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S.B. 71 Enrolled
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CONSUMER CREDIT PROTECTION
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2006 GENERAL SESSION
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STATE OF UTAH
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Chief Sponsor: Carlene M. Walker
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House Sponsor:
David Clark
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LONG TITLE
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General Description:
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This bill addresses consumer credit protections.
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Highlighted Provisions:
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This bill:
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. defines terms;
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. allows a consumer to place a security freeze on the consumer's credit report;
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. outlines the method for placing and removing a security freeze;
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. provides exceptions;
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. prohibits the release of a credit report that is subject to a security freeze, except in
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certain instances;
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. allows certain fees to be charged in connection with a security freeze;
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. governs changes to a credit report that is subject to a security freeze;
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. prohibits some uses of a consumer's personal information; and
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. provides for enforcement.
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Monies Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides an effective date.
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Utah Code Sections Affected:
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ENACTS:
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13-42-101, Utah Code Annotated 1953
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13-42-102, Utah Code Annotated 1953
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13-42-201, Utah Code Annotated 1953
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13-42-202, Utah Code Annotated 1953
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13-42-203, Utah Code Annotated 1953
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13-42-204, Utah Code Annotated 1953
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13-42-205, Utah Code Annotated 1953
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13-42-301, Utah Code Annotated 1953
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13-42-401, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
13-42-101
is enacted to read:
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CHAPTER 42. CONSUMER CREDIT PROTECTION ACT
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Part 1. General Provisions
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13-42-101. Title.
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This chapter is known as the "Consumer Credit Protection Act."
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Section 2.
Section
13-42-102
is enacted to read:
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13-42-102. Definitions.
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As used in this chapter:
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(1) "Consumer" means a natural person.
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(2) "Consumer reporting agency" means a person who, for fees, dues, or on a
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cooperative basis, regularly engages in whole or in part in the practice of assembling or
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evaluating information concerning a consumer's credit or other information for the purpose of
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furnishing a credit report to another person.
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(3) "Credit report" means a consumer report, as defined in 15 U.S.C. Sec. 1681a, that is
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used or collected in whole or part for the purpose of serving as a factor in establishing a
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consumer's eligibility for credit for personal, family, or household purposes.
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(4) "Normal business hours" means Sunday through Saturday, between the hours of
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6:00 a.m. and 9:30 p.m., Mountain Standard or Mountain Daylight Time.
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(5) (a) "Personal information" means personally identifiable financial information:
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(i) provided by a consumer to another person;
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(ii) resulting from any transaction with the consumer or any service performed for the
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consumer; or
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(iii) otherwise obtained by another person.
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(b) "Personal information" does not include:
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(i) publicly available information, as that term is defined by the regulations prescribed
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under 15 U.S.C. Sec. 6804; or
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(ii) any list, description, or other grouping of consumers, and publicly available
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information pertaining to the consumers, that is derived without using any nonpublic personal
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information.
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(c) Notwithstanding Subsection (5)(b), "personal information" includes any list,
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description, or other grouping of consumers, and publicly available information pertaining to
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the consumers, that is derived using any nonpublic personal information other than publicly
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available information.
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(6) "Proper identification" has the same meaning as in 15 U.S.C. Sec. 1681h(a)(1), and
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includes:
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(a) the consumer's full name, including first, last, and middle names and any suffix;
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(b) any name the consumer previously used;
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(c) the consumer's current and recent full addresses, including street address, any
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apartment number, city, state, and ZIP code;
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(d) the consumer's social security number; and
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(e) the consumer's date of birth.
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(7) "Security freeze" means a prohibition, consistent with Section
13-42-201
, on a
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consumer reporting agency's furnishing of a consumer's credit report to a third party intending
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to use the credit report to determine the consumer's eligibility for credit.
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Section 3.
Section
13-42-201
is enacted to read:
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Part 2. Security Freeze
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13-42-201. Security freeze.
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(1) A consumer may place a security freeze on the consumer's credit report by:
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(a) making a request to a consumer reporting agency in writing by certified mail;
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(b) providing proper identification; and
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(c) paying the fee required by the consumer reporting agency in accordance with
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Section
13-42-204
.
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(2) If a security freeze is in place, a consumer reporting agency may not release a
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consumer's credit report, or information from the credit report, to a third party that intends to
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use the information to determine a consumer's eligibility for credit without prior authorization
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from the consumer.
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(3) (a) Notwithstanding Subsection (2), a consumer reporting agency may
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communicate to a third party requesting a consumer's credit report that a security freeze is in
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effect on the consumer's credit report.
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(b) If a third party requesting a consumer's credit report in connection with the
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consumer's application for credit is notified of the existence of a security freeze under
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Subsection (3)(a), the third party may treat the consumer's application as incomplete.
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(4) Upon receiving a request from a consumer under Subsection (1), the consumer
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reporting agency shall:
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(a) place a security freeze on the consumer's credit report within five business days
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after receiving the consumer's request;
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(b) send a written confirmation of the security freeze to the consumer within ten
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business days after placing the security freeze; and
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(c) provide the consumer with a unique personal identification number or password to
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be used by the consumer when providing authorizations for removal or temporary removal of
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the security freeze under Section
13-42-202
.
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(5) A consumer reporting agency shall require proper identification of the consumer
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requesting to place, remove, or temporarily remove a security freeze.
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(6) (a) A consumer reporting agency shall develop a contact method to receive and
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process a consumer's request to place, remove, or temporarily remove a security freeze.
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(b) A contact method under Subsection (6)(a) shall include:
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(i) a postal address;
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(ii) an electronic contact method chosen by the consumer reporting agency, which may
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include the use of fax, Internet, or other electronic means; and
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(iii) the use of telephone in a manner that is consistent with any federal requirements
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placed on the consumer reporting agency.
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(7) A security freeze placed under this section may be removed only in accordance
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with Section
13-42-202
.
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Section 4.
Section
13-42-202
is enacted to read:
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13-42-202. Removal of security freeze -- Requirements and timing.
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(1) A consumer reporting agency may remove a security freeze from a consumer's
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credit report only if:
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(a) (i) the consumer reporting agency receives the consumer's request through a contact
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method established and required in accordance with Subsection
13-42-201
(6); and
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(ii) the consumer reporting agency receives the consumer's proper identification and:
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(A) other information sufficient to identify the consumer; or
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(B) the consumer provides the consumer's personal identification number or password;
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or
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(b) the consumer makes a material misrepresentation of fact in connection with the
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placement of the security freeze and the consumer reporting agency notifies the consumer in
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writing before removing the security freeze.
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(2) (a) A consumer reporting agency shall temporarily remove a security freeze upon
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receipt of:
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(i) the consumer's request through the contact method established by the consumer
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reporting agency in accordance with Subsection
13-42-201
(6);
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(ii) the consumer's proper identification and:
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(A) other information sufficient to identify the consumer; or
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(B) personal identification number or password;
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(iii) a specific designation of the period of time for which the security freeze is to be
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removed; and
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(iv) the consumer reporting agency receives the payment of any fee required under
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Section
13-42-204
.
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(b) A consumer reporting agency shall remove a security freeze from a consumer's
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credit report within:
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(i) three business days after the business day on which the consumer's written request
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to remove the security freeze is received by the consumer reporting agency at the postal address
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chosen by the consumer reporting agency in accordance with Subsection
13-42-201
(6); or
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(ii) 15 minutes after the consumer's request is received by the consumer reporting
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agency through the electronic contact method chosen by the consumer reporting agency in
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accordance with Subsection
13-42-201
(6), or the use of telephone, during normal business
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hours and includes the consumer's proper identification and correct personal identification
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number or password.
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(3) A consumer reporting agency need not remove a security freeze within the time
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provided in Subsection (2)(b)(ii) if:
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(a) the consumer fails to meet the requirements of Subsection
13-42-202
(1); or
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(b) the consumer reporting agency's ability to remove the security freeze within 15
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minutes is prevented by:
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(i) an act of God, including fire, earthquakes, hurricanes, storms, or similar natural
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disaster or phenomena;
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(ii) unauthorized or illegal acts by a third party, including terrorism, sabotage, riot,
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vandalism, labor strikes or disputes disrupting operations, or similar occurrence;
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(iii) operational interruption, including electrical failure, unanticipated delay in
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equipment or replacement part delivery, computer hardware or software failures inhibiting
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response time, or similar disruption;
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(iv) governmental action, including emergency orders or regulations, judicial or law
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enforcement action, or similar directives;
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(v) regularly scheduled maintenance, during other than normal business hours, of, or
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updates to, the consumer reporting agency's systems;
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(vi) commercially reasonable maintenance of, or repair to, the consumer reporting
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agency's systems that is unexpected or unscheduled; or
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(vii) receipt of a removal request outside of normal business hours.
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Section 5.
Section
13-42-203
is enacted to read:
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13-42-203. Exceptions.
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(1) Notwithstanding Section
13-42-201
, a consumer reporting agency may furnish a
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consumer's credit report to a third party if:
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(a) (i) the purpose of the credit report is to:
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(A) use the credit report for purposes permitted under 15 U.S.C. Sec. 1681b(c); or
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(B) review the consumer's account with the third party, including for account
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maintenance or monitoring, credit line increases, or other upgrades or enhancements; or
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(C) collect on a financial obligation owed by the consumer to the third party requesting
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the credit report; or
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(ii) (A) the purpose of the credit report is to:
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(I) review the consumer's account with another person; or
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(II) collect on a financial obligation owed by the consumer to another person; and
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(B) use the credit report for purposes permitted under 15 U.S.C. Sec. 1681b(c); or
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(b) the third party requesting the credit report is a subsidiary, affiliate, agent, assignee,
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or prospective assignee of the person holding the consumer's account or to whom the consumer
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owes a financial obligation;
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(2) (a) The consumer's request for a security freeze does not prohibit the consumer
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reporting agency from disclosing the consumer's credit report for other than credit related
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purposes consistent with the definition of credit report found in Section
13-42-102
.
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(b) The following list identifies the types of credit report disclosures by consumer
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reporting agencies to third parties that are not prohibited by a security freeze:
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(i) the third party does not use the credit report for the purpose of serving as a factor in
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establishing a consumer's eligibility for credit;
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(ii) the third party is acting under a court order, warrant, or subpoena requiring release
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of the credit report;
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(iii) the third party is a child support agency, or its agent or assignee, acting under Part
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D, Title IV of the Social Security Act or a similar state law;
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(iv) the federal Department of Health and Human Services or a similar state agency, or
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its agent or assignee, investigating Medicare or Medicaid fraud;
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(v) (A) the purpose of the credit report is to investigate or collect delinquent taxes,
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assessments, or unpaid court orders; and
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(B) the third party is:
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(I) the federal Internal Revenue Service;
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(II) a state taxing authority;
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(III) the Department of Motor Vehicles;
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(IV) a county, municipality, or other entity with taxing authority;
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(V) a federal, state, or local law enforcement agency; or
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(VI) the agent or assignee of any entity listed in Subsections (1)(b) and (2)(b)(v)(B);
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(vi) the third party is administering a credit file monitoring subscription to which the
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consumer has subscribed; or
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(vii) the third party requests the credit report for the sole purpose of providing the
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consumer with a copy of the consumer's credit report or credit score upon the consumer's
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request.
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(3) Section
13-42-201
does not apply to:
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(a) a consumer reporting agency, the sole purpose of which is to resell credit
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information by assembling and merging information contained in the database of another
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consumer reporting agency and that does not maintain a permanent database of credit
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information from which a consumer's credit report is produced;
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(b) a check services or fraud prevention services company that issues:
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(i) reports on incidents of fraud; or
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(ii) authorizations for the purpose of approving or processing negotiable instruments,
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electronic funds transfers, or similar methods of payment; or
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(c) a deposit account information service company that issues reports concerning
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account closures based on fraud, substantial overdrafts, automated teller machine abuse, or
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similar information concerning a consumer to a requesting financial institution for the purpose
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of evaluating a consumer's request to create a deposit account.
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(4) Nothing in this chapter prohibits a person from obtaining, aggregating, or using
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information lawfully obtained from public records in a manner that does not otherwise violate
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this chapter.
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Section 6.
Section
13-42-204
is enacted to read:
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13-42-204. Fees for security freeze.
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(1) Except as provided in Subsection (2), a consumer reporting agency may charge a
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reasonable fee to a consumer for placing and temporarily removing a security freeze.
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(2) A consumer reporting agency may not charge a fee for placing or removing a
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security freeze if:
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(a) the consumer is a victim of identity fraud under Section
76-6-1102
; and
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(b) the consumer provides the consumer reporting agency with a valid copy of a police
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report or police case number documenting the identity fraud.
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Section 7.
Section
13-42-205
is enacted to read:
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13-42-205. Changes to information in a credit report subject to a security freeze.
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(1) If a credit report is subject to a security freeze, a consumer reporting agency shall
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notify the consumer who is the subject of the credit report within 30 days if the consumer
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reporting agency changes the consumer's:
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(a) name;
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(b) date of birth;
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(c) Social Security number; or
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(d) address.
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(2) (a) Notwithstanding Subsection (1), a consumer reporting agency may make
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technical modifications to information in a credit report that is subject to a security freeze
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without providing notification to the consumer.
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(b) Technical modifications under Subsection (2)(a) include:
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(i) the addition or subtraction of abbreviations to names and addresses; and
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(ii) transpositions or corrections of incorrect numbering or spelling.
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(3) When providing notice of a change of address under Subsection (1), the consumer
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reporting agency shall provide notice to the consumer at both the new address and the former
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address.
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Section 8.
Section
13-42-301
is enacted to read:
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Part 3. Protection of Personal Information
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13-42-301. Protection of personal information.
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(1) Except as allowed by other law, a person may not display a Social Security number
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in a manner or location that is likely to be open to public view.
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(2) The state, or a branch, agency, or political subdivision of the state, may not employ
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or contract for the employment of an inmate in any Department of Corrections facility or
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county jail in any capacity that would allow any inmate access to any other person's personal
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information.
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Section 9.
Section
13-42-401
is enacted to read:
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Part 4. Enforcement
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13-42-401. Enforcement.
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(1) The attorney general may enforce this chapter's provisions.
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(2) A person who violates this chapter's provisions is subject to a civil fine of:
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(a) no greater than $2,500 for a violation or series of violations concerning a specific
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consumer; and
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(b) no greater than $100,000 in the aggregate for related violations concerning more
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than one consumer.
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(3) In addition to the penalties provided in Subsection (2), the attorney general may
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seek injunctive relief to prevent future violations of this chapter in:
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(a) the district court located in Salt Lake City; or
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(b) the district court for the district in which resides a consumer who is the subject of a
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credit report on which a violation occurs.
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Section 10. Effective date.
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This bill takes effect on September 1, 2008.
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