5418.EAMHFIIH2897.1ESB 5418H COMM AMDBy Committee on Financial Institutions & InsuranceADOPTED 04/11/2005 Strike everything after the enacting clause and insert thefollowing:NEW SECTION.Sec. A new section is added to chapter 19.182RCW to read as follows: (1) A victim of identity theft who has submitted a valid policereport to a consumer reporting agency may elect to place a securityfreeze on his or her report by making a request in writing by certifiedmail to a consumer reporting agency. "Security freeze" means a noticeplaced in a consumer's credit report, at the request of the consumerand subject to certain exceptions, that prohibits the consumerreporting agency from releasing the consumer's credit report or anyinformation from it without the express authorization of the consumer.If a security freeze is in place, information from a consumer's creditreport may not be released to a third party without prior expressauthorization from the consumer. This subsection does not prevent aconsumer reporting agency from advising a third party that a securityfreeze is in effect with respect to the consumer's credit report. (2) For purposes of this section and sections 2 through 5 of thisact, a "victim of identity theft" means: (a) A victim of identity theft as defined in RCW 9.35.020; or (b) A person who has been notified by an agency, person, orbusiness that owns or licenses computerized data of a breach in acomputerized data system which has resulted in the acquisition of thatperson's unencrypted personal information by an unauthorized person orentity. (3) A consumer reporting agency shall place a security freeze on aconsumer's credit report no later than five business daysafter receiving a written request from the consumer. (4) The consumer reporting agency shall send a written confirmationof the security freeze to the consumer within ten business days and 1 shall provide the consumer with a unique personal identification numberor password to be used by the consumer when providing authorization forthe release of his or her credit report for a specific party or periodof time. (5) If the consumer wishes to allow his or her credit report to beaccessed for a specific party or period of time while a freeze is inplace, he or she shall contact the consumer reporting agency, requestthat the freeze be temporarily lifted, and provide the following: (a) Proper identification, which means that information generallydeemed sufficient to identify a person. Only if the consumer is unableto sufficiently identify himself or herself, may a consumer reportingagency require additional information concerning the consumer'semployment and personal or family history in order to verify his or heridentity; (b) The unique personal identification number or password providedby the credit reporting agency under subsection (4) of this section;and (c) The proper information regarding the third party who is toreceive the credit report or the time period for which the report isavailable to users of the credit report. (6) A consumer reporting agency that receives a request from aconsumer to temporarily lift a freeze on a credit report undersubsection (5) of this section, shall comply with the request no laterthan three business days after receiving the request. (7) A consumer reporting agency may develop procedures involvingthe use of telephone, fax, the internet, or other electronic media toreceive and process a request from a consumer to temporarily lift afreeze on a credit report under subsection (5) of this section in anexpedited manner. (8) A consumer reporting agency shall remove or temporarily lift afreeze placed on a consumer's credit report only in the followingcases: (a) Upon consumer request, under subsection (5) or (11) of thissection; or (b) When the consumer's credit report was frozen due to a materialmisrepresentation of fact by the consumer. When a consumer reportingagency intends to remove a freeze upon a consumer's credit report under 2 this subsection, the consumer reporting agency shall notify theconsumer in writing prior to removing the freeze on the consumer'scredit report. (9) When a third party requests access to a consumer credit reporton which a security freeze is in effect, and this request is inconnection with an application for credit or any other use, and theconsumer does not allow his or her credit report to be accessed forthat specific party or period of time, the third party may treat theapplication as incomplete. (10) When a consumer requests a security freeze, the consumerreporting agency shall disclose the process of placing and temporarilylifting a freeze, and the process for allowing access to informationfrom the consumer's credit report for a specific party or period oftime while the freeze is in place. (11) A security freeze remains in place until the consumer requeststhat the security freeze be removed. A consumer reporting agency shallremove a security freeze within three business days of receiving arequest for removal from the consumer, who provides both of thefollowing: (a) Proper identification, as defined in subsection (5)(a) of thissection; and (b) The unique personal identification number or password providedby the consumer reporting agency under subsection (4) of this section. (12) This section does not apply to the use of a consumer creditreport by any of the following: (a) A person or entity, or a subsidiary, affiliate, or agent ofthat person or entity, or an assignee of a financial obligation owingby the consumer to that person or entity, or a prospective assignee ofa financial obligation owing by the consumer to that person or entityin conjunction with the proposed purchase of the financial obligation,with which the consumer has or had prior to assignment an account orcontract, including a demand deposit account, or to whom the consumerissued a negotiable instrument, for the purposes of reviewing theaccount or collecting the financial obligation owing for the account,contract, or negotiable instrument. For purposes of this subsection,"reviewing the account" includes activities related to accountmaintenance, monitoring, credit line increases, and account upgradesand enhancements; 3 (b) A subsidiary, affiliate, agent, assignee, or prospectiveassignee of a person to whom access has been granted under subsection(5) of this section for purposes of facilitating the extension ofcredit or other permissible use; (c) Any federal, state, or local entity, including a lawenforcement agency, court, or their agents or assigns; (d) A private collection agency acting under a court order,warrant, or subpoena; (e) A child support agency acting under Title IVD of the socialsecurity act (42 U.S.C. et seq.); (f) The department of social and health services acting to fulfillany of its statutory responsibilities; (g) The internal revenue service acting to investigate or collectdelinquent taxes or unpaid court orders or to fulfill any of its otherstatutory responsibilities; (h) The use of credit information for the purposes of prescreeningas provided for by the federal fair credit reporting act; (i) Any person or entity administering a credit file monitoringsubscription service to which the consumer has subscribed; and (j) Any person or entity for the purpose of providing a consumerwith a copy of his or her credit report upon the consumer's request.NEW SECTION.Sec. A new section is added to chapter 19.182 RCWto read as follows: If a security freeze is in place, a consumer reporting agency maynot change any of the following official information in a consumercredit report without sending a written confirmation of the change tothe consumer within thirty days of the change being posted to theconsumer's file: Name, date of birth, social security number, andaddress. Written confirmation is not required for technicalmodifications of a consumer's official information, including name andstreet abbreviations, complete spellings, or transposition of numbersor letters. In the case of an address change, the written confirmationshall be sent to both the new address and to the former address.NEW SECTION.Sec. A new section is added to chapter 19.182 RCWto read as follows: A consumer reporting agency is not required to place a security 4 freeze in a consumer credit report under section 1 of this act if itacts only as a reseller of credit information by assembling and merginginformation contained in the data base of another consumer reportingagency or multiple consumer reporting agencies, and does not maintaina permanent data base of credit information from which new consumercredit reports are produced. However, a consumer reporting agency musthonor any security freeze placed on a consumer credit report by anotherconsumer reporting agency.NEW SECTION.Sec. A new section is added to chapter 19.182 RCWto read as follows: The following entities are not required to place a security freezein a consumer credit report under section 1 of this act: (1) A check services or fraud prevention services company, whichissues reports on incidents of fraud or authorizations for the purposeof approving or processing negotiable instruments, electronic fundstransfers, or similar methods of payments; and (2) A deposit account information service company, which issuesreports regarding account closures due to fraud, substantialoverdrafts, ATM abuse, or similar negative information regarding aconsumer, to inquiring banks or other financial institutions for useonly in reviewing a consumer request for a deposit account at theinquiring bank or financial institution.NEW SECTION.Sec. A new section is added to chapter 19.182 RCWto read as follows: A consumer reporting agency may furnish to a governmental agency aconsumer's name, address, former address, places of employment, orformer places of employment. Correct the title.Provides that only victims of identity theft, rather thanall consumers, may place a security freeze on their credit reports.Removes provision which would allow a fee to be charged for placing orremoving a security freeze. Removes section which would allowconsumers, by means of a phone call or a writing, to remove their 5 names from lists furnished for purposes of credit card solicitation.Changes all references to "consumer credit reporting agency" to"consumer reporting agency", making the references consistent with thedefinition and terminology already found in Chapter 19.182 RCW.--- END --- 6