I 

109TH CONGRESS 

2D SESSION H. R. 5482 

To amend the Fair Credit Reporting Act to provide individuals the ability 

to control access to their credit reports, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 25, 2006 

Mrs. MALONEY introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To amend the Fair Credit Reporting Act to provide individuals the ability to control access to their credit reports, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Identity Theft Protec5 tion Act of 2006’’. 

6 SEC. 2. PROTECTION OF DATA THROUGH SECURITY 

7 FREEZE. 

8 (a) IN GENERAL.—The Fair Credit Reporting Act 

9 (15 U.S.C. 1681 et seq.) is amended by inserting after 


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1 section 605B (relating to block resulting from identity 

2 theft) the following new section: 

3 ‘‘§ 605C. Protection of data through security freeze 

4 ‘‘(a) IN GENERAL.— 

5 ‘‘(1) EMPLACEMENT.—A consumer may place a 

6 security freeze on the consumer report of the con7 sumer by making a request to a consumer reporting 

8 agency in writing or by telephone. 

9 ‘‘(2) CONSUMER DISCLOSURE.—If a consumer 

10 requests a security freeze, the consumer reporting 

11 agency shall disclose to the consumer the process of 

12 placing and removing the security freeze and explain 

13 to the consumer the potential consequences of the 

14 security freeze. 

15 ‘‘(b) EFFECT OF SECURITY FREEZE.— 

16 ‘‘(1) RELEASE OF INFORMATION BLOCKED.—If 

17 a security freeze is in place on a consumer report of 

18 a consumer, a consumer reporting agency may not 

19 release the consumer report or information from the 

20 consumer report to a third party without prior ex21 press authorization from the consumer. 

22 ‘‘(2) INFORMATION PROVIDED TO THIRD PAR23 TIES.—Paragraph (2) shall not be construed as pre24 venting a consumer reporting agency from advising 


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1 a third party that a security freeze is in effect with 

2 respect to a consumer report of a consumer. 

3 ‘‘(3) TREATMENT AS INCOMPLETE APPLICA4 TION.—If a third party, in connection with an appli5 cation for credit, requests access to a consumer re6 port on which a security freeze is in place, the third 

7 party may treat the application as incomplete. 

8 ‘‘(c) REMOVAL; TEMPORARY SUSPENSION.— 

9 ‘‘(1) IN GENERAL.—Except as provided in para10 graph (4), a security freeze shall remain in place 

11 until the consumer requests that the security freeze 

12 be removed. A consumer may remove a security 

13 freeze on the consumer report of the consumer by 

14 making a request to a consumer reporting agency in 

15 writing or by telephone. 

16 ‘‘(2) CONDITIONS.—A consumer reporting 

17 agency may remove a security freeze placed on the 

18 consumer report of a consumer only— 

19 ‘‘(A) upon the consumer’s request, pursu20 ant to paragraph (1); or 

21 ‘‘(B) if the agency determines that the 

22 consumer report of a consumer was frozen due 

23 to a material misrepresentation of fact by the 

24 consumer. 


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1 ‘‘(3) NOTIFICATION TO CONSUMER.—If a con2 sumer reporting agency intends to remove a freeze 

3 upon the consumer report of a consumer pursuant 

4 to paragraph (2)(B), the consumer reporting agency 

5 shall notify the consumer in writing prior to remov6 ing the freeze on the consumer report. 

7 ‘‘(4) TEMPORARY SUSPENSION.—A consumer 

8 may have a security freeze on the consumer report 

9 of the consumer temporarily suspended by making a 

10 request to a consumer reporting agency in writing or 

11 by telephone and specifying beginning and ending 

12 dates for the period during which the security freeze 

13 is not to apply to the consumer report of the con14 sumer. 

15 ‘‘(d) RESPONSE TIMES; NOTIFICATION OF OTHER

16 ENTITIES.— 

17 ‘‘(1) IN GENERAL.—A consumer reporting 

18 agency shall— 

19 ‘‘(A) place a security freeze on the con20 sumer report of a consumer under subsection 

21 (a) not later than 5 business days after receiv22 ing a request from the consumer under sub23 section (a)(1); and 

24 ‘‘(B) remove, or temporarily suspend, a se25 curity freeze within 3 business days after reVerDate Aug 31 2005 20:58 Jun 01, 2006 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5482.IH H5482

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1 ceiving a request for removal or temporary sus2 pension from the consumer under subsection 

3 (c). 

4 ‘‘(2) NOTIFICATION OF OTHER COVERED ENTI5 TIES.—If the consumer requests in writing or by 

6 telephone that other covered entities be notified of 

7 the request, the consumer reporting agency shall no8 tify all other consumer reporting agencies described 

9 in section 603(p)(1) of the request within 3 days 

10 after placing, removing, or temporarily suspending a 

11 security freeze on the consumer report of the con12 sumer under subsection (a), (c)(2)(A), or (c)(4), re13 spectively. 

14 ‘‘(3) IMPLEMENTATION BY OTHER COVERED

15 ENTITIES.—A consumer reporting agency that is no16 tified of a request under paragraph (2) to place, re17 move, or temporarily suspend a security freeze on a 

18 consumer report of a consumer shall place, remove, 

19 or temporarily suspend the security freeze on that 

20 consumer report within 3 business days after receiv21 ing the notification. 

22 ‘‘(e) CONFIRMATION.— 

23 ‘‘(1) IN GENERAL.—Whenever a consumer re24 porting agency places, removes, or temporarily sus25 pends a security freeze on the consumer report of a 


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1 consumer at the request of that consumer under 

2 subsection (a) or (c), respectively, the consumer re3 porting agency shall send a written confirmation of 

4 such action to the consumer within 10 business days 

5 after placing, removing, or temporarily suspending 

6 the security freeze on the consumer report. 

7 ‘‘(2) EXCEPTION.—This subsection shall not 

8 apply to the placement, removal, or temporary sus9 pension of a security freeze by a consumer reporting 

10 agency because of a notification received under sub11 section (d)(2). 

12 ‘‘(f) ID REQUIRED.—A consumer reporting agency 

13 may not place, remove, or temporarily suspend a security 

14 freeze on the consumer report of a consumer at the con15 sumer’s request unless the consumer provides proper iden16 tification (within the meaning of section 610(a)(1)) and 

17 the regulations prescribed under such subsection. 

18 ‘‘(g) EXCEPTIONS.—This section shall not apply to 

19 the use of a consumer credit report by any of the fol20 lowing: 

21 ‘‘(1) A person or entity, or a subsidiary, affil22 iate, or agent of that person or entity, or an as23 signee of a financial obligation owing by the con24 sumer to that person or entity, or a prospective as25 signee of a financial obligation owing by the conVerDate Aug 31 2005 20:58 Jun 01, 2006 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5482.IH H5482

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1 sumer to that person or entity in conjunction with 

2 the proposed purchase of the financial obligation, 

3 with which the consumer has or had prior to assign4 ment an account or contract, including a demand de5 posit account, or to whom the consumer issued a ne6 gotiable instrument, for the purposes of reviewing 

7 the account or collecting the financial obligation 

8 owing for the account, contract, or negotiable instru9 ment. 

10 ‘‘(2) Any Federal, State or local agency, law en11 forcement agency, trial court, or private collection 

12 agency acting pursuant to a court order, warrant, or 

13 subpoena. 

14 ‘‘(3) A child support agency or its agents or as15 signs acting pursuant to subtitle D of title IV of the 

16 Social Security Act or similar State law. 

17 ‘‘(4) The Department of Health and Human 

18 Services, a similar State agency, or the agents or as19 signs of the Federal or State agency acting to inves20 tigate medicare or medicaid fraud. 

21 ‘‘(5) The Internal Revenue Service or a State 

22 or municipal taxing authority, or a State department 

23 of motor vehicles, or any of the agents or assigns of 

24 these Federal, State, or municipal agencies acting to 

25 investigate or collect delinquent taxes or unpaid 


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1 court orders or to fulfill any of their other statutory 

2 responsibilities. 

3 ‘‘(6) The use of consumer credit information for 

4 the purposes of prescreening as provided under this 

5 title. 

6 ‘‘(7) Any person or entity administering a cred7 it file monitoring subscription to which the consumer 

8 has subscribed. 

9 ‘‘(8) Any person or entity for the purpose of 

10 providing a consumer with a copy of his or her cred11 it report or credit score upon the consumer’s re12 quest. 

13 ‘‘(h) FEES.— 

14 ‘‘(1) IN GENERAL.— 

15 ‘‘(A) CERTAIN REASONABLE FEES AL16 LOWED.—Except as provided in paragraph (2), 

17 a consumer reporting agency may charge a rea18 sonable fee, as determined by the Commission, 

19 for placing or temporarily suspending a security 

20 freeze on the consumer report of a consumer. 

21 ‘‘(B) FACTORS TO BE CONSIDERED.—In 

22 considering what is reasonable for the purpose 

23 of subparagraph (A), the Commission shall con24 sider the prevailing fees permitted by State law 


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1 immediately before the date of the enactment of 

2 the Identity Theft Protection Act of 2006. 

3 ‘‘(C) FEE FOR REMOVAL OF FREEZE PRO4 HIBITED.—No fee may be charged for removal 

5 of a security freeze. 

6 ‘‘(2) ID THEFT VICTIMS.—A consumer report7 ing agency may not charge a fee for placing, remov8 ing, or temporarily suspending a security freeze on 

9 the consumer report of a consumer if— 

10 ‘‘(A) the consumer— 

11 ‘‘(i) is a victim of identity theft; and 

12 ‘‘(ii) has filed a police report, inves13 tigative report, or complaint made to a po14 lice department with respect to the theft; 

15 or 

16 ‘‘(B) the consumer is the recipient of a no17 tice that a breach of data security has occurred 

18 with respect to information of the consumer 

19 that is required by law to be maintained se20 curely and in confidence. 

21 ‘‘(i) LIMITATION ON INFORMATION CHANGES IN

22 FROZEN REPORTS.— 

23 ‘‘(1) IN GENERAL.—If a security freeze is in 

24 place on the consumer report of a consumer, a con25 sumer reporting agency may not change any of the 


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1 following official information in that consumer re2 port without sending a written confirmation of the 

3 change to the consumer within 30 days after the 

4 change is made: 

5 ‘‘(A) Name. 

6 ‘‘(B) Date of birth. 

7 ‘‘(C) Social Security number. 

8 ‘‘(D) Address. 

9 ‘‘(2) CONFIRMATION.— 

10 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

11 not be construed as requiring written confirma12 tion for technical modifications of a consumer’s 

13 official information, including name and street 

14 abbreviations, complete spellings, or transposi15 tion of numbers or letters. 

16 ‘‘(B) OLD AND NEW ADDRESSES.—In the 

17 case of an address change, the written con18 firmation shall be sent to both the new address 

19 and to the former address. 

20 ‘‘(j) CERTAIN ENTITY EXEMPTIONS.— 

21 ‘‘(1) AGGREGATORS AND OTHER AGENCIES.— 

22 The provisions of subsections (a) through (h) shall 

23 not apply to a consumer reporting agency that acts 

24 only as a reseller of credit information by assembling 

25 and merging information contained in the data base 


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1 of another consumer reporting agency or multiple 

2 consumer reporting agencies, and does not maintain 

3 a permanent data base of consumer information 

4 from which new consumer reports are produced. 

5 ‘‘(2) OTHER EXEMPTED ENTITIES.—The fol6 lowing entities shall not be required to place a secu7 rity freeze in a consumer report under this section: 

8 ‘‘(A) A check services or fraud prevention 

9 services company, which issues reports on inci10 dents of fraud or authorizations for the purpose 

11 of approving or processing negotiable instru12 ments, electronic funds transfers, or similar 

13 methods of payments. 

14 ‘‘(B) A deposit account information service 

15 company, which issues reports regarding ac16 count closures due to fraud, substantial over17 drafts, automated teller machine abuse, or simi18 lar negative information regarding a consumer, 

19 to inquiring depository institutions or other fi20 nancial institutions for use only in reviewing a 

21 consumer request for a deposit account at the 

22 inquiring depository institution or other finan23 cial institution.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall take effect at the end of the 6-month 

3 period beginning on the date of the enactment of this Act. 

Æ 


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