Texas Senate Bill SB60

Texas 2013 - 83rd Regular

• Filed: 11/12/12

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

The implications of SB60 on state laws are notable, as it amends the Business and Commerce Code to introduce a new subchapter specifically dedicated to the security freeze for minors. This legislative change is expected to provide parents greater control over their children’s financial wellbeing and aligns with other consumer protection initiatives aimed at safeguarding vulnerable populations. Furthermore, the bill instructs consumer reporting agencies not to charge fees for the placement of these freezes in certain circumstances, thereby reducing barriers for families taking preventative measures against identity fraud.

Summary

Senate Bill 60 aims to enhance consumer protection for individuals under the age of 16 by establishing a legal framework that allows for the placement of a security freeze on their consumer files maintained by consumer reporting agencies. This measure is particularly significant given the increasing concern over identity theft among minors, providing parents or legal guardians a mechanism to prevent unauthorized access to a child’s sensitive financial information. By implementing this security freeze, consumers can restrict access to credit reports, effectively shielding their children from potential fraudulent activities.

Contention

While the bill enjoys support from various consumer advocacy groups who emphasize the need for protections against identity theft for minors, concerns may arise regarding the administrative burden placed on consumer reporting agencies. The requirements for documentation and the processes for placing and removing freezes may require additional oversight and resources. Additionally, there may be discussions around the enforcement mechanisms to guarantee compliance among consumer reporting agencies, and ensuring consistent application of the law across different jurisdictions within the state.