the protected person's14
representative with a copy of the protected person's credit report on request of the15
protected person or the protected person's representative.16
(3) An entity or purpose listed in R.S. 9:3571.1(L).17
C. A credit reporting agency shall place a protected person security freeze18
for a protected person if:19
(1) The credit reporting agency receives a request from the protected20
person's representative for the placement of the security freeze under this Section.21
(2) The protected person's representative:22
(a) Submits the request to the credit reporting agency at the address or other23
point of contact and in the manner specified by the credit reporting agency.24
(b) Provides to the credit reporting agency sufficient proof of identification25
of the protected person and the representative.26
(c) Provides to the credit reporting agency sufficient proof of authority to act27
on behalf of the protected person.28 HB NO. 844
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(d) Pays to the credit reporting agency a fee as provided in Subsection J of1
this Section.2
D. If a credit reporting agency does not have a credit report pertaining to a3
protected person when the credit reporting agency receives a request under4
Subsection C of this Section, the credit reporting agency shall create a record for the5
protected person.6
E. Within thirty days after receiving a request that meets the requirements7
of Subsection C of this Section, a credit reporting agency shall place a protected8
person security freeze.9
F. Unless a protected person security freeze is removed in accordance with10
Subsection H or K of this Section, a credit reporting agency may not release the11
protected person's credit report, any information derived from the protected person's12
credit report, or any record created for the protected person.13
G. A protected person security freeze placed pursuant to Subsection E of this14
Section shall remain in effect until either of the following:15
(1) The protected person or the protected person's representative requests the16
credit reporting agency to remove the protected person security freeze in accordance17
with Subsection H of this Section.18
(2) The protected person security freeze is removed in accordance with19
Subsection K of this Section.20
H. If a protected person or a protected person's representative wishes to21
remove a protected person security freeze, the protected person or the protected22
person's representative shall:23
(1) Submit a request for the removal of the protected person security freeze24
to the credit reporting agency at the address or other point of contact and in the25
manner specified by the credit reporting agency.26
(2) Provide to the credit reporting agency:27
(a) In the case of a request by the protected person:28 HB NO. 844
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(i) Proof that the sufficient proof of authority for the protected person's1
representative to act on behalf of the protected person is no longer valid, including2
proof that the protected person has reached the age of majority or is no longer3
incapacitated.4
(ii) Sufficient proof of identification of the protected person.5
(b) In the case of a request by the representative of a protected person.6
(i) Sufficient proof of identification of the protected person and the7
representative.8
(ii) Sufficient proof of authority to act on behalf of the protected person.9
(iii) Pay to the credit reporting agency a fee as provided in Subsection J of10
this Section.11
I. Within thirty days after receiving a request that meets the requirements of12
Subsection H of this Section, the credit reporting agency shall remove the protected13
person security freeze.14
J.(1) Except as provided in Paragraph (2) of this Subsection, a credit15
reporting agency may not charge a fee for any service performed pursuant to this16
Section.17
(2) A credit reporting agency may charge a reasonable fee, not exceeding ten18
dollars, for each placement or removal of a protected person security freeze.19
(3) Notwithstanding Paragraph (2) of this Subsection, a credit reporting20
agency may not charge any fee pursuant to this Section if:21
(a) The protected person's representative:22
(i) Has obtained a report of alleged identity fraud against the protected23
person. 24
(ii) Provides a copy of the report to the credit reporting agency.25
(b) A request for the placement or removal of a protected person security26
freeze is for a protected person who is under the age of sixteen years at the time of27
the request and the credit reporting agency has a credit report pertaining to the28
protected person.29 HB NO. 844
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K. A credit reporting agency may remove a protected person security freeze1
or delete a record of a protected person if the protected person security freeze was2
placed or the record was created based on a material misrepresentation of fact by the3
protected person or the protected person's representative.4
L. Any consumer damaged by an intentional or negligent violation of this5
section may bring an action for and shall be entitled to recovery of actual damages,6
plus reasonable attorney fees, court costs, and other reasonable costs of prosecution7
of the suit.8
Section 2. This Act shall take effect January 1, 2015.9
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Ponti HB No. 844
Abstract: Provides for security freezes for protected persons.
Proposed law provides for credit reporting agencies placing a security freezes on protected
persons' credit reports.
Proposed law provides for definitions.
Proposed law provides that "protected person" shall mean an individual who is: (a) under
the age of 16 years at the time a request for the placement of a security freeze is made; or
(b) an interdicted person for whom a curator has been appointed, or an incapacitated person
or a protected person for whom a guardian or conservator has been appointed.
Proposed law provides for mechanisms on who and how a request can be made and how it
can be removed.
Proposed law provides for damages for violation of proposed law.
Effective Jan. 1, 2015.
(Adds R.S. 9:3571.3)