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  • NJ A504
  • Requires consumer reporting agencies to place security freeze on consumer reports of protected consumers under certain circumstances.
Introduced
(1/27/2016)
In Committee
(1/27/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill requires consumer reporting agencies to place a security freeze on a protected consumer's credit report under certain circumstances. The bill defines protected consumer as an individual who is under the age of 16 years at the time a request for the placement of a security freeze is made; or an incapacitated person or a protected person for whom a guardian or conservator has been appointed. The bill allows the representatives of protected consumers to freeze their credit records, in order to protect them against identity theft or other misuse of their credit information. Specifically, the bill requires consumer reporting agencies to place a security freeze for a protected consumer within 30 days of receiving a security freeze request, if the consumer reporting agency receives a request from the protected consumer's representative for the placement of the security freeze. Additionally, the bill requires the protected consumer's representative to: submit the request to the consumer reporting agency at the address or other point of contact and in the manner specified by the consumer reporting agency; provide to the consumer reporting agency sufficient proof of identification of the protected consumer and the representative; and provide the consumer reporting agency sufficient proof of authority to act on behalf of the protected consumer. The bill provides that if a consumer reporting agency does not have a consumer report on record pertaining to a protected consumer when the consumer reporting agency receives a request, the consumer reporting agency shall create a consumer report for the protected consumer. The bill also establishes procedures for a protected consumer or protected consumer's representative to remove a security freeze. Under the bill, a protected consumer or a protected consumer's representative who wishes to remove a security freeze must submit a request for the removal of the security freeze to the consumer reporting agency at the address or other point of contact and in the manner specified by the consumer reporting agency and pay any fee, not to exceed $5, required by the consumer reporting agency to remove a security freeze. The bill also provides procedures for the removal of a security freeze by a protected consumer or a protected consumer's representative. The bill provides that unless a security freeze for a protected consumer is removed in accordance with the bill, a consumer reporting agency may not release the protected consumer's consumer report, any information derived from the protected consumer's consumer report, or any record created for the protected consumer and that the security freeze remains in effect until the protected consumer or the protected consumer's representative requests that the consumer reporting agency remove the security freeze. The bill also provides that a consumer reporting agency may remove a security freeze for a protected consumer or delete a consumer report of a protected consumer if the security freeze was placed or the consumer report was created based on a material misrepresentation of fact by the protected consumer or the protected consumer's representative. The bill provides that a person who willfully fails to comply with the requirements of the bill with respect to a protected consumer is liable to the protected consumer in an amount equal to the sum of: (1) any actual damages sustained by the protected consumer as a result of the failure or damages of not less than $100 and not more than $1,000; (2) such amount of punitive damages as the court may allow; and (3) in the case of any successful action to enforce any liability, the costs of the action together with reasonable attorneys' fees as determined by the court. The bill provides that a person who is negligent in failing to comply with the requirements of the bill with respect to any protected consumer is liable to that protected consumer in an amount equal to the sum of: (1) any actual damages sustained by the protected consumer as a result of the failure; and (2) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorneys' fees as determined by the court.
Not specified
Introduced, Referred to Assembly Consumer Affairs Committee  (on 1/27/2016)
 
 

Date Chamber Action Description
1/27/2016 A Introduced, Referred to Assembly Consumer Affairs Committee
Date Motion Yea Nay Other
None specified