Source: http://www.wvlegislature.gov/Bill_Text_HTML/2006_SESSIONS/RS/BILLS/hb4819%20intr.htm
Timestamp: 2018-01-24 02:11:27
Document Index: 776704016

Matched Legal Cases: ['§46', '§46', '§46', '§46', '§46', '§46', '§46', '§46', '§46', '§46', '§46', '§46', '§46', '§ 1681', '§46', '§46', '§1681', '§46', '§46', '§46']

hb4819 intr
H. B. 4819
(By Delegates Marshall, Eldridge, Miley, Manchin,
Caputo, DeLong, Webster, Brown and Walters)
[Introduced February 24, 2006; referred to the
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §46A-2A-101, §46A-2A-102, §46A-2A-103, §46A-2A-104, §46A-2A-105 and §46A-2A-106, all relating to consumer protection generally; defining certain terms; providing a procedure for consumers to implement a security freeze to prohibit a consumer reporting agency from releasing all or any part of the consumer's credit report or any information derived from it without the express authorization of the consumer in certain circumstances; providing for notice of consumer rights; providing civil penalties for violations; making a violation an unfair or deceptive act or practice; and providing for severability of the provisions of the article under certain circumstances.
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §46A-2A-101, §46A-2A-102, §46A-2A-103, §46A-2A-104, §46A-2A-105 and §46A-2A-106, all to read as follows:
ARTICLE 2A.THEFT OF CONSUMER IDENTITY PROTECTIONS.
§46A-2A-101. Definitions.
(1) "Person" means any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity.
(2) "Consumer" means an individual.
(3) "Consumer reporting agency" means any entity which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties.
(4) "Consumer report" or "credit report" means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected, in whole or in part, for the purpose of serving as a factor in establishing the consumer's eligibility for:
(a) Credit or insurance to be used primarily for personal,
family, or household purposes, except that nothing in this article authorizes the use of credit evaluations, credit scoring or insurance scoring in the underwriting of personal lines of property or casualty insurance;
(c) Any other purpose authorized under section 15 U.S.C. § 1681b.
(5) "Security freeze" means a notice, at the request of the consumer and subject to certain exceptions, that prohibits the consumer reporting agency from releasing all or any part of the consumer's credit report or any information derived from it without the express authorization of the consumer. If a security freeze is in place, a report or information may not be released to a third party without prior express authorization from the consumer. This subdivision does not prevent a consumer reporting agency from advising a third party that a security freeze is in effect with respect to the consumer's credit report.
(6) "Reviewing the account" or "account review" includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.
§46A-2A-102. Security Freeze: Timing, covered entities, cost.
(a) A consumer may elect to place a security freeze on his or her consumer report by:
(1) Making a request in writing by certified mail or overnight mail to a consumer reporting agency; or
(2) Making a request directly to the consumer reporting agency through a secure electronic mail connection, if an electronic mail connection is provided by the consumer reporting agency.
(b) A consumer reporting agency shall place a security freeze on a consumer report no later than five business days after receiving a written request from the consumer.
(c) The consumer reporting agency shall send a written confirmation of the security freeze to the consumer within five business days of placing the freeze and at the same time shall provide the consumer with a unique personal identification number or password to be used by the consumer when providing authorization for the release of his or her credit for a specific party or period of time.
(d) If the consumer wishes to allow his or her consumer report to be accessed for a specific party or period of time while a freeze is in place, he or she shall contact the consumer reporting agency via certified or overnight mail or secure electronic mail and request that the freeze be temporarily lifted, and provide all of the following:
(1) Information generally deemed sufficient to identify a person;
(2) The unique personal identification number or password provided by the consumer reporting agency pursuant to subsection (c) of this section; and
(3) The proper information regarding the third party who is to receive the consumer report or the time period for which the consumer report shall be available to users of the consumer report.
(e) A consumer reporting agency that receives a request from a consumer to temporarily lift a freeze on a consumer report pursuant to subsection (d) of this section shall comply with the request no later than three business days after receiving the request.
(f) A consumer reporting agency shall develop procedures involving the use of telephone, fax, the Internet, or other electronic media to receive and process a request from a consumer to temporarily lift a freeze on a consumer report pursuant to subsection (d) of this section in an expedited manner.
(g) A consumer reporting agency shall remove or temporarily lift a freeze placed on a consumer report only upon consumer request, pursuant to subsection (d) of this section.
(h) If a third party requests access to a consumer report on which a security freeze is in effect, and this request is in connection with an application for credit or any other use, and the consumer does not allow his or her consumer report to be accessed for that specific party or period of time, the third party may treat the application as incomplete.
(i) A security freeze shall remain in place until the consumer requests that the security freeze be removed. A consumer reporting agency shall remove a security freeze within three business days of receiving a request for removal from the consumer, who provides the following:
(j) A consumer reporting agency shall require proper identification of the person making a request to place or remove a security freeze.
(k) The provisions of this section do not apply to the use of a consumer credit report by any of the following:
(1) A person, or the person's subsidiary, affiliate, agent, or assignee with which the consumer has or, prior to assignment, had an account, contract, or debtor-creditor relationship for the purposes of reviewing the account or collecting the financial obligation owing for the account, contract, or debt.
(2) A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom access has been granted under section one hundred two-d of this article for purposes of facilitating the extension of credit or other permissible use.
(4) A state or local agency that administers a program for establishing and enforcing child support obligations.
(5) The West Virginia Department of Health and Human Resources, its agents or assigns acting to investigate fraud.
(6) The West Virginia Department of Tax and Revenue or its agents or assigns acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities.
(7) A person for the purposes of prescreening as defined by the Federal Fair Credit Reporting Act.
(9) Any person or entity for the purpose of providing a consumer with a copy of his or her credit report upon the consumer's request.
(l) A consumer reporting agency shall not charge a consumer any fee to place a security freeze on that consumer's consumer report.
(m) A consumer reporting agency may charge a reasonable fee, not to exceed five dollars, to a consumer who elects to remove or temporarily lift a security freeze on that consumer's consumer report.
(n) A consumer may be charged a reasonable fee, not to exceed five dollars, if the consumer fails to retain the original personal identification number provided by the consumer reporting agency and must be reissued the same or a new personal identification number.
§46A-2A-103. Notice of Rights.
(a) 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," 15 U.S.C. §1681g, the following notice shall be included:
"West Virginia Consumers Have the Right to Obtain a Security Freeze"
You may obtain a security freeze on your credit report to protect your privacy and ensure that credit is not granted in your name without your knowledge. You have a right to place a security freeze on your credit report pursuant to West Virginia law.
The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. When you place a security freeze on your credit report, within five business days you will be provided a personal identification number or password to use if you choose to remove the freeze on your credit report or to temporarily authorize the release of your credit report for a specific party, parties or period of time after the freeze is in place. To provide that authorization, you must contact the consumer reporting agency and provide all of the following:
(1) The unique personal identification number or password provided by the consumer reporting agency;
(2) Proper identification to verify your identity; and
(3) The proper information regarding the third party
or parties who are to receive the credit report or the period of time for which the report shall be available to users of the credit report.
A consumer reporting agency that receives a request from a consumer to lift temporarily a freeze on a credit report shall comply with the request no later than three business days or less, as provided by regulation, after receiving the request. A security freeze does not apply to circumstances in which 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.
(b) If a consumer requests information about a security freeze, he or she shall be provided with the notice provided in this section, about how to place, temporarily lift and permanently lift a security freeze.
§46A-2A-104. Violations; Penalties.
If a consumer reporting agency erroneously, whether by accident or design, violates the security freeze by releasing credit information that has been placed under a security freeze, the affected consumer is entitled to:
(1) Notification within five business days of the release of the information, including specificity as to the information released and the third party recipient of the information.
(2) File a complaint with the Federal Trade Commission and the state Attorney General.
(3) File a civil action against the consumer reporting agency seeking:
(a) Injunctive relief to prevent or restrain further violation of the security freeze; and
(b) A civil penalty in an amount not to exceed ten thousand
dollars for each violation plus any damages available under other civil laws; and
(c) Reasonable expenses, court costs, investigative costs, and attorney's fees.
(4) Each violation of the security freeze is a separate incident for purposes of imposing penalties under this section.
§46A-2A-105. Unfair or deceptive acts or practices.
Any violation of the provisions of this article is an unfair or deceptive act or practice.
§46A-2A-106. Severability.
The provisions of this article are severable. If any phrase, clause, sentence, provision or section is declared to be invalid or preempted, in whole or in part, by federal law or regulation, the validity of the remainder of this article shall not be affected thereby.
NOTE: The purpose of this bill is to establish a procedure whereby a consumer may implement a security freeze to prohibit a consumer reporting agency from releasing all or any part of the consumer's credit report or any information derived from it without the express authorization of the consumer. Civil penalties are provided for violations.