ARIZONA HOUSE OF REPRESENTATIVES

SB 1163: credit security freezes; fees; prohibition

PRIME SPONSOR: Senator Brophy McGee, LD 28

BILL STATUS: Commerce

Abstract

Relating to credit security fees.

Provisions

1. Prohibits a CRA from charging a fee for:

a. Placing a security freeze, removal or temporary lift of a security freeze on a consumer's credit report.  (Sec. 1)

b. Reissuing a new PIN or password.  (Sec. 1)

2. Conforms the section by striking current law that prohibits a CRA from charging a fee to: 

a. The victim of identity theft who submits a valid police report.  (Sec. 1)

b. A protected person who is a victim of identity theft and submits a valid police report. (Sec. 2)

c. A protected person under 16 years and the CRA has a credit report on the person.  (Sec. 2)

3. Makes technical and conforming changes.  (Sec. 1, 2)

Current Law

A consumer is defined as an individual and a CRA is defined as any person who engages in the practice of assembling or evaluating consumer credit information to transfer to third parties. (A.R.S. 44-1691)

A security freeze is a notice that is placed on the consumer's credit report that prohibits the CRA from releasing the credit report without prior authorization from the consumer. (A.R.S. § 44-1698)

A protected person is defined as an individual who is under 16 years of age at the time of the security freeze request or is an incapacitated person or has a guardian. (A.R.S. § 44-1698.02)

A consumer may request in writing that he or she wants to place a security freeze on the consumer's credit report.  A CRA has no more than 10 days after receiving the request to place a security freeze on the credit report and send confirmation to the consumer.  The CRA must provide the consumer with a PIN or password that is not the consumer's SSN and is used to authorize the release of the consumer's credit report or to remove the security freeze.  A security freeze remains in effect until the consumer requests the removal or temporary lift of the security freeze.  The CRA may charge a $5 fee for each security freeze, removal or temporary lift of the freeze when requested by the consumer, but may not charge a fee to a victim of identity theft who submits a valid police report.  The CRA may charge a $5 fee if the consumer forgets the PIN or password and requests a new one. The CRA may not make changes to the consumer's credit report while there is a security freeze. The security freeze also stops the CRA from releasing the consumer's credit report to a third party without consent of the consumer, but does not prevent the CRA from informing a third party of the security freeze. (A.R.S. § 44-1698)

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Fifty-third Legislature                  SB 1163

Second Regular Session                               Version 1: Commerce

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