Texas House Bill HB1087

Texas 2013 - 83rd Regular

Caption

Relating to authorizing the placement of a security freeze on the consumer file or other record created or maintained by a consumer reporting agency regarding a person under 16 years of age.

Impact

With the implementation of HB 1087, the Business and Commerce Code will be amended to include strict definitions and regulations regarding the creation and maintenance of records pertaining to 'protected consumers'. The bill dictates that consumer reporting agencies must comply with requests from a representative of the minor to place a security freeze without charging fees, as long as appropriate documentation is provided. This move is intended to fortify safeguards against identity theft, thereby improving protection for vulnerable populations.

Summary

House Bill 1087 aims to enhance consumer protection for individuals under the age of 16 by authorizing the placement of a security freeze on their consumer files or records as maintained by consumer reporting agencies. The bill proposes specific provisions for defining 'protected consumers' and the process for establishing a security freeze to prevent unauthorized access to their credit information. This is particularly relevant given the increasing concerns regarding identity theft affecting minors, who often have no prior credit history, making them vulnerable to potential fraud.

Contention

Discussion around HB 1087 focused on the necessity and implications of implementing such measures. Supporters argue that the bill is critical in safeguarding against identity theft, particularly as reports indicate that minors are increasingly targeted in financial scams. However, some lawmakers express concerns regarding the administrative burden this may place on consumer reporting agencies and the potential for complications in removing the security freeze when necessary. The challenge remains in ensuring effective enforcement of the provisions without causing unnecessary obstacles for legitimate credit evaluations.