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:
(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.
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. 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.
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.