SF 2193

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to consumer protection; authorizing a
consumer to place a security alert on a consumer
credit report; proposing coding for new law in
Minnesota Statutes, chapter 13C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [13C.032] SECURITY ALERT.
new text end

new text begin (a) A consumer may elect to place a security alert in the
consumer's credit report by making a request in writing or by
telephone to a consumer credit reporting agency. "Security
alert" means a notice placed in a consumer's credit report, at
the request of the consumer, that notifies a recipient of the
credit report that the consumer's identity may have been used
without the consumer's consent to fraudulently obtain goods or
services in the consumer's name.
new text end

new text begin (b) A consumer credit reporting agency shall notify each
person requesting consumer credit information with respect to a
consumer of the existence of a security alert in the credit
report of that consumer, regardless of whether a full credit
report, credit score, or summary report is requested.
new text end

new text begin (c) Each consumer credit reporting agency shall maintain a
toll-free telephone number to accept security alert requests
from consumers 24 hours a day, seven days a week.
new text end

new text begin (d) The toll-free telephone number must be included in any
written disclosure by a consumer credit reporting agency to a
consumer and must be printed in a clear and conspicuous manner.
new text end

new text begin (e) A consumer credit reporting agency shall place a
security alert on a consumer's credit report no later than five
business days after receiving a request from the consumer.
new text end

new text begin (f) The security alert shall remain in place for at least
90 days, and a consumer shall have the right to request a
renewal of the security alert.
new text end

new text begin (g) Any person who uses a consumer credit report in
connection with the approval of credit based on an application
for an extension of credit, or with the purchase, lease, or
rental of goods or non-credit-related services and who receives
notification of a security alert pursuant to paragraph (a) may
not lend money, extend credit, or complete the purchase, lease,
or rental of goods or non-credit-related services without taking
reasonable steps to verify the consumer's identity, in order to
ensure that the application for an extension of credit or for
the purchase, lease, or rental of goods or non-credit-related
services is not the result of identity theft. If the consumer
has placed a statement with the security alert in the consumer's
file requesting that identity be verified by calling a specified
telephone number, any person who receives that statement with
the security alert in a consumer's file pursuant to paragraph
(a) shall take reasonable steps to verify the identity of the
consumer by contacting the consumer using the specified
telephone number before lending money, extending credit, or
completing the purchase, lease, or rental of goods or
non-credit-related services. If a person uses a consumer credit
report to facilitate the extension of credit or for another
permissible purpose on behalf of the subsidiary, affiliate,
agent, assignee, or prospective assignee, that person may verify
a consumer's identity under this section in lieu of the
subsidiary, affiliate, agent, assignee, or prospective assignee.
new text end

new text begin (h) For purposes of this section, "extension of credit"
does not include an increase in the dollar limit of an existing
open-end credit plan, as defined in Regulation Z issued by the
Board of Governors of the Federal Reserve System, Code of
Federal Regulations, title 12, section 226.2, or any change to,
or review of, an existing credit account.
new text end

new text begin (i) A consumer credit reporting agency shall notify each
consumer who has requested that a security alert be placed on
the consumer's credit report of the expiration date of the alert.
new text end

new text begin (j) A consumer credit reporting agency that recklessly,
willfully, or intentionally fails to place a security alert
pursuant to this section is liable for a penalty in an amount of
up to $2,500 and reasonable attorney fees.
new text end