A08672 Summary:

BILL NOA08672B
 
SAME ASSAME AS S06886-D
 
SPONSORBuchwald
 
COSPNSRDinowitz, Barron, Barnwell, Mosley, Wallace, Zebrowski, Sepulveda, Simotas, D'Urso, Lupardo, Thiele, Simon, McDonald, Galef, Jaffee, Gottfried, Englebright, Braunstein, Brabenec, Ra, Gunther, Seawright, Lawrence
 
MLTSPNSRGlick, Jean-Pierre, McDonough
 
Amd 380-t, Gen Bus L; rpld 65.10 sub 2 (g-1), Pen L
 
Relates to prohibiting consumer credit reporting agencies from charging a fee for the placement, removal, or temporary lift of a security freeze following consumer credit reporting agency date breaches.
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A08672 Actions:

BILL NOA08672B
 
09/25/2017referred to consumer affairs and protection
01/03/2018referred to consumer affairs and protection
04/30/2018amend and recommit to consumer affairs and protection
04/30/2018print number 8672a
05/08/2018reported referred to codes
05/14/2018reported
05/17/2018advanced to third reading cal.917
05/22/2018passed assembly
05/22/2018delivered to senate
05/22/2018REFERRED TO CONSUMER PROTECTION
05/30/2018recalled from senate
05/30/2018RETURNED TO ASSEMBLY
05/30/2018vote reconsidered - restored to third reading
05/30/2018amended on third reading (t) 8672b
06/13/2018substituted by s6886d
 S06886 AMEND=D FUNKE
 09/25/2017REFERRED TO RULES
 10/18/2017AMEND AND RECOMMIT TO RULES
 10/18/2017PRINT NUMBER 6886A
 01/03/2018REFERRED TO CONSUMER PROTECTION
 05/02/2018AMEND AND RECOMMIT TO CONSUMER PROTECTION
 05/02/2018PRINT NUMBER 6886B
 05/15/2018AMEND (T) AND RECOMMIT TO CONSUMER PROTECTION
 05/15/2018PRINT NUMBER 6886C
 05/23/2018AMEND (T) AND RECOMMIT TO CONSUMER PROTECTION
 05/23/2018PRINT NUMBER 6886D
 05/31/20181ST REPORT CAL.1432
 06/04/20182ND REPORT CAL.
 06/05/2018ADVANCED TO THIRD READING
 06/11/2018PASSED SENATE
 06/11/2018DELIVERED TO ASSEMBLY
 06/11/2018referred to codes
 06/13/2018substituted for a8672b
 06/13/2018ordered to third reading cal.917
 06/13/2018passed assembly
 06/13/2018returned to senate
 12/18/2018DELIVERED TO GOVERNOR
 12/28/2018SIGNED CHAP.480
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A08672 Committee Votes:

CONSUMER AFFAIRS AND PROTECTION Chair:Titone DATE:05/08/2018AYE/NAY:16/0 Action: Favorable refer to committee Codes
TitoneAyeMikulinAye
AbbateAyeMcDonoughAye
QuartAyeStecAye
BuchwaldAyeJohnsAye
SimonAye
DilanAye
SeawrightAye
RozicAye
NiouAye
Pheffer AmatoAye
WilliamsAye
WallaceAye

CODES Chair:Lentol DATE:05/14/2018AYE/NAY:22/0 Action: Favorable
LentolAyeCurranAye
SchimmingerAyeGiglioAye
PretlowAyeMontesanoAye
CookAyeMorinelloAye
CymbrowitzAyePalumboAye
TitusAyeGarbarinoAye
O'DonnellAye
LavineAye
PerryAye
ZebrowskiAye
AbinantiAye
WeprinAye
MosleyAye
HevesiAye
FahyAye
SeawrightAye

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A08672 Floor Votes:

DATE:05/22/2018Assembly Vote  YEA/NAY: 138/0
AbbateYCookYGarbarinoYLupardoYPellegrinoYStecY
AbinantiYCrespoYGiglioYMageeERPeoples-StokesYSteckY
ArroyoYCrouchYGlickYMagnarelliYPerryYSternY
AshbyYCurranYGoodellYMalliotakisYPheffer AmatoYStirpeY
AubryYCusickYGottfriedYMcDonaldYPichardoYTagueY
BarclayYCymbrowitzYGuntherYMcDonoughYPretlowYTaylorY
BarnwellYDavilaYHawleyYMikulinYQuartYThieleY
BarrettYDe La RosaYHevesiYMill B YRaYTitoneY
BarronYDenDekkerYHikindERMill MGYRaiaYTitusY
BenedettoYDickensYHooperERMill MLYRamosYVanelY
BichotteERDilanYHunterYMontesanoERRichardsonYWalkerY
BlakeYDinowitzYHyndmanYMorelleYRiveraYWallaceY
BlankenbushYDiPietroYJaffeeYMorinelloYRodriguezYWalshY
BohenYD'UrsoYJean-PierreYMosleyYRose D YWalterY
BrabenecYEnglebrightYJenneYMurrayYRose L YWeinsteinY
BraunsteinYEpsteinYJohnsYNiouYRozicYWeprinY
BrindisiERErrigoYJonesYNolanYRyanYWilliamsY
BronsonEREspinalYJoynerYNorrisYSantabarbaraYWoernerY
BuchwaldYFahyYKimYOaksYSchimmingerYWrightY
ButlerYFernandezYKolbYO'DonnellYSeawrightYZebrowskiY
ByrneYFinchYLalorYOrtizYSimonYMr SpkrY
CahillYFitzpatrickYLavineYOtisYSimotasY
CarrollYFriendYLawrenceYPalmesanoYSkoufisY
CastorinaYGalefYLentolYPalumboYSmithY
ColtonYGanttERLiftonYPaulinYSolagesY

DATE:05/30/2018MOTION:BUCHWALD; To reconsider YEA/NAY: 132/0
AbbateYCookERGarbarinoYLupardoYPellegrinoYStecY
AbinantiYCrespoYGiglioYMageeERPeoples-StokesYSteckY
ArroyoYCrouchYGlickYMagnarelliYPerryYSternY
AshbyYCurranYGoodellYMalliotakisYPheffer AmatoYStirpeY
AubryYCusickERGottfriedYMcDonaldYPichardoYTagueY
BarclayYCymbrowitzYGuntherYMcDonoughYPretlowYTaylorER
BarnwellYDavilaYHawleyYMikulinYQuartYThieleY
BarrettYDe La RosaYHevesiYMill B YRaYTitoneER
BarronYDenDekkerYHikindERMill MGYRaiaYTitusY
BenedettoYDickensYHooperYMill MLERRamosYVanelY
BichotteERDilanYHunterYMontesanoYRichardsonERWalkerY
BlakeERDinowitzYHyndmanYMorelleYRiveraYWallaceY
BlankenbushYDiPietroYJaffeeYMorinelloYRodriguezYWalshY
BohenYD'UrsoYJean-PierreYMosleyYRose D YWalterY
BrabenecEREnglebrightYJenneYMurrayYRose L YWeinsteinY
BraunsteinYEpsteinYJohnsYNiouYRozicYWeprinY
BrindisiYErrigoYJonesYNolanYRyanYWilliamsY
BronsonYEspinalYJoynerYNorrisYSantabarbaraYWoernerY
BuchwaldYFahyYKimYOaksYSchimmingerYWrightY
ButlerERFernandezYKolbYO'DonnellYSeawrightYZebrowskiY
ByrneYFinchYLalorYOrtizYSimonYMr SpkrY
CahillYFitzpatrickYLavineYOtisYSimotasY
CarrollYFriendYLawrenceYPalmesanoYSkoufisY
CastorinaERGalefYLentolYPalumboYSmithY
ColtonYGanttERLiftonYPaulinYSolagesY

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A08672 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8672B
 
SPONSOR: Buchwald
  TITLE OF BILL: An act to amend the general business law, in relation to prohibiting consumer credit reporting agencies from charging a fee for the placement, removal, or temporary lift of a security freeze on a consumer credit report; and to repeal paragraph (g-1) of subdivision 2 of section 65.10 of the penal law relating thereto   PURPOSE OR GENERAL IDEA OF BILL: To allow consumers to establish any and all credit freezes, and lift (temporarily or otherwise) such freezes at consumer credit reporting agencies without incurring any fees.   SUMMARY OF PROVISIONS: Section 1 amends section 380-t of the general business law to prohibit consumer credit reporting agencies from charging consumers a fee for the placement, removal, or temporary lift of a security freeze, or for the issuance of a replacement PIN or password. Section 2 repeals paragraph (g-1) of subdivision 2 of section 65.10 of the penal law. Section 3 provides the effective date of the bill.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): The original bill would have prohibited breached consumer credit report- ing agencies from charging fees for security freezes, and required such agencies to reimburse consumers for fees that they incurred for placing security freezes with other, non-breached consumer credit reporting agencies. The amended version of the bill prohibits all consumer credit reporting agencies from charging a fee for the placement, lift, or temporary removal of a security freeze.   JUSTIFICATION: On September 7, 2017, consumer credit reporting agency Equifax made the public aware of a security breach in its database. Individual personal- ly-sensitive information, such as birthdays and Social Security numbers, of seemingly 143 million consumers was compromised. As a result, many New Yorkers are being urged to place security freezes on their credit reports. These freezes keep potential creditors from accessing an individual's credit file. Accordingly, a security freeze can prevent an unauthorized person from using another individual's iden- tity and credit to steal funds, which can ruin the victim's credit rating. Under New York State's existing security freeze law, residents are not charged for the placement of their first security freeze. However, New Yorkers (except those who are victims of domestic violence)can be charged up to $5 when they seek a second or further credit freeze. In addition, there can be a charge of up to $5 for the temporary lifting of a credit freeze, an approach that is often used when an individual knows that they are about to apply for a new credit card, mortgage or other loan. This legislation will strengthen consumer protections by ensuring that individuals do not bear the cost of the many security freeze transactions, across all credit bureaus (of which there are three major competitors) that they are likely to undertake in the wake of the Equifax or any similar data breach. Not only would this allow consumers to prioritize rebuilding their financial lives without bearing the financial cost of proper protections, also ensures that a credit bureau cannot profit from its lax data security.   PRIOR LEGISLATIVE HISTORY: This is a new bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None to the state.   EFFECTIVE DATE: This act shall take effect on the one hundred eightieth day after it shall have become law.
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A08672 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8672--B
                                                                Cal. No. 917
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                   September 25, 2017
                                       ___________
 
        Introduced  by  M.  of  A. BUCHWALD, DINOWITZ, BARRON, BARNWELL, MOSLEY,
          WALLACE, ZEBROWSKI, SIMOTAS, D'URSO, LUPARDO, THIELE, SIMON, McDONALD,
          GALEF,  JAFFEE,  GOTTFRIED,  ENGLEBRIGHT,  BRAUNSTEIN,  BRABENEC,  RA,
          GUNTHER,  SEAWRIGHT, LAWRENCE -- Multi-Sponsored by -- M. of A. GLICK,
          JEAN-PIERRE, McDONOUGH -- read once and referred to the  Committee  on
          Consumer  Affairs  and  Protection  -- recommitted to the Committee on
          Consumer Affairs and Protection in accordance with  Assembly  Rule  3,
          sec.  2  --  committee  discharged, bill amended, ordered reprinted as
          amended and recommitted to said committee -- reported and referred  to
          the  Committee  on  Codes  --  advanced  to a third reading, passed by
          Assembly and delivered to the Senate, recalled from the  Senate,  vote
          reconsidered,  bill amended, ordered reprinted, retaining its place on
          the order of third reading
 
        AN ACT to amend the general business law,  in  relation  to  prohibiting
          consumer  credit reporting agencies from charging a fee for the place-
          ment, removal, or temporary lift of a security freeze  on  a  consumer
          credit  report;  and  to  repeal  paragraph  (g-1) of subdivision 2 of
          section 65.10 of the penal law relating thereto
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  380-t of the general business law, as amended by
     2  chapter 279 of the laws of 2008, subdivisions (b) and (n) as  separately
     3  amended  by  chapter  406  of  the  laws of 2008, and subdivision (g) as
     4  amended by section 36 of part A of chapter 62 of the laws  of  2011,  is
     5  amended to read as follows:
     6    § 380-t.  Security  freeze. (a) A consumer may request that a security
     7  freeze be placed on his or her  consumer  credit  report  by  sending  a
     8  request  in writing with confirmation of delivery requested or via tele-
     9  phone, secure electronic  means,  or  other  methods  developed  by  the
    10  consumer  credit  reporting agency to a consumer credit reporting agency
    11  at an address, telephone number or secure  website  designated  by  such
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13493-11-8

        A. 8672--B                          2
 
     1  agency  to  receive  such  requests.  Consumer credit reporting agencies
     2  shall have a secure website and a separately dedicated toll-free  number
     3  to  offer  information,  to  process  requests  and deliver the services
     4  provided for under this section.
     5    (b) A consumer credit reporting agency that receives from a consumer a
     6  request  in  accordance  with  subdivision  (a)  of  this section shall,
     7  provided such request  is  accompanied  by  proper  identification  [and
     8  payment  of any applicable fee], place a security freeze on the consumer
     9  credit report of or relating to such consumer no later than  four  busi-
    10  ness  days after receiving such request, provided further, however, that
    11  for requests received on or after January first, two thousand nine, such
    12  consumer credit reporting agency shall place a security  freeze  on  the
    13  consumer  credit  report  of  or relating to such consumer no later than
    14  three business days  after  receiving  such  request  and  for  requests
    15  received  on  or  after  January  first, two thousand ten, such consumer
    16  credit reporting agency shall place a security freeze  on  the  consumer
    17  credit report of or relating to such consumer no later than one business
    18  day  after  receiving such request. Nothing in this subdivision shall be
    19  construed to prevent a consumer credit reporting agency from advising  a
    20  third  party  that  a  security  freeze is in effect with respect to the
    21  consumer credit report of or relating  to  such  consumer.  No  consumer
    22  credit reporting agency shall advise in any manner a third party, of the
    23  fact  that  the  consumer  requesting  the  freeze is alleging to be the
    24  victim of domestic violence  or  identity  theft,  without  the  written
    25  authorization of the consumer.
    26    (c)  The consumer credit reporting agency shall send a written confir-
    27  mation of the placement of a security freeze to the consumer within five
    28  business days of placing such freeze. Upon placing the  security  freeze
    29  on  the  consumer  credit  report  of  or relating to such consumer, the
    30  consumer credit reporting agency  shall  provide  the  consumer  with  a
    31  unique personal identification number or password, or other device which
    32  shall  only be used by the consumer when providing authorization for the
    33  release of his or her consumer credit report for  a  specific  party  or
    34  specific  period  of  time. The unique personal identification number or
    35  password, or other device to be used by the  consumer  shall  not  be  a
    36  social  security  number or a sequential portion thereof. Any use of the
    37  unique personal identification number or password or other device  other
    38  than provided for in this section is prohibited.
    39    (d)  If the consumer wishes to allow his or her consumer credit report
    40  to be accessed for a specific party or a specific period of time while a
    41  freeze is in place, he or she shall contact the consumer credit  report-
    42  ing  agency  via  mail  with confirmation of delivery, telephone, secure
    43  electronic means or other  method  developed  by  such  consumer  credit
    44  reporting  agency  pursuant  to  subdivision (f) of this section using a
    45  point of contact designated by such consumer  credit  reporting  agency,
    46  request  that  the freeze be temporarily lifted, and provide the follow-
    47  ing:
    48    (1) proper identification;
    49    (2) the unique personal identification number or password provided  by
    50  the consumer credit reporting agency pursuant to subdivision (c) of this
    51  section; and
    52    (3)  the  proper information regarding the party to which the consumer
    53  credit report should be available or  the  time  period  for  which  the
    54  consumer credit report shall be available to users of such report[; and
    55    (4) payment of any applicable fee].

        A. 8672--B                          3

     1    (e)  (1)  A  consumer  credit reporting agency that receives a request
     2  from a consumer to temporarily lift a freeze on a consumer credit report
     3  pursuant to subdivision (d) of  this  section,  shall  comply  with  the
     4  request:  (i)  no  later  than  three business days after receiving such
     5  request; (ii) as of September first, two thousand nine, a consumer cred-
     6  it  reporting  agency that receives a request via the use of a telephone
     7  or secure electronic method provided by the agency, pursuant to subdivi-
     8  sion (d) of this section, shall release a consumer's  credit  report  as
     9  requested  by  the  consumer within fifteen minutes after the request is
    10  received by the consumer credit reporting agency.
    11    (2) A consumer credit reporting agency is not required to  temporarily
    12  lift  a security freeze within the time provided in subparagraph (ii) of
    13  paragraph one of this subdivision if:
    14    (i) the consumer fails to meet the requirements of subdivision (b)  of
    15  this section; or
    16    (ii)  the  consumer  credit  reporting agency's ability to temporarily
    17  lift the security freeze within fifteen minutes is prevented by:
    18    (A) an act of God, including fire, earthquakes, hurricanes, storms, or
    19  similar natural disaster or phenomena;
    20    (B) unauthorized or illegal acts by a third party,  including  terror-
    21  ism,  sabotage,  riot,  vandalism,  labor strikes or disputes disrupting
    22  operations, or similar occurrence;
    23    (C) operational interruption, including electrical  failure,  unantic-
    24  ipated  delay  in equipment or replacement part delivery, computer hard-
    25  ware  or  software  failures  inhibiting  response  time,   or   similar
    26  disruption;
    27    (D)  governmental  action,  including emergency orders or regulations,
    28  judicial or law enforcement action, or similar directives;
    29    (E) regularly scheduled maintenance, during other than normal business
    30  hours, of, or updates to, the consumer reporting agency's systems; or
    31    (F) commercially reasonable maintenance of, or repair to, the consumer
    32  reporting agency's systems that is unexpected or unscheduled.
    33    (f) A consumer credit reporting agency may develop procedures  involv-
    34  ing  other  secure  methods  of  communication, including the use of the
    35  internet, or other electronic media to receive  and  process  a  request
    36  from a consumer to temporarily lift a freeze on a consumer credit report
    37  pursuant to subdivision (d) of this section in an expedited manner.
    38    (g)  The  department  of  state  shall monitor the state of technology
    39  relating to the means available to process requests for the  lifting  or
    40  removal  of  a security freeze, and shall report to the legislature when
    41  it is determined that the technology to process requests for the lifting
    42  or removal of a security freeze in a shorter period of  time  than  that
    43  set forth in subdivision (e) of this section is available.
    44    (h)  A  consumer  credit  reporting agency shall remove or temporarily
    45  lift a freeze placed on the consumer credit report of or relating  to  a
    46  consumer only in the following cases:
    47    (1)  upon consumer request, pursuant to subdivision (d) or (k) of this
    48  section; or
    49    (2) if the consumer credit report of or relating to such consumer  was
    50  frozen due to a material misrepresentation of fact by the consumer. If a
    51  consumer  credit  reporting  agency  intends  to  remove a freeze upon a
    52  consumer credit report pursuant to this paragraph, the  consumer  credit
    53  reporting  agency  shall  notify the consumer in writing, by first class
    54  mail, within three business days prior to removing the  freeze  on  such
    55  consumer credit report.

        A. 8672--B                          4
 
     1    (i)  If  a  third party requests access to a consumer credit report on
     2  which a security freeze is in effect, and this request is in  connection
     3  with  an  application for credit or any other use, and the consumer does
     4  not allow his or her consumer credit report  to  be  accessed  for  that
     5  period of time, the third party may treat the application as incomplete.
     6    (j)  If  a  consumer  requests  a security freeze, the consumer credit
     7  reporting agency shall disclose the process of placing  and  temporarily
     8  lifting  a  freeze,  and  the process for allowing access to information
     9  from such consumer credit report for a specific party  or  a  period  of
    10  time while the freeze is in place.
    11    (k)  (1)  A  security  freeze shall remain in place until the consumer
    12  requests, using a point of contact designated  by  the  consumer  credit
    13  reporting  agency,  that the security freeze be removed and provides the
    14  following:
    15    (i) proper identification; and
    16    (ii) the unique personal identification number or password or  similar
    17  device  provided  by  the  consumer  credit reporting agency pursuant to
    18  subdivision (c) of this section[; and
    19    (iii) a fee, if applicable].
    20    (2) A consumer credit reporting agency shall remove a security  freeze
    21  within  three  business days of receiving a request for removal from the
    22  consumer pursuant to paragraph one of this subdivision.
    23    (l) A consumer credit reporting agency shall require proper  identifi-
    24  cation  of  the  person  making  a request to place or remove a security
    25  freeze.
    26    (m) The provisions of this section do  not  apply  to  the  use  of  a
    27  consumer credit report by any of the following:
    28    (1)  a  person or entity, or a subsidiary, affiliate, or agent of that
    29  person or entity, or an assignee of a financial obligation owing by  the
    30  consumer to that person or entity, or a prospective assignee of a finan-
    31  cial  obligation  owing  by  the  consumer  to  that person or entity in
    32  conjunction with the proposed purchase of the financial obligation, with
    33  which the consumer  has  or  had  prior  to  assignment  an  account  or
    34  contract,  including  a  demand deposit account, or to whom the consumer
    35  issued a negotiable  instrument,  for  the  purposes  of  reviewing  the
    36  account  or  collecting  the financial obligation owing for the account,
    37  contract, or negotiable instrument.  For  purposes  of  this  paragraph,
    38  "reviewing  the  account" includes activities related to account mainte-
    39  nance, monitoring, credit  line  increases,  and  account  upgrades  and
    40  enhancements;
    41    (2)  a subsidiary, affiliate, agent, assignee, or prospective assignee
    42  of a person to whom access has been granted for purposes of facilitating
    43  the extension of credit or other permissible use;
    44    (3) any state or local agency, law enforcement agency, court,  private
    45  collection  agency, or person acting pursuant to a court order, warrant,
    46  or subpoena;
    47    (4) a child support agency acting pursuant to title iv-d of the social
    48  security act (42 U.S.C. et seq.);
    49    (5) the state or its political subdivisions or its agents  or  assigns
    50  acting  to  investigate fraud or acting to investigate or collect delin-
    51  quent taxes or unpaid court orders or to fulfill any of its other statu-
    52  tory responsibilities provided such responsibilities are consistent with
    53  a permissible purpose under 15 U.S.C. section 1681b;
    54    (6) the use of credit information for the purposes of prescreening  as
    55  provided for by the federal fair credit reporting act;

        A. 8672--B                          5
 
     1    (7)  any  person  or  entity  administering  a  credit file monitoring
     2  subscription or similar service to which the consumer has subscribed; or
     3    (8)  any person or entity for the purpose of providing a consumer with
     4  a copy of his or her consumer credit report or score upon the request of
     5  such consumer.
     6    (n) [(1) (i) No consumer credit reporting agency shall charge a fee to
     7  a victim of identity theft who submits a copy of a signed federal  trade
     8  commission  ID  theft victim's affidavit, or a report of ID theft from a
     9  law enforcement agency to such consumer credit reporting agency.
    10    (ii) No consumer credit reporting agency  shall  charge  a  fee  to  a
    11  domestic  violence  victim  who  has  submitted  to such consumer credit
    12  reporting agency:
    13    (A) a valid domestic violence incident report form  as  such  term  is
    14  defined  in subdivision fifteen of section eight hundred thirty-seven of
    15  the executive law;
    16    (B) a valid police report;
    17    (C) a valid order of protection; or
    18    (D) a signed affidavit from a licensed medical or mental  health  care
    19  provider,  employee  of  a  court  acting within the scope of his or her
    20  employment, social worker, a rape crisis counselor as defined in section
    21  forty-five hundred ten of the civil practice law and rules, or  advocate
    22  acting on behalf of an agency that assists domestic violence victims.
    23    For  the  purposes  of  this  subdivision, the term "domestic violence
    24  victim" means an individual who is a victim  of  a  family  offense,  as
    25  described in subdivision one of section 530.11 of the criminal procedure
    26  law,  or an offense committed by a member of such individual's immediate
    27  family, as defined in subdivision four of section 120.40  of  the  penal
    28  law.
    29    (2)  No  consumer  credit  reporting  agency  shall  charge a fee to a
    30  consumer requesting the placement of a security freeze when such consum-
    31  er has not previously requested the placement of a security freeze  from
    32  such  consumer  credit reporting agency. Except as provided for in para-
    33  graph one of this subdivision, a consumer credit  reporting  agency  may
    34  charge  a consumer a fee not to exceed five dollars for the placement of
    35  a second or subsequent freeze or for the removal  of  a  freeze  or  the
    36  temporary lift of a freeze for a specific party or period of time or for
    37  the issuance of a replacement personal identification number or password
    38  when  the consumer fails to retain the personal identification number or
    39  password provided to such consumer by  such  consumer  credit  reporting
    40  agency  pursuant to subdivision (c) of this section.] No consumer credit
    41  reporting agency shall charge a fee to any consumer for the placement of
    42  any security freeze, the removal of any security freeze,  the  temporary
    43  lift  of  any security freeze for a specific party or period of time, or
    44  the issuance of any replacement personal identification number or  pass-
    45  word  when  the  consumer  fails  to  retain the personal identification
    46  number or password provided to such consumer  by  such  consumer  credit
    47  reporting agency pursuant to subdivision (c) of this section.
    48    (o)  If  a  security  freeze  is in place, a consumer credit reporting
    49  agency shall not change any of the following official information  in  a
    50  consumer  credit  report  without  sending a written confirmation of the
    51  change to the consumer within thirty days of the change being posted  to
    52  the  file  of  or relating to such consumer: name, date of birth, social
    53  security number, and address. Written confirmation is not  required  for
    54  technical  modifications  of  the official information of or relating to
    55  such consumer, including name and street abbreviations, complete  spell-
    56  ings,  or transposition of numbers or letters. In the case of an address

        A. 8672--B                          6
 
     1  change, the written confirmation shall be sent to both the  new  address
     2  and to the former address.
     3    (p) The following entities are not required to place a security freeze
     4  on a consumer credit report:
     5    (1) a consumer credit reporting agency that acts only as a reseller of
     6  credit  information  by  assembling and merging information contained in
     7  the data base of another consumer credit reporting  agency  or  multiple
     8  consumer  credit  reporting  agencies, and does not maintain a permanent
     9  data base of credit information from which new consumer  credit  reports
    10  are  produced.  However,  a consumer credit reporting agency acting as a
    11  reseller shall honor any security freeze placed  on  a  consumer  credit
    12  report by another consumer credit reporting agency;
    13    (2)  a  check  services  or  fraud  prevention services company, which
    14  issues reports on incidents of fraud or authorizations for  the  purpose
    15  of  approving  or  processing  negotiable  instruments, electronic funds
    16  transfers, or similar methods of payments; or
    17    (3) a  deposit  account  information  service  company,  which  issues
    18  reports regarding account closures due to fraud, substantial overdrafts,
    19  ATM  abuse,  or  similar  negative  information regarding a consumer, to
    20  inquiring banks or other financial institutions for use only in  review-
    21  ing  a  consumer  request for a deposit account at the inquiring bank or
    22  financial institution.
    23    (q) (1) Any time a consumer credit reporting  agency  is  required  to
    24  send  a  summary  of rights required under 15 U.S.C. section 1681g, to a
    25  consumer residing in this state the following notice shall  be  included
    26  with such summary of rights:
    27    "NEW YORK CONSUMERS HAVE THE RIGHT TO OBTAIN A SECURITY FREEZE.
    28    YOU  HAVE  A RIGHT TO PLACE A "SECURITY FREEZE" ON YOUR CREDIT REPORT,
    29  WHICH WILL PROHIBIT A CONSUMER CREDIT REPORTING  AGENCY  FROM  RELEASING
    30  INFORMATION IN YOUR CREDIT REPORT WITHOUT YOUR EXPRESS AUTHORIZATION.  A
    31  CONSUMER  CREDIT  REPORTING AGENCY IS PROHIBITED FROM CHARGING YOU A FEE
    32  FOR THE PLACEMENT, REMOVAL, OR TEMPORARY LIFT OF A SECURITY  FREEZE,  OR
    33  FOR  THE  ISSUANCE OF A REPLACEMENT PERSONAL IDENTIFICATION NUMBER (PIN)
    34  OR PASSWORD IN THE EVENT THAT YOU FAIL TO RETAIN  THE  ORIGINAL  PIN  OR
    35  PASSWORD  PROVIDED  TO  YOU  BY SUCH CONSUMER CREDIT REPORTING AGENCY. A
    36  SECURITY FREEZE MUST  BE  REQUESTED  IN  WRITING  DELIVERY  CONFIRMATION
    37  REQUESTED  OR  VIA  TELEPHONE, SECURE ELECTRONIC MEANS, OR OTHER METHODS
    38  DEVELOPED BY THE CONSUMER CREDIT REPORTING AGENCY. THE  SECURITY  FREEZE
    39  IS  DESIGNED  TO PREVENT CREDIT, LOANS, AND SERVICES FROM BEING APPROVED
    40  IN YOUR NAME WITHOUT YOUR CONSENT. HOWEVER, YOU  SHOULD  BE  AWARE  THAT
    41  USING  A  SECURITY  FREEZE  TO  TAKE CONTROL OVER WHO GETS ACCESS TO THE
    42  PERSONAL AND FINANCIAL INFORMATION IN  YOUR  CREDIT  REPORT  MAY  DELAY,
    43  INTERFERE  WITH,  OR  PROHIBIT  THE  TIMELY  APPROVAL  OF ANY SUBSEQUENT
    44  REQUEST OR APPLICATION YOU MAKE REGARDING A NEW LOAN, CREDIT,  MORTGAGE,
    45  GOVERNMENT  SERVICES OR PAYMENTS, INSURANCE, RENTAL HOUSING, EMPLOYMENT,
    46  INVESTMENT,  LICENSE,  CELLULAR  PHONE,  UTILITIES,  DIGITAL  SIGNATURE,
    47  INTERNET CREDIT CARD TRANSACTION, OR OTHER SERVICES, INCLUDING AN EXTEN-
    48  SION  OF  CREDIT  AT  POINT OF SALE. WHEN YOU PLACE A SECURITY FREEZE ON
    49  YOUR CREDIT REPORT, YOU  WILL  BE  PROVIDED  A  PERSONAL  IDENTIFICATION
    50  NUMBER  OR  PASSWORD  TO  USE IF YOU CHOOSE TO REMOVE THE FREEZE ON YOUR
    51  CREDIT REPORT OR AUTHORIZE THE  RELEASE  OF  YOUR  CREDIT  REPORT  TO  A
    52  SPECIFIC  PARTY OR FOR A PERIOD OF TIME AFTER THE FREEZE IS IN PLACE. TO
    53  PROVIDE THAT AUTHORIZATION YOU MUST CONTACT THE CONSUMER CREDIT  REPORT-
    54  ING AGENCY AND PROVIDE ALL OF THE FOLLOWING:
    55    (1) THE PERSONAL IDENTIFICATION NUMBER OR PASSWORD;
    56    (2) PROPER IDENTIFICATION TO VERIFY YOUR IDENTITY; AND

        A. 8672--B                          7
 
     1    (3)  THE  PROPER INFORMATION REGARDING THE PARTY OR PARTIES WHO ARE TO
     2  RECEIVE THE CREDIT REPORT OR THE PERIOD OF TIME  FOR  WHICH  THE  REPORT
     3  SHALL BE AVAILABLE TO USERS OF THE CREDIT REPORT[; AND
     4    (4) PAYMENT OF ANY APPLICABLE FEE].
     5    A  CONSUMER CREDIT REPORTING AGENCY MUST AUTHORIZE THE RELEASE OF YOUR
     6  CREDIT REPORT NO LATER THAN THREE  BUSINESS  DAYS  AFTER  RECEIVING  THE
     7  ABOVE  INFORMATION.  EFFECTIVE  SEPTEMBER  FIRST,  TWO  THOUSAND NINE, A
     8  CONSUMER CREDIT REPORTING AGENCY THAT RECEIVES A REQUEST  VIA  TELEPHONE
     9  OR  SECURE  ELECTRONIC  METHOD  SHALL RELEASE A CONSUMER'S CREDIT REPORT
    10  WITHIN FIFTEEN MINUTES WHEN THE REQUEST IS RECEIVED.
    11    A SECURITY FREEZE DOES NOT APPLY TO CIRCUMSTANCES IN WHICH YOU HAVE AN
    12  EXISTING ACCOUNT RELATIONSHIP AND A COPY OF YOUR REPORT IS REQUESTED  BY
    13  YOUR  EXISTING CREDITOR OR ITS AGENTS OR AFFILIATES FOR CERTAIN TYPES OF
    14  ACCOUNT REVIEW, COLLECTION, FRAUD CONTROL OR SIMILAR ACTIVITIES.
    15    IF YOU ARE ACTIVELY SEEKING CREDIT, YOU  SHOULD  UNDERSTAND  THAT  THE
    16  PROCEDURES  INVOLVED IN LIFTING A SECURITY FREEZE MAY SLOW YOUR APPLICA-
    17  TION FOR CREDIT. YOU  SHOULD  PLAN  AHEAD  AND  LIFT  A  FREEZE,  EITHER
    18  COMPLETELY  IF  YOU  ARE  SHOPPING AROUND, OR SPECIFICALLY FOR A CERTAIN
    19  CREDITOR, BEFORE APPLYING FOR NEW CREDIT. WHEN SEEKING CREDIT OR  PURSU-
    20  ING  ANOTHER  TRANSACTION  REQUIRING ACCESS TO YOUR CREDIT REPORT, IT IS
    21  NOT NECESSARY TO RELINQUISH YOUR PIN OR  PASSWORD  TO  THE  CREDITOR  OR
    22  BUSINESS; YOU CAN CONTACT THE CONSUMER CREDIT REPORTING AGENCY DIRECTLY.
    23  IF  YOU CHOOSE TO GIVE OUT YOUR PIN OR PASSWORD TO THE CREDITOR OR BUSI-
    24  NESS, IT IS RECOMMENDED THAT YOU OBTAIN A NEW PIN OR PASSWORD  FROM  THE
    25  CONSUMER CREDIT REPORTING AGENCY."
    26    (2)  If  a consumer requests information about a security freeze, such
    27  consumer shall be provided with the notice set forth in paragraph one of
    28  this subdivision and with any  other  information  necessary  to  place,
    29  temporarily  lift  or  permanently lift a security freeze, including but
    30  not limited to the address, telephone number  or  point  of  contact  at
    31  which the consumer credit reporting agency receives such requests.
    32    (r)  When  a  consumer  credit reporting agency erroneously releases a
    33  consumer credit report subject to a security freeze or  any  information
    34  contained  in such consumer credit report, the consumer credit reporting
    35  agency shall send written notification to the affected  consumer  within
    36  three  business days following discovery or notification of such errone-
    37  ous release. Such notification shall also inform  the  consumer  of  the
    38  nature  of  the  information  released  and identify and provide contact
    39  information for the recipient of such  information  or  consumer  credit
    40  report.
    41    (s)  Whenever  there shall be a violation of this section, application
    42  may be made by the attorney general in the name of  the  people  of  the
    43  state of New York to a court or justice having jurisdiction by a special
    44  proceeding  to  issue an injunction, and upon notice to the defendant of
    45  not less than five days, to enjoin and restrain the continuance of  such
    46  violations;  and  if it shall appear to the satisfaction of the court or
    47  justice that the defendant has,  in  fact,  violated  this  section,  an
    48  injunction  may  be  issued  by  such  court  or  justice, enjoining and
    49  restraining any further violation,  without  requiring  proof  that  any
    50  person  has,  in  fact,  been  injured  or  damaged thereby. In any such
    51  proceeding, the court may make allowances to  the  attorney  general  as
    52  provided  in  paragraph  six  of subdivision (a) of section eighty-three
    53  hundred three of the civil practice law and rules, and  direct  restitu-
    54  tion.  Whenever  the  court  shall  determine  that  a violation of this
    55  section has occurred, the court may impose a civil penalty of  not  more
    56  than  five  thousand  dollars for each violation. In connection with any

        A. 8672--B                          8
 
     1  such proposed application, the attorney general is  authorized  to  take
     2  proof  and  make  a  determination  of  the  relevant facts and to issue
     3  subpoenas in accordance with the civil practice law and rules.
     4    §  2.  Paragraph  (g-1) of subdivision 2 of section 65.10 of the penal
     5  law is REPEALED.
     6    § 3. This act shall take effect on the one hundred eightieth day after
     7  it shall have become a law.
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