MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Banking and Financial Services
By: Representatives Jones (111th), Flaggs
AN ACT TO AMEND SECTION 75-24-201, MISSISSIPPI CODE OF 1972, TO DELETE THE REQUIREMENT THAT A CONSUMER MUST PROVIDE TO A CONSUMER REPORTING AGENCY A LAW ENFORCEMENT REPORT REGARDING THE UNLAWFUL USE OF THE CONSUMER'S PERSONAL INFORMATION BEFORE THE CONSUMER MAY HAVE A SECURITY FREEZE PLACED ON HIS OR HER CONSUMER FILE; TO PROVIDE THAT A SECURITY FREEZE SHALL REMAIN IN EFFECT UNTIL THE CONSUMER REQUESTS THAT THE SECURITY FREEZE BE REMOVED; TO PROVIDE THAT A CONSUMER REPORTING AGENCY MAY NOT CHARGE ANY FEE TO A VICTIM OF IDENTITY THEFT WHO HAS SUBMITTED A COPY OF A VALID REPORT OR COMPLAINT WITH A LAW ENFORCEMENT AGENCY ABOUT THE UNLAWFUL USE OF THE VICTIM'S IDENTIFYING INFORMATION BY ANOTHER PERSON; TO PROVIDE THAT THE UNIQUE PERSONAL IDENTIFICATION NUMBER OR PASSWORD PROVIDED BY A CONSUMER REPORTING AGENCY TO A CONSUMER TO AUTHORIZE A REMOVAL OR TEMPORARY LIFTING OF THE SECURITY FREEZE MAY NOT BE THE CONSUMER'S SOCIAL SECURITY NUMBER; TO CREATE NEW SECTION 75-24-202, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT NOTICE BE PROVIDED TO A CONSUMER WHENEVER THE CONSUMER IS REQUIRED TO RECEIVE A SUMMARY OF RIGHTS REQUIRED UNDER THE FEDERAL FAIR CREDIT REPORTING ACT, STATING THE MISSISSIPPI CONSUMERS HAVE THE RIGHT TO OBTAIN A SECURITY FREEZE; TO PRESCRIBE THE CONTENTS OF THE NOTICE; TO AMEND SECTION 75-24-207, MISSISSIPPI CODE OF 1972, TO AUTHORIZE A CONSUMER REPORTING AGENCY TO CHARGE A CONSUMER A FEE TO REMOVE A SECURITY FREEZE OR TEMPORARILY LIFT A SECURITY FREEZE, EXCEPT FOR A CONSUMER WHO IS VICTIM OF IDENTITY THEFT WHO HAS SUBMITTED A COPY OF A VALID INVESTIGATIVE OR INCIDENT REPORT OR COMPLAINT WITH A LAW ENFORCEMENT AGENCY ABOUT THE UNLAWFUL USE OF THE VICTIM'S IDENTIFYING INFORMATION BY ANOTHER PERSON; TO AMEND SECTION 75-24-209, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A SECURITY FREEZE DOES NOT APPLY TO A CONSUMER REPORT PROVIDED TO CERTAIN ADDITIONAL PERSONS OR ENTITIES; TO CREATE NEW SECTION 75-24-216, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY PERSON WHOSE PROPERTY OR PERSON IS INJURED BY REASON OF A VIOLATION OF THE SECURITY FREEZE STATUTES MAY SUE FOR CIVIL DAMAGES AND INJUNCTIVE RELIEF; TO AMEND SECTION 75-24-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY VIOLATION OF THE SECURITY FREEZE STATUTES SHALL BE CONSIDERED AS AN UNFAIR OR DECEPTIVE TRADE PRACTICE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-24-201, Mississippi Code of 1972, is amended as follows:
75-24-201. (1) On written request sent by certified mail that includes proper identification provided by a consumer * * *, a consumer reporting agency shall place a security freeze on a consumer's consumer file not later than the fifth business day after the date the agency receives the request. Except as otherwise provided in Section 75-24-207(4), a security freeze shall remain in effect until the consumer requests that the security freeze be removed. A consumer reporting agency may charge a consumer a reasonable fee not to exceed Ten Dollars ($10.00) to place a security freeze in his file, except that a consumer reporting agency may not charge any fee to a victim of identity theft who has submitted a copy of a valid investigative or incident report or complaint with a law enforcement agency about the unlawful use of the victim's identifying information by another person.
(2) On written request for a security freeze provided by a consumer under subsection (1) of this section, a consumer reporting agency shall disclose to the consumer the process of placing, removing and temporarily lifting a security freeze and the process for allowing access to information from the consumer's file with the consumer reporting agency for a specific requester or period while the security freeze is in effect.
(3) A consumer reporting agency shall, not later than the tenth business day after the date the agency receives the request for a security freeze:
(a) Send a written confirmation of the security freeze to the consumer; and
(b) Provide the consumer with a unique personal identification number or password, other than the consumer's social security number, to be used by the consumer to authorize a removal or temporary lifting of the security freeze under Section 75-24-207.
(4) A consumer may request in writing a replacement personal identification number or password. The request must comply with the requirements for requesting a security freeze under subsection (1). The consumer reporting agency shall, not later than the third business day after the date the agency receives the request for a replacement personal identification number or password, provide the consumer with a new unique personal identification number or password to be used by the consumer instead of the number or password that was provided under subsection (3) of this section.
(5) As used in Sections 75-24-201 through 75-24-217, the term "security freeze" means a notice that (a) prohibits a consumer reporting agency from releasing all or any part of a consumer report or any information derived from a consumer report relating to the extension of credit, and (b) is placed in the file retained by the consumer reporting agency on that consumer at the consumer's request under subsection (1) of this section.
SECTION 2. The following shall be codified as Section 75-24-202, Mississippi Code of 1972:
75-24-202. At any time that a consumer is required to receive a summary of rights required under Section 609 of the federal Fair Credit Reporting Act, the following notice shall be included:
"Mississippi Consumers Have the Right to Obtain a Security Freeze.
You have a right to place a "security freeze" on your consumer credit report under Mississippi law. The security freeze will prohibit a consumer reporting agency from releasing any information in your consumer credit report without your express authorization. A security freeze must be requested in writing by certified mail.
The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gains access to the personal and financial information in your consumer credit report may delay, interfere with, or prohibit the timely approval of any later request or application you make regarding new loans, credit, mortgage, insurance, rental housing, employment, investment, license, cellular phone, utilities, digital signature, Internet credit card transactions, or other services, including an extension of credit at point of sale.
The security freeze will be placed on your credit report within five (5) business days after your request. When you place a security freeze on your credit report, you will be provided, within ten (10) business days after your request, a personal identification number or a password to use when you want to remove or temporarily lift the security freeze.
A security freeze does not apply when you have an existing account relationship and a copy of your report is requested by your existing creditor or its agents or affiliates for certain types of account review, collection, fraud control, or similar activities.
You should plan ahead and lift a security freeze if you are actively seeking credit or services, as a security freeze may slow your applications, as mentioned above.
You can remove a security freeze or authorize temporary access for a specific period of time by contacting the consumer reporting agency and providing all of the following:
(1) Your personal identification number or password;
(2) Proper identification to verify your identity; and
(3) Proper information regarding the period of time that you want your report available to users of the credit report or a properly identified requestor.
A consumer reporting agency that receives a request from you to temporarily lift a security freeze on a consumer report shall comply with the request no later than three (3) business days after receiving the request.
A consumer reporting agency may charge you up to Ten Dollars ($10.00) for each time that you place a security freeze, remove the security freeze, or temporarily lift the security freeze for a period of time, except that a consumer reporting agency may not charge any amount to a victim of identify theft who has submitted a copy of a valid investigative or incident report or complaint with a law enforcement agency about the unlawful use of the victim's identifying information by another person.
You have a right to bring a civil action against someone who violates your rights under the credit reporting laws. The action can be brought against a consumer reporting agency or a user of your credit report."
SECTION 3. Section 75-24-207, Mississippi Code of 1972, is amended as follows:
75-24-207. (1) On a request in writing or by telephone and with proper identification provided by a consumer, including the consumer's personal identification number or password provided under Section 75-24-201, a consumer reporting agency shall remove a security freeze within three (3) business days after the agency receives the request.
(2) On a request in writing or by telephone and with proper identification provided by a consumer, including the consumer's personal identification number or password provided under Section 75-24-201, a consumer reporting agency shall, within three (3) business days after the agency receives the request, temporarily lift the security freeze for:
(a) A certain properly designated period; or
(b) A certain properly identified requester.
(3) A consumer reporting agency may develop procedures involving the use of a telephone, a facsimile machine, the Internet or another electronic medium to receive and process a request from a consumer under this section.
(4) A consumer reporting agency shall remove a security freeze placed on a consumer file if the security freeze was placed due to a material misrepresentation of fact by the consumer. The consumer reporting agency shall notify the consumer in writing before removing the security freeze under this subsection.
(5) A consumer reporting agency may * * * charge a consumer a reasonable fee not to exceed Ten Dollars ($10.00) for a request to remove a security freeze under subsection (1) of this section or a request to temporarily lift a security freeze under subsection (2) of this section, except that a consumer reporting agency may not charge any fee to a victim of identity theft who has submitted a copy of a valid investigative or incident report or complaint with a law enforcement agency about the unlawful use of the victim's identifying information by another person.
SECTION 4. Section 75-24-209, Mississippi Code of 1972, is amended as follows:
75-24-209. A security freeze does not apply to a consumer report provided to:
(a) A state or local governmental entity, including a law enforcement agency or court or private collection agency, if the entity, agency or court is acting under a court order, warrant, subpoena or administrative subpoena;
(b) An agency acting to investigate or collect child support payments or acting under Title IV-D of the Social Security Act (42 USCS Section 651 et seq.);
(c) The State Tax Commission acting to investigate or collect delinquent sales or franchise taxes;
(d) A tax assessor-collector acting to investigate or collect delinquent ad valorem taxes;
(e) A person for the purposes of prescreening as provided by the Fair Credit Reporting Act (15 USCS Section 1681 et seq.), as amended;
(f) A person who intends to use the information for employment purposes;
(g) A person who intends to use the information in connection with adjusting a claim, rating or underwriting of insurance involving the consumer;
(h) A person with whom the consumer has an account or contract or to whom the consumer has issued a negotiable instrument, or the person's subsidiary, affiliate, agent, assignee, prospective assignee or private collection agency, for purposes related to that account, contract or instrument;
(i) A subsidiary, affiliate, agent, assignee or prospective assignee of a person to whom access has been granted under Section 75-24-207(2);
(j) A person who administers a credit file monitoring subscription service to which the consumer has subscribed;
(k) A person for the purpose of providing a consumer with a copy of the consumer's report on the consumer's request;
(l) A check service or fraud prevention service company that issues consumer reports:
(i) To prevent or investigate fraud; or
(ii) For purposes of approving or processing negotiable instruments, electronic funds transfers or similar methods of payment;
(m) A deposit account information service company that issues consumer reports related to account closures caused by fraud, substantial overdrafts, automated teller machine abuses or similar negative information regarding a consumer to an inquiring financial institution for use by the financial institution only in reviewing a consumer request for a deposit account with that institution; * * *
(n) A consumer reporting agency that:
(i) Acts only to resell credit information by assembling and merging information contained in a database of another consumer reporting agency or multiple consumer reporting agencies; and
(ii) Does not maintain a permanent database of credit information from which new consumer reports are produced;
(o) A state or local agency, or its agents or assigns, acting to investigate fraud, including Medicaid fraud, or acting to investigate or collect delinquent taxes or assessments, including interest and penalties, unpaid court orders, or to fulfill any of its other statutory responsibilities;
(p) A federal, state, or local governmental entity, including law enforcement agency, court, or its agent or assigns;
(q) A person for the purposes of prescreening as defined by the Fair Credit Reporting Act, 15 USCS Section 1681(b) et seq.;
(r) Any person for the sole purpose of providing for a credit file monitoring subscription service to which the consumer has subscribed;
(s) A consumer reporting agency for the purpose of providing a consumer with a copy of the consumer's credit report upon the consumer's request; or
(t) Any depository financial institution for checking, savings, and investment accounts.
SECTION 5. The following shall be codified as Section 75-24-216, Mississippi Code of 1972:
75-24-216. (1) A violation of Sections 75-24-201 through 75-24-217 is a violation of Section 75-24-5.
(2) Any person whose property or person is injured by reason of an act made unlawful by Sections 75-24-201 through 75-24-215 may sue for civil damages. Damages may be in an amount of up to Five Thousand Dollars ($5,000.00) but no less than Five Hundred Dollars ($500.00) for each incident, or three (3) times the amount of actual damages, whichever amount is greater. A person seeking damages as set forth in this section also may institute a civil action to enjoin and restrain future acts that would constitute a violation of Sections 75-24-201 through 75-24-215. The court, in an action brought under this section, may award reasonable attorneys' fees to the prevailing party.
SECTION 6. Section 75-24-5, Mississippi Code of 1972, is amended as follows:
75-24-5. (1) Unfair methods of competition affecting commerce and unfair or deceptive trade practices in or affecting commerce are prohibited. Action may be brought under Section 75-24-5(1) only under the provisions of Section 75-24-9.
(2) Without limiting the scope of subsection (1) of this section, the following unfair methods of competition and unfair or deceptive trade practices or acts in the conduct of any trade or commerce are * * * prohibited:
(a) Passing off goods or services as those of another;
(b) Misrepresentation of the source, sponsorship, approval, or certification of goods or services;
(c) Misrepresentation of affiliation, connection, or association with, or certification by another;
(d) Misrepresentation of designations of geographic origin in connection with goods or services;
(e) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that he does not have;
(f) Representing that goods are original or new if they are reconditioned, reclaimed, used, or secondhand;
(g) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;
(h) Disparaging the goods, services, or business of another by false or misleading representation of fact;
(i) Advertising goods or services with intent not to sell them as advertised;
(j) Advertising goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity;
(k) Misrepresentations of fact concerning the reasons for, existence of, or amounts of price reductions;
(l) Advertising by or on behalf of any licensed or regulated health care professional which does not specifically describe the license or qualifications of the licensed or regulated health care professional;
(m) Charging an increased premium for reinstating a motor vehicle insurance policy that was cancelled or suspended by the insured solely for the reason that he was transferred out of this state while serving in the United States Armed Forces or on active duty in the National Guard or United States Armed Forces Reserve. It is also an unfair practice for an insurer to charge an increased premium for a new motor vehicle insurance policy if the applicant for coverage or his covered dependents were previously insured with a different insurer and canceled that policy solely for the reason that he was transferred out of this state while serving in the United States Armed Forces or on active duty in the National Guard or United States Armed Forces Reserve. For purposes of determining premiums, an insurer shall consider such persons as having maintained continuous coverage. The provisions of this paragraph (m) shall apply only to such instances when the insured does not drive the vehicle during the period of cancellation or suspension of his policy;
(n) Any violation of Sections 75-24-201 through 75-24-217.
SECTION 7. This act shall take effect and be in force from and after July 1, 2010.