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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 persons8
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 either of the following under19
Subparagraph (a) or (b):20 HB NO. 844
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(a) If a credit reporting agency does not have a credit report pertaining to a1
protected person, a restriction that meets each of the following criteria:2
(i) Is placed on the protected person's record in accordance with this Section.3
(ii) Prohibits the credit reporting agency from releasing the protected4
person's record except as provided in this Section.5
(b) If a credit reporting agency has a credit report pertaining to the protected6
person, a restriction that meets each of the following criteria:7
(i) Is placed on the protected person's credit report in accordance with this8
Section.9
(ii) Prohibits the credit reporting agency from releasing the protected10
person's credit report or any information derived from the protected person's credit11
report, except as provided in this Section.12
(5) "Record" means a compilation of information that meets all of the13
following:14
(a) Identifies a protected consumer.15
(b) Is created by a credit reporting agency solely for the purpose of16
complying with this Section.17
(c) May not be created or used to consider the protected consumer's credit18
worthiness, credit standing, credit capacity, character, general reputation, personal19
characteristics, or mode of living.20
(6) "Representative" means a person who provides to a credit reporting21
agency sufficient proof of authority to act on behalf of a protected person.22
(7) "Sufficient proof of authority" means documentation that shows a23
representative has authority to act on behalf of a protected person. "Sufficient proof24
of authority" includes any of the following:25
(a) An order issued by a court of law.26
(b) A lawfully executed and valid power of attorney.27
(c) A written, notarized statement signed by a representative that expressly28
describes the authority of the representative to act on behalf of a protected person.29 HB NO. 844
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(8) "Sufficient proof of identification" means information or documentation1
that identifies a protected person or a representative of a protected person. "Sufficient2
proof of identification" includes any of the following:3
(a) A social security number or a copy of a social security card issued by the4
Social Security Administration.5
(b) A certified or official copy of a birth certificate issued by the entity6
authorized to issue the birth certificate.7
(c) A copy of a driver's license, an identification card issued by the office of8
motor vehicles, or any other government-issued identification.9
(d) A copy of a bill, including a bill for telephone, sewer, septic tank, water,10
electric, oil, or natural gas services, that shows a name and home address.11
B. This Section shall not apply to the use of a protected person's credit report12
or record by:13
(1) A person administering a credit report monitoring subscription service14
to which:15
(a) The protected person has subscribed.16
(b) The representative of the protected person has subscribed on behalf of17
the protected person.18
(2) A person providing the protected person or the protected person's19
representative with a copy of the protected person's credit report on request of the20
protected person or the protected person's representative.21
(3) An entity or purpose listed in R.S. 9:3571.1(L).22
C. A credit reporting agency shall place a protected person security freeze23
for a protected person if:24
(1) The credit reporting agency receives a request from the protected25
person's representative for the placement of the security freeze under this Section.26
(2) The protected person's representative:27
(a) Submits the request to the credit reporting agency at the address or other28
point of contact and in the manner specified by the credit reporting agency.29 HB NO. 844
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(b) Provides to the credit reporting agency sufficient proof of identification1
of the protected person and the representative.2
(c) Provides to the credit reporting agency sufficient proof of authority to act3
on behalf of the protected person.4
(d) Pays to the credit reporting agency a fee as provided in Subsection J of5
this Section.6
D. If a credit reporting agency does not have a credit report pertaining to a7
protected person when the credit reporting agency receives a request under8
Subsection C of this Section, the credit reporting agency shall create a record for the9
protected person.10
E. Within thirty days after receiving a request that meets the requirements11
of Subsection C of this Section, a credit reporting agency shall place a protected12
person security freeze.13
F. Unless a protected person security freeze is removed in accordance with14
Subsection H or K of this Section, a credit reporting agency may not release the15
protected person's credit report, any information derived from the protected person's16
credit report, or any record created for the protected person.17
G. A protected person security freeze placed pursuant to Subsection E of this18
Section shall remain in effect until either of the following:19
(1) The protected person or the protected person's representative requests the20
credit reporting agency to remove the protected person security freeze in accordance21
with Subsection H of this Section.22
(2) The protected person security freeze is removed in accordance with23
Subsection K of this Section.24
H. If a protected person or a protected person's representative wishes to25
remove a protected person security freeze, the protected person or the protected26
person's representative shall:27 HB NO. 844
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(1) Submit a request for the removal of the protected person security freeze1
to the credit reporting agency at the address or other point of contact and in the2
manner specified by the credit reporting agency.3
(2) Provide to the credit reporting agency:4
(a) In the case of a request by the protected person:5
(i) Proof that the sufficient proof of authority for the protected person's6
representative to act on behalf of the protected person is no longer valid, including7
proof that the protected person has reached the age of majority or is no longer8
incapacitated.9
(ii) Sufficient proof of identification of the protected person.10
(b) In the case of a request by the representative of a protected person:11
(i) Sufficient proof of identification of the protected person and the12
representative.13
(ii) Sufficient proof of authority to act on behalf of the protected person.14
(iii) Pay to the credit reporting agency a fee as provided in Subsection J of15
this Section.16
I. Within thirty days after receiving a request that meets the requirements of17
Subsection H of this Section, the credit reporting agency shall remove the protected18
person security freeze.19
J.(1) Except as provided in Paragraph (2) of this Subsection, a credit20
reporting agency may not charge a fee for any service performed pursuant to this21
Section.22
(2) A credit reporting agency may charge a reasonable fee, not exceeding ten23
dollars, for each placement or removal of a protected person security freeze.24
(3) Notwithstanding Paragraph (2) of this Subsection, a credit reporting25
agency may not charge any fee pursuant to this Section if:26
(a) The protected person's representative:27
(i) Has obtained a report of alleged identity fraud against the protected28
person.29 HB NO. 844
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(ii) Provides a copy of the report to the credit reporting agency.1
(b) A request for the placement or removal of a protected person security2
freeze is for a protected person who is under the age of sixteen years at the time of3
the request and the credit reporting agency has a credit report pertaining to the4
protected person.5
K. A credit reporting agency may remove a protected person security freeze6
or delete a record of a protected person if the protected person security freeze was7
placed or the record was created based on a material misrepresentation of fact by the8
protected person or the protected person's representative.9
L. Any consumer damaged by an intentional or negligent violation of this10
Section may bring an action for and shall be entitled to recovery of actual damages,11
plus reasonable attorney fees, court costs, and other reasonable costs of prosecution12
of the suit.13
Section 2. This Act shall take effect January 1, 2015.14
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 to place a security freeze on protected
persons' credit reports.
Proposed law provides that "credit report" has the same meaning as the definition of credit
report under present law, which is any written, oral, or other communication of any credit
information by a credit reporting agency, as defined in the federal Fair Credit Reporting Act,
which operates or maintains a database of consumer credit information bearing on a
consumer's credit worthiness, credit standing, or credit capacity. (R.S. 9:3571.1(H)(2))
Proposed law provides that "credit reporting agency" has the same meaning as the definition
of credit report agency under present law, which means any person who, 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, and who uses any
means or facility of interstate commerce for the purpose of preparing or furnishing consumer
reports. Further provides that "credit reporting agency" shall not mean a check acceptance
service which provides check approval and guarantees services to merchants. (R.S.
9:3571.1(H)(3)) HB NO. 844
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are additions.
Proposed law defines "protected person" as an individual who is:
(1) Under the age of 16 years at the time a request for the placement of a security freeze
is made.
(2) 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 that "protected person security freeze" is a restriction that may have
two different meanings:
(1)If a credit report agency does not have a credit report pertaining to a protected
person, a restriction that meets each of the following criteria:
(a)Is placed on the protected person's record in accordance with the provisions
of proposed law.
(b) Prohibits the credit reporting agency from releasing the protected person's
record, except as provided under proposed law.
(2)If a credit reporting agency has a credit report pertaining to the protected person, a
restriction that meets each of the following criteria:
(a) Is placed on the protected person's record in accordance with the provisions
of proposed law.
(b) Prohibits the credit reporting agency from releasing the protected person's
credit report or any information derived from the protected person's credit
report, except as provided under proposed law.
Proposed law defines "record" as a compilation of information that meets each of the
following criteria:
(1)Identifies a protected consumer.
(2)Is created by a credit reporting agency solely for the purpose of complying with
proposed law.
(3)May not be created or used to consider the protected consumer's credit worthiness,
credit standing, credit capacity, character, general reputation, personal
characteristics, or mode of living.
Proposed law defines "representative" as a person who provides to a credit reporting agency
sufficient proof of authority to act on behalf of a protected person.
Proposed law defines "sufficient proof of authority" as documentation that shows a
representative's authority to act on behalf of a protected person. Each of the following meets
the definition:
(1) An order issued by a court of law.
(2)A lawfully executed and valid power of attorney.
(3)A written, notarized statement signed by a representative that expressly describes the
authority of the representative to act on behalf of a protected person. HB NO. 844
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are additions.
Proposed law defines "sufficient proof of identification" as information or documentation
that identifies a protected person or a representative of a protected person. Each of the
following meets the definition:
(1)A social security number or a copy of a social security card issued by the Social
Security Administration.
(2)A certified or official copy of a birth certificate issued by the entity authorized to
issue the birth certificate.
(3)A copy of a driver's license, an identification card issued by the office of motor
vehicles, or any other government-issued identification.
(4)A copy of a bill, including a bill for telephone, sewer, septic tank, water, electric, oil,
or natural gas services, that shows a name and home address.
Proposed law does not apply to the use of a protected person's credit report or record by a
person administering a credit report monitoring subscription to which:
(1)The protected person has subscribed.
(2) The representative of the protected person has subscribed on behalf of the protected
person.
Proposed law does not apply to the use of a protected person's credit or record by a person
providing the protected person or the protected person's representative with a copy of the
protected person's credit report on request of the protected person or the protected person's
representative.
Proposed law does not apply to entities or purposes such as banks, fraud detection services,
and databases listed under present law. (R.S. 9:3571.1(L))
Proposed law provides that a credit reporting agency shall place a protected person security
freeze for a protected person if the credit reporting agency receives a request from the
protected person's representative for the placement of the security freeze pursuant to
proposed law. To place the security freeze, the protected person's representative shall:
(1)Submit the request to the credit reporting agency at the address or other point of
contact and in the manner specified by the credit reporting agency.
(2)Provide the credit reporting agency sufficient proof of identification of the protected
person and the representative.
(3)Provide the credit reporting agency sufficient proof of authority to act on behalf of
the protected person.
(4)Pay to the credit reporting agency a $10 fee as applicable under proposed law.
Proposed law provides that a credit reporting agency shall create a record for the protected
person if the credit reporting agency does not a have a credit report pertaining to a person
when the credit reporting agency receives a request pursuant to proposed law.
Proposed law further provides that a protected person security freeze shall be made within
30 days of receipt of the request. HB NO. 844
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are additions.
Unless a protected person security freeze is removed pursuant to proposed law, a credit
reporting agency may not release the protected person's credit report, any information
derived from the protected person's credit report, or any record created for the protected
person.
Proposed law provides that a protected person security freeze shall remain in effect until the
protected person or the protected person's representative requests the credit reporting agency
to remove the protected person security freeze pursuant to proposed law.
Proposed law provides if a protected person or a protected person's representative wishes to
remove a protected person security freeze, the protected person or representative shall:
(1)Submit a request of removal to the credit reporting agency at the address or other
point of contact and in the manner specified by the credit reporting agency and
provide the following to the credit reporting agency, in the case of the request made
by the protected person:
(a)Proof that the sufficient proof of authority for the protected person's
representative to act on behalf of the protected person is no longer valid,
including proof that the protected person has reached the age of majority or
is no longer incapacitated.
(b)Sufficient proof of identification of the protected person.
(2)In case the request is made by the representative of the protected person, the
representative shall provide:
(a)Sufficient proof of identification of the protected person and representative.
(b)Sufficient proof of authority to act on behalf of the protected person.
(c)Payment to the credit reporting agency a $10 fee as applicable under
proposed law.
Proposed law provides that a protected person security freeze shall be removed within 30
days of receipt of the request that meets the requirements of proposed law.
Proposed law provides that a credit reporting agency may charge a reasonable fee, not to
exceed $10, for each placement or removal of a protected person security freeze. Proposed
law prohibits any other fee applicable to the placement or removal of a protected person
security freeze; however, proposed law provides that a credit reporting agency may not
charge a fee if the protected person's representative:
(1)Has obtained a report of alleged identity fraud against the protected person.
(2)Provides a copy of the report to the credit reporting agency.
Proposed law provides that a credit reporting agency may not charge a fee if a request for
the placement or removal of a protected person security freeze is for a protected person aged
16 years or less at the time of the request and the credit reporting agency has a credit report
pertaining to the protected person.
Proposed law provides that a credit report agency may remove a protected person security
freeze or delete a record of a protected person, if the protected person security freeze was
placed or the record was created based on a material misrepresentation of fact by the
protected person or the protected person's representative. HB NO. 844
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Any consumer damaged by an intentional or negligent violation of proposed law may bring
an action for and shall be entitled to recovery of actual damages, in addition to reasonable
attorney fees, court costs, and other reasonable costs of prosecuting the suit.
Effective Jan. 1, 2015.
(Adds R.S. 9:3571.3)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Commerce to the original
bill.
1. Made technical changes to proposed law.
2. Clarified the criteria necessary to create a "protected person security freeze"
when the credit reporting agency does not have a credit report pertaining to a
protected person and when the credit reporting agency does have a credit report
pertaining to a protected person.
3. Specified that any provision listed under the definition of "sufficient proof of
authority" is an acceptable form of documentation to show a representative's
authority to act on behalf of a protected person.
4. Specified that any provision listed under the definition of "sufficient proof of
identification" is an acceptable form of information or documentation to identify
a protected person or representative.