Bill

Bill > A3786


NJ A3786

Authorizes parent or guardian to place security freeze on child's consumer report.


summary

Introduced
05/23/2016
In Committee
05/23/2016
Crossed Over
Passed
Dead
01/08/2018

Introduced Session

2016-2017 Regular Session

Bill Summary

This bill authorizes a parent or legal guardian to place a security freeze on a child's consumer report. Specifically, the bill defines a consumer under 18 years of age as a "protected consumer." The security freeze would prohibit a consumer reporting agency (CRA) from releasing the report or any information in it without the express authorization of the protected consumer's parent or legal guardian, thereby aiding in the prevention of child identity theft. Under the bill, a security freeze may be placed on a protected consumer's report at the request of the protected consumer's parent or legal guardian, in the same manner as a consumer requesting a freeze on his or her own report under the "Identity Theft Prevention Act," P.L.2005, c.226 (C.56:11-44 et al.). A parent or legal guardian would be required to provide a CRA with sufficient proof of authority to act on behalf of a protected consumer. If the CRA does not have any information in its files pertaining to the protected consumer at the time it receives a request, the CRA would create a record for the protected consumer and place a security freeze on it. The record would consist of a compilation of information created by the CRA that identifies the protected consumer. A CRA would be prohibited from creating or using the record to consider the protected consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. The CRA would send a written confirmation of the security freeze to the protected consumer's parent or legal guardian within five business days of placing the freeze and provide her or him with a unique personal identification number or password to be used when providing authorization for the release of the protected consumer's credit for a specific party or period of time. The bill provides that a security freeze is to remain in place until the protected consumer's parent or legal guardian requests that the security freeze be removed or the protected consumer reaches 18 years of age. A CRA would remove the security freeze within three business days of the request, upon receiving: (1) proper identification and sufficient proof of authority from the protected consumer's parent or legal guardian to act on behalf of the protected consumer; and (2) the unique personal identification number or password provided by the CRA. Under current law, a CRA is required to place a security freeze on a consumer report no later than five business days after receiving a written request, and is prohibited from charging any fee to place the security freeze on a consumer report. A CRA is authorized to charge a reasonable fee, not to exceed $5, for removing or temporarily lifting a security freeze on that consumer report. A person may be charged a reasonable fee, not to exceed $5, for failing to retain the original personal identification number provided by the CRA. These provisions would remain unchanged.

AI Summary

This bill authorizes a parent or legal guardian to place a security freeze on a child's consumer report, known as a "protected consumer" under the bill. The security freeze prohibits a consumer reporting agency (CRA) from releasing the report or any information in it without the express authorization of the protected consumer's parent or legal guardian, helping to prevent child identity theft. The bill outlines the process for a parent or legal guardian to request a security freeze, lift a freeze temporarily, and have the freeze removed, including requirements for the CRA to confirm identity and authority. The existing provisions of the "Identity Theft Prevention Act" regarding fees and timelines for placing, removing, and temporarily lifting a security freeze would remain unchanged under this bill.

Committee Categories

Business and Industry

Sponsors (3)

Last Action

Introduced, Referred to Assembly Consumer Affairs Committee (on 05/23/2016)

bill text


bill summary

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