2023 Colorado Revised Statutes › Title 5 - CONSUMER CREDIT CODE (§§ 5-1-101 — 5-21-116) › DEBT MANAGEMENT (§§ 5-16-101 — 5-21-116) › Article 18 - COLORADO CONSUMER CREDIT REPORTING ACT (§§ 5-18-101 — 5-18-118) › Section 5-18-112.5 - Security freeze for protected consumers

(1)
A representative may place a security freeze on a protected consumer's consumer report or record by:
(a)
Submitting a written request to a consumer reporting agency in the manner prescribed by that agency; and
(b)
Providing the consumer reporting agency with sufficient proof of authority and sufficient proof of identification of the representative.
(2)
(a)
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 (1) of this section, the consumer reporting agency shall create a record for the protected consumer and place a security freeze on the record, only if the protected consumer's representative requests, in writing, a security freeze and provides required documentation in accordance with subsection (1) of this section.
(b)
A protected consumer's record created pursuant to subsection (2)(a) of this section shall not be used to consider the protected consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or eligibility for other financial services.
(3)
A consumer reporting agency shall place a security freeze on a consumer report or record within ten business days after confirming the authenticity of a security freeze request made in accordance with this section.
(4)
(a)
Except as provided in subsections (7)(c) and (9) of this section, if a security freeze is in place on a protected consumer's consumer report or record, information from the consumer report or record shall not be released to a third party without prior, express authorization from the protected consumer's representative or, if a protected consumer has provided the documentation required by subsection (7)(b) of this section, from the protected consumer.
(b)
A consumer reporting agency may advise a third party that a security freeze is in effect with respect to a protected consumer's consumer report or record.
(5)
Within ten business days after instituting a security freeze on a protected consumer's consumer report or record, the consumer reporting agency shall:
(a)
Send written confirmation of the security freeze to the address on file; and
(b)
Provide the representative with instructions for removing the security freeze.
(6)
A consumer reporting agency shall not state or imply to any person that a security freeze reflects a negative credit score, a negative credit history, or a negative credit rating.
(7)
(a)
A security freeze on a protected consumer's consumer report or record remains in effect until the protected consumer's representative or, if authorized under this subsection (7), the protected consumer requests removal of the security freeze.
(b)
Within ten business days after confirming the authenticity of a request, a consumer reporting agency shall remove a security freeze from a protected consumer's consumer report or record if a protected consumer or the protected consumer's representative requests that the security freeze be removed and provides to the consumer reporting agency sufficient proof of identification, and:
(I)
If the protected consumer's representative makes the request, sufficient proof of authority; or
(II)
If the protected consumer makes the request, documentation demonstrating that the representative's proof of authority used to request the security freeze is no longer valid. Such documentation may include proof that the protected consumer is sixteen years of age or older or that the representative's appointment is no longer valid.
(c)
If the consumer report or record was frozen due to a material misrepresentation of fact by the protected consumer's representative or someone purporting to be the protected consumer's representative, the consumer reporting agency shall remove the security freeze from the protected consumer's consumer report or record after notifying the protected consumer in writing.
(8)
Pursuant to any procedures developed in accordance with section
5-18-112 (5)
, a consumer reporting agency may use e-mail or other electronic media to receive and process a security freeze request.
(9)
This section does not apply to:
(a)
The use of a consumer report or record by or for any of the users or uses listed in section
5-18-112 (11)
;
(b)
A consumer reporting agency providing a copy of the protected consumer's consumer report or record to the protected consumer or the protected consumer's representative if requested by the protected consumer or protected consumer's representative; or
(c)
An entity listed in section
5-18-115 (2)
.
(10)
A consumer reporting agency shall not charge a fee to create a record in accordance with this section or for a request to place or remove a security freeze on a protected consumer's consumer report or record. A consumer reporting agency also shall not charge a fee to place, temporarily lift, temporarily lift for a specific party, or permanently remove a security freeze on the consumer report or record of any consumer under eighteen years of age.
(11)
A third party may treat a protected consumer's application for credit as incomplete if:
(a)
The third party requested access to the protected consumer's consumer report or record in connection with an application for credit; and
(b)
The protected consumer's consumer report or record is frozen pursuant to this section.
(12)
If a consumer reporting agency violates a security freeze placed on a protected consumer's consumer report or record by releasing information subject to the security freeze without proper authorization to release the information, the consumer reporting agency shall notify the protected consumer's representative or protected consumer in writing of the release of information within five business days after discovering the release of information. The notice must include the specific information released and the name, address, phone number, and, if available, e-mail address of the recipient of the information.
(13)
A protected consumer's representative or, if a protected consumer has demonstrated that his or her representative's proof of authority is no longer valid pursuant to subsection (7)(b)(II) of this section, a protected consumer may dispute information in the protected consumer's consumer report or record pursuant to the procedures set forth in section
5-18-110
and may request that a consumer reporting agency block the reporting of information in the protected consumer's consumer report or record pursuant to section
5-18-111
.
Added by 2018 Ch. 75, §2, eff. 1/1/2019.
L. 2018: Entire section added, (HB 18-1233), ch. 75, p. 652, § 2, effective 1/1/2019.