H.B. 435

1

REGULATING CREDIT RECORDS OF A
2 MINOR
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Eric K. Hutchings
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill addresses the placement and removal of a security freeze on the credit report
11 of a child.
12 Highlighted Provisions:
13 This bill:
14 . requires a consumer reporting agency to place a security freeze on the credit report
15 of a child when the credit reporting agency learns of the issuance of a Social
16 Security number to a child born in the state;
17 . allows the removal of a security freeze from a child's credit report upon request of a
18 parent or the child, if the child is 14 years of age or older;
19 . prevents a consumer reporting agency from charging a fee in connection with a
20 security freeze on a child's credit report; and
21 . makes technical changes.
22 Monies Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 This bill takes effect on September 1, 2008.
26 Utah Code Sections Affected:
27 AMENDS:

28 13-45-201 (Effective 09/01/08), as enacted by Chapter 344, Laws of Utah 2006
29 13-45-202 (Effective 09/01/08), as enacted by Chapter 344, Laws of Utah 2006
30 13-45-204 (Effective 09/01/08), as enacted by Chapter 344, Laws of Utah 2006
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 13-45-201 (Effective 09/01/08) is amended to read:
34 13-45-201 (Effective 09/01/08). Security freeze.
35 (1) (a) A consumer may place a security freeze on the consumer's credit report by:
36 [(a)] (i) making a request to a consumer reporting agency in writing by certified mail;
37 [(b)] (ii) providing proper identification; and
38 [(c)] (iii) paying the fee required by the consumer reporting agency in accordance with
39 Section 13-45-204 .
40 (b) (i) A consumer reporting agency shall place a security freeze on the credit report of
41 any child born in Utah at the time it learns of the issuance of a Social Security number to a
42 child born in Utah.
43 (ii) Unless a minor is emancipated, the legal parent or guardian of any minor may place
44 a security freeze on the minor's credit report.
45 (2) If a security freeze is in place, a consumer reporting agency may not release a
46 consumer's credit report, or information from the credit report, to a third party that intends to
47 use the information to determine a consumer's eligibility for credit without prior authorization
48 from the consumer.
49 (3) (a) Notwithstanding Subsection (2), a consumer reporting agency may
50 communicate to a third party requesting a consumer's credit report that a security freeze is in
51 effect on the consumer's credit report.
52 (b) If a third party requesting a consumer's credit report in connection with the
53 consumer's application for credit is notified of the existence of a security freeze under
54 Subsection (3)(a), the third party may treat the consumer's application as incomplete.
55 (4) Upon receiving a request from a consumer under Subsection (1), the consumer
56 reporting agency shall:
57 (a) place a security freeze on the consumer's credit report within five business days
58 after receiving the consumer's request;

59 (b) send a written confirmation of the security freeze to the consumer within ten
60 business days after placing the security freeze; and
61 (c) provide the consumer with a unique personal identification number or password to
62 be used by the consumer when providing authorizations for removal or temporary removal of
63 the security freeze under Section 13-45-202 .
64 (5) A consumer reporting agency shall require proper identification of the consumer
65 requesting to place, remove, or temporarily remove a security freeze.
66 (6) (a) A consumer reporting agency shall develop a contact method to receive and
67 process a consumer's request to place, remove, or temporarily remove a security freeze.
68 (b) A contact method under Subsection (6)(a) shall include:
69 (i) a postal address;
70 (ii) an electronic contact method chosen by the consumer reporting agency, which may
71 include the use of fax, Internet, or other electronic means; and
72 (iii) the use of telephone in a manner that is consistent with any federal requirements
73 placed on the consumer reporting agency.
74 (7) A security freeze placed under this section may be removed only in accordance
75 with Section 13-45-202 .
76 Section 2. Section 13-45-202 (Effective 09/01/08) is amended to read:
77 13-45-202 (Effective 09/01/08). Removal of security freeze -- Requirements and
78 timing.
79 (1) A consumer reporting agency may remove a security freeze from a consumer's
80 credit report only if:
81 (a) (i) the consumer reporting agency receives the consumer's request through a contact
82 method established and required in accordance with Subsection 13-45-201 (6); and
83 (ii) the consumer reporting agency receives the consumer's proper identification and:
84 (A) other information sufficient to identify the consumer; or
85 (B) the consumer provides the consumer's personal identification number or password;
86 or
87 (b) the consumer makes a material misrepresentation of fact in connection with the
88 placement of the security freeze and the consumer reporting agency notifies the consumer in
89 writing before removing the security freeze.

90 (2) (a) A consumer reporting agency shall temporarily remove a security freeze upon
91 receipt of:
92 (i) the consumer's request through the contact method established by the consumer
93 reporting agency in accordance with Subsection 13-45-201 (6);
94 (ii) the consumer's proper identification and:
95 (A) other information sufficient to identify the consumer; or
96 (B) personal identification number or password;
97 (iii) a specific designation of the period of time for which the security freeze is to be
98 removed; and
99 (iv) the consumer reporting agency receives the payment of any fee required under
100 Section 13-45-204 .
101 (b) A consumer reporting agency shall remove a security freeze from a consumer's
102 credit report within:
103 (i) three business days after the business day on which the consumer's written request
104 to remove the security freeze is received by the consumer reporting agency at the postal address
105 chosen by the consumer reporting agency in accordance with Subsection 13-45-201 (6); or
106 (ii) 15 minutes after the consumer's request is received by the consumer reporting
107 agency through the electronic contact method chosen by the consumer reporting agency in
108 accordance with Subsection 13-45-201 (6), or the use of telephone, during normal business
109 hours and includes the consumer's proper identification and correct personal identification
110 number or password.
111 (3) A consumer reporting agency need not remove a security freeze within the time
112 provided in Subsection (2)(b)(ii) if:
113 (a) the consumer fails to meet the requirements of Subsection 13-45-202 (1); or
114 (b) the consumer reporting agency's ability to remove the security freeze within 15
115 minutes is prevented by:
116 (i) an act of God, including fire, earthquakes, hurricanes, storms, or similar natural
117 disaster or phenomena;
118 (ii) unauthorized or illegal acts by a third party, including terrorism, sabotage, riot,
119 vandalism, labor strikes or disputes disrupting operations, or similar occurrence;
120 (iii) operational interruption, including electrical failure, unanticipated delay in

121 equipment or replacement part delivery, computer hardware or software failures inhibiting
122 response time, or similar disruption;
123 (iv) governmental action, including emergency orders or regulations, judicial or law
124 enforcement action, or similar directives;
125 (v) regularly scheduled maintenance, during other than normal business hours, of, or
126 updates to, the consumer reporting agency's systems;
127 (vi) commercially reasonable maintenance of, or repair to, the consumer reporting
128 agency's systems that is unexpected or unscheduled; or
129 (vii) receipt of a removal request outside of normal business hours.
130 (4) A security freeze on a child's credit report may be removed by:
131 (a) a parent; or
132 (b) the child if the child is 14 years of age or older.
133 Section 3. Section 13-45-204 (Effective 09/01/08) is amended to read:
134 13-45-204 (Effective 09/01/08). Fees for security freeze.
135 (1) Except as provided in Subsection (2), a consumer reporting agency may charge a
136 reasonable fee to a consumer for placing and temporarily removing a security freeze.
137 (2) A consumer reporting agency may not charge a fee for placing or removing a
138 security freeze if:
139 (a) (i) the consumer is a victim of identity fraud under Section 76-6-1102 ; and
140 [(b)] (ii) the consumer provides the consumer reporting agency with a valid copy of a
141 police report or police case number documenting the identity fraud[.]; or
142 (b) the consumer is a child under the age of 14.
143 Section 4. Effective date.
144 This bill takes effect on September 1, 2008.




Legislative Review Note
as of 1-30-07 2:38 PM

Office of Legislative Research and General Counsel