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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:19
(a) If a credit reporting agency does not have a credit report pertaining to a20
protected person, a restriction that meets each of the following criteria:21
(i) Is placed on the protected person's record in accordance with this Section.22 HB NO. 844
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(ii) Prohibits the credit reporting agency from releasing the protected1
person's record except as provided in this Section.2
(b) If a credit reporting agency has a credit report pertaining to the protected3
person, a restriction that meets each of the following criteria:4
(i) Is placed on the protected person's credit report in accordance with this5
Section.6
(ii) Prohibits the credit reporting agency from releasing the protected7
person's credit report or any information derived from the protected person's credit8
report, except as provided in this Section.9
(5) "Record" means a compilation of information that meets all of the10
following:11
(a) Identifies a protected consumer.12
(b) Is created by a credit reporting agency solely for the purpose of13
complying with this Section.14
(c) Is not created or used to consider the protected consumer's credit15
worthiness, credit standing, credit capacity, character, general reputation, personal16
characteristics, or mode of living.17
(6) "Representative" means a person who provides to a credit reporting18
agency sufficient proof of authority to act on behalf of a protected person.19
(7) "Sufficient proof of authority" means documentation that shows a20
representative has authority to act on behalf of a protected person. "Sufficient proof21
of authority" includes any of the following:22
(a) An order issued by a court of law.23
(b) A lawfully executed and valid power of attorney.24
(c) A written, notarized statement signed by a representative that expressly25
describes the authority of the representative to act on behalf of a protected person.26
(8) "Sufficient proof of identification" means information or documentation27
that identifies a protected person or a representative of a protected person. "Sufficient28
proof of identification" includes any of the following:29 HB NO. 844
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(a) A social security number or a copy of a social security card issued by the1
Social Security Administration.2
(b) A certified or official copy of a birth certificate issued by the entity3
authorized to issue the birth certificate.4
(c) A copy of a driver's license, an identification card issued by the office of5
motor vehicles, or any other government-issued identification.6
(d) A copy of a bill, including a bill for telephone, sewer, septic tank, water,7
electric, oil, or natural gas services, that shows a name and home address.8
B. This Section shall not apply to the use of a protected person's credit report9
or record by any of the following:10
(1) A person administering a credit report monitoring subscription service11
to which:12
(a) The protected person has subscribed.13
(b) The representative of the protected person has subscribed on behalf of14
the protected person.15
(2) A person providing the protected person or the protected person's16
representative with a copy of the protected person's credit report on request of the17
protected person or the protected person's representative.18
(3) An entity or person listed in R.S. 9:3571.1(L).19
C. A credit reporting agency shall place a protected person security freeze20
on the credit report of a protected person if the protected person's representative does21
all of the following to request a protected person security freeze pursuant to this22
Section:23
(1) Submits the request for a protected person security freeze to the credit24
reporting agency at the address or other point of contact in the manner specified by25
the credit reporting agency.26
(2) Provides to the credit reporting agency sufficient proof of identification27
of the protected person and the representative.28 HB NO. 844
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(3) Provides to the credit reporting agency sufficient proof of authority to act1
on behalf of the protected person.2
(4) Pays to the credit reporting agency a fee as provided in Subsection I of3
this Section.4
D. If a credit reporting agency does not have a credit report pertaining to a5
protected person when the credit reporting agency receives a request for a protected6
person security freeze under Subsection C of this Section, the credit reporting agency7
shall create a record for the protected person.8
E.(1) Within thirty days after receiving a request for a protected person9
security freeze that meets the requirements of Subsection C of this Section, a credit10
reporting agency shall place a protected person security freeze on the protected11
person's credit report.12
(2) A protected person security freeze placed pursuant to this Subsection13
shall remain in effect until either of the following:14
(a) The protected person or the protected person's representative requests the15
credit reporting agency to remove the protected person security freeze in accordance16
with Subsection G of this Section.17
(b) The protected person security freeze is removed in accordance with18
Subsection J of this Section.19
F. Unless a protected person security freeze is removed in accordance with20
Subsection G or J of this Section, a credit reporting agency may not release the21
protected person's credit report, any information derived from the protected person's22
credit report, or any record created for the protected person.23
G. If a protected person or a protected person's representative wishes to24
remove a protected person security freeze, the protected person or the protected25
person's representative shall submit a request for the removal of the protected person26
security freeze to the credit reporting agency at the address or other point of contact27
in the manner specified by the credit reporting agency.28 HB NO. 844
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(1) In the case of a request by the protected person, the protected person shall1
provide both of the following:2
(a) Documentaton that the sufficient proof of authority for the protected3
person's representative to act on behalf of the protected person is no longer valid,4
including documentation that the protected person has reached the age of sixteen5
years or is no longer incapacitated.6
(b) Sufficient proof of identification of the protected person.7
(2) In the case of a request by the representative of a protected person, the8
representative of the protected person shall provide all of the following:9
(a) Sufficient proof of identification of the protected person and the10
representative.11
(b) Sufficient proof of authority to act on behalf of the protected person.12
(c) Payment to the credit reporting agency a fee as provided in Subsection13
I of this Section.14
H. Within thirty days after receiving a request that meets the requirements15
of Subsection G of this Section, the credit reporting agency shall remove the16
protected person security freeze.17
I.(1) A credit reporting agency may charge a reasonable fee, not exceeding18
ten dollars, for each placement or removal of a protected person security freeze19
pursuant to this Section.20
(2) Notwithstanding Paragraph (1) of this Subsection, a credit reporting21
agency may not charge any fee pursuant to this Section if either of the following22
apply:23
(a) The protected person's representative does both of the following:24
(i) Obtains a report of alleged identity fraud against the protected person.25
(ii) Provides a copy of the report to the credit reporting agency.26
(b) A request for the placement or removal of a protected person security27
freeze is for a protected person who is under the age of sixteen years at the time of28 HB NO. 844
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the request and the credit reporting agency has a credit report pertaining to the1
protected person.2
J. A credit reporting agency may remove a protected person security freeze3
or delete a record of a protected person if the protected person security freeze was4
placed or the record was created based on a material misrepresentation of fact by the5
protected person or the protected person's representative.6
K. Any consumer damaged by an intentional or negligent violation of this7
Section may bring an action for and shall be entitled to recovery of actual damages,8
plus reasonable attorney fees, court costs, and other reasonable costs of prosecution9
of the suit.10
Section 2. This Act shall take effect January 1, 2015.11
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))
Proposed law defines "protected person" as an individual who is either of the following:
(1)Under the age of 16 years at the time a request for the placement of a security freeze
is made. HB NO. 844
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(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 all 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)Is not 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.
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. HB NO. 844
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(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 persons, 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 do all
of the following:
(1)Submit the request to the credit reporting agency at the address or other point of
contact 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.
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. HB NO. 844
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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 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)Documentation 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 documentation that the protected person has reached the age
of 16 years 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 all of the following:
(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. Proposed law further provides that a credit reporting agency may not charge
a fee if the protected person's representative does both of the following:
(1)Obtains 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.
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) HB NO. 844
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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 of a protected person.
House Floor Amendments to the engrossed bill.
1. Made technical changes.
2. Amended proposed law to specify that a protected person may remove a
protected person security freeze pursuant to the requirements of proposed law if
the protected person has reached the age of 16 years, rather than the age of
majority.