MISSISSIPPI LEGISLATURE
2018 Regular Session
To: Judiciary, Division A
By: Senator(s) Hopson
AN ACT TO AMEND SECTIONS 75-24-201 AND 75-24-207, MISSISSIPPI CODE OF 1972, TO REVISE THE METHOD TO REQUEST A SECURITY FREEZE, TO PROHIBIT A CONSUMER REPORTING AGENCY FROM CHARGING A FEE, AND TO ALLOW A PARENT OR LEGAL GUARDIAN OF A MINOR YOUNGER THAN 18 YEARS OF AGE, OR AN INDIVIDUAL FOR WHOM A GUARDIAN OR CONSERVATOR HAS BEEN APPOINTED, TO PLACE A SECURITY FREEZE ON THE CONSUMER REPORT OF A PROTECTED CONSUMER; TO AMEND SECTIONS 75-24-203, 75-24-209 AND 75-24-215, MISSISSIPPI CODE OF 1972, TO CONFORM; 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) As used in Sections 75-24-201
through 75-24-217, the terms:
(a) "Protected consumer" means a person younger than eighteen (18) years of age at the time a security freeze request is made or an incapacitated person or a protected person for whom a guardian or conservator has been appointed.
(b) "Representative" means the parent or legal guardian of a protected consumer, including a guardian appointed pursuant to this section.
(c)
"Security freeze" means a notice that ( * * *i) 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 ( * * *ii) is placed in the file retained by
the consumer reporting agency on that consumer or protected consumer at
the * * *
request of the consumer or representative pursuant to * * * this section.
(d) "Sufficient proof of authority" means documentation showing that a representative has authority to act on behalf of a protected consumer. The term includes, but is not limited to, a court order, a copy of a valid power of attorney, or a written notarized statement signed by the representative which expressly describes the authority of the representative to act on behalf of the protected consumer. A representative who is a parent may establish sufficient proof of authority by providing a certified or official copy of the protected consumer's birth certificate.
(e) "Sufficient proof of identification" means documentation identifying a protected consumer or a representative. The term includes, but is not limited to, a copy of a social security card, a certified or official copy of a birth certificate, a copy of a valid driver's license, or a copy of a government-issued photo identification.
( * * *2) * * * A consumer may place a security
freeze on the consumer's credit report by making a request to a consumer
reporting agency in accordance with this subsection. A consumer reporting
agency shall place a security freeze on the consumer's credit report if the
consumer requests a security freeze by any of the following methods:
(a) First-class mail;
(b) Telephone call;
(c) Secure website or secure electronic mail connection.
(3) A representative may place a security freeze on a protected consumer's consumer report by:
(a) Submitting a request to a consumer reporting agency in the manner prescribed by that agency; and
(b) Providing the agency with sufficient proof of authority and sufficient proof of identification of the representative.
(4) If a consumer reporting agency does not have a consumer report pertaining to a protected consumer when the consumer reporting agency receives a request for a security freeze under subsection (3), the consumer reporting agency shall create a record for the protected consumer and place a security freeze on the record. A record may not be created or used to consider the protected consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or eligibility for other financial services.
( * * *5) On * * * request for a security freeze provided
by a consumer * * * or representative, a consumer reporting agency
shall disclose to the consumer or representative the process of placing,
removing and temporarily lifting a security freeze and the process for allowing
access to information from the consumer's or protected consumer's file
with the consumer reporting agency for a specific requester or period while the
security freeze is in effect.
( * * *6) 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 or representative; and
(b) Provide the consumer or representative with a unique personal identification number or password to be used by the consumer or representative to authorize a removal or temporary lifting of the security freeze under Section 75-24-207.
( * * *7) A consumer or representative
may request in writing a replacement personal identification number or
password. * * * 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 or representative with a new unique personal identification
number or password to be used by the consumer or representative instead
of the number or password that was provided under subsection ( * * *6).
(8) A consumer reporting agency may not charge a fee for placing, removing or suspending for a specific party or period of time a security freeze on a consumer report.
SECTION 2. Section 75-24-207, Mississippi Code of 1972, is amended as follows:
75-24-207. (1) (a)
On a request in writing or by telephone and with proper identification provided
by a consumer, including the * * * 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.
( * * *b) On a request in writing or by
telephone and with proper identification provided by a consumer, including the * * * 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:
( * * *i) A certain properly designated
period; or
( * * *ii) A certain properly identified
requester.
( * * *c) 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.
(d) The provisions of this subsection (1) shall not apply to the removal or suspension of a security freeze on a protected consumer's consumer report.
(2) A consumer reporting agency shall remove a security freeze from a protected consumer's consumer report within three (3) days after receiving a request for removal from a protected consumer or his or her representative in the following manner:
(a) A representative submitting a request for removal must provide all of the following:
(i) Sufficient proof of identification of the representative and sufficient proof of authority as determined by the consumer reporting agency; and
(ii) The unique personal identifier provided by the consumer reporting agency under Section 75-24-201.
(b) A protected consumer submitting a request for removal must provide all of the following:
(i) Sufficient proof of identification of the protected consumer as determined by the consumer reporting agency; and
(ii) Documentation that the sufficient proof of authority of the protected consumer's representative to act on behalf of the protected consumer is no longer valid.
( * * *3) A consumer reporting agency
shall remove a security freeze placed on a consumer's or protected
consumer's file if the security freeze was placed due to a material
misrepresentation of fact by the consumer or representative. The
consumer reporting agency shall notify the consumer or representative in
writing before removing the security freeze under this subsection.
( * * *4) A consumer reporting agency may
not charge a fee for a request under * * * this section as
provided under Section 75-24-201.
SECTION 3. Section 75-24-203, Mississippi Code of 1972, is amended as follows:
75-24-203. If a security freeze is in place, a consumer reporting agency shall notify the consumer or representative in writing of a change in the consumer's or protected consumer's file retained by the consumer reporting agency to the consumer's or protected consumer's name, date of birth, social security number, or address not later than thirty (30) calendar days after the date the change is made. The agency shall send notification of a change of address to both the new address and former address of the consumer or representative. This section does not require notice of an immaterial change, including a street abbreviation change or correction of a transposition of letters or misspelling of a word.
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 * * * Department of Revenue
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 or protected consumer has an account or contract or to whom the consumer or protected 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 or protected consumer has subscribed;
(k) A person for the purpose of providing a consumer or protected consumer with a copy of the consumer's or protected consumer's report on the consumer's or protected 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; or
(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.
SECTION 5. Section 75-24-215, Mississippi Code of 1972, is amended as follows:
75-24-215. If a third party
requests access to a consumer report on which a security freeze applies, and
this request is in connection with an application for credit, insurance or any
other use, and the consumer or representative does not immediately
request the consumer reporting agency to lift the security freeze and allow * * * the credit report to be
accessed for that specific party or period of time, the third party may treat
the consumer's or protected consumer's application as incomplete.
SECTION 6. This act shall take effect and be in force from and after July 1, 2018.