Sec. 36a-701a. Consumer security freezes on credit report. Timing. Disclosure of report to third party during freeze. Procedures for freeze. Refusal by credit rating agency to implement freeze. Except
Sec. 36a-701a. Consumer security freezes on credit report. Timing. Disclosure
of report to third party during freeze. Procedures for freeze. Refusal by credit
rating agency to implement freeze. Exceptions. (a) Any consumer may submit a written request, by certified mail or such other secure method as authorized by a credit rating
agency, to a credit rating agency to place a security freeze on such consumer's credit
report. Such credit rating agency shall place a security freeze on a consumer's credit
report not later than five business days after receipt of such request. Not later than ten
business days after placing a security freeze on a consumer's credit report, such credit
rating agency shall send a written confirmation of such security freeze to such consumer
that provides the consumer with a unique personal identification number or password to
be used by the consumer when providing authorization for the release of such consumer's
report to a third party or for a period of time.
(b) In the event such consumer wishes to authorize the disclosure of such consumer's credit report to a third party, or for a period of time, while such security freeze is
in effect, such consumer shall contact such credit rating agency and provide: (1) Proper
identification, (2) the unique personal identification number or password described in
subsection (a) of this section, and (3) proper information regarding the third party who
is to receive the credit report or the time period for which the credit report shall be
available. Any credit rating agency that receives a request from a consumer pursuant
to this section shall lift such security freeze not later than three business days after receipt
of such request.
(c) Except for the temporary lifting of a security freeze as provided in subsection
(b) of this section, any security freeze authorized pursuant to the provisions of this
section shall remain in effect until such time as such consumer requests such security
freeze to be removed. A credit rating agency shall remove such security freeze not later
than three business days after receipt of such request provided such consumer provides
proper identification to such credit rating agency and the unique personal identification
number or password described in subsection (a) of this section at the time of such request
for removal of the security freeze.
(d) Any credit rating agency may develop procedures to receive and process such
request from a consumer to temporarily lift or remove a security freeze on a credit report
pursuant to subsection (b) of this section. Such procedures, at a minimum, shall include,
but not be limited to, the ability of a consumer to send such temporary lift or removal
request by electronic mail, letter or facsimile.
(e) In the event that a third party requests access to a consumer's credit report that
has such a security freeze in place and such third party request is made in connection
with an application for credit or any other use and such consumer has not authorized
the disclosure of such consumer's credit report to such third party, such third party may
deem such credit application as incomplete.
(f) Any credit rating agency may refuse to implement or may remove such security
freeze if such agency believes, in good faith, that: (1) The request for a security freeze
was made as part of a fraud that the consumer participated in, had knowledge of, or that
can be demonstrated by circumstantial evidence, or (2) the consumer credit report was
frozen due to a material misrepresentation of fact by the consumer. In the event any
such credit rating agency refuses to implement or removes a security freeze pursuant
to this subsection, such credit rating agency shall promptly notify such consumer in
writing of such refusal not later than five business days after such refusal or, in the case
of a removal of a security freeze, prior to removing the freeze on the consumer's credit
report.
(g) Nothing in this section shall be construed to prohibit disclosure of a consumer's
credit report to: (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 purpose 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
subsection (b) of this section for the purpose of facilitating the extension of credit or other
permissible use; (3) any person acting pursuant to a court order, warrant or subpoena; (4)
any person for the purpose of using such credit information to prescreen as provided
by the federal Fair Credit Reporting Act; (5) any person for the sole purpose of providing
a credit file monitoring subscription service to which the consumer has subscribed; (6)
a credit rating agency for the sole purpose of providing a consumer with a copy of
his or her credit report upon the consumer's request; or (7) a federal, state or local
governmental entity, including a law enforcement agency, or court, or their agents or
assignees pursuant to their statutory or regulatory duties. For purposes of this subsection,
"reviewing the account" includes activities related to account maintenance, monitoring,
credit line increases and account upgrades and enhancements.
(h) The following persons shall not be required to place a security freeze on a consumer's credit report, provided such persons shall be subject to any security freeze
placed on a credit report by another credit rating agency: (1) A check services or fraud
prevention services company that reports on incidents of fraud or issues authorizations
for the purpose of approving or processing negotiable instruments, electronic fund transfers or similar methods of payment; (2) a deposit account information service company
that issues reports regarding account closures due to fraud, substantial overdrafts, automated teller machine abuse, or similar information regarding a consumer to inquiring
banks or other financial institutions for use only in reviewing a consumer request for a
deposit account at the inquiring bank or financial institution; or (3) a credit rating agency
that: (A) Acts only to resell credit information by assembling and merging information
contained in a database of one or more credit reporting agencies; and (B) does not
maintain a permanent database of credit information from which new credit reports are
produced.
(i) A credit rating agency may charge a fee of not more than ten dollars to a consumer
for each security freeze, removal of such freeze or temporary lift of such freeze for a
period of time, and a fee of not more than twelve dollars for a temporary lift of such
freeze for a specific party.
(j) An insurer, as defined in section 38a-1, may deny an application for insurance
if an applicant has placed a security freeze on such applicant's credit report and fails to
authorize the disclosure of such applicant's credit report to such insurer pursuant to the
provisions of subsection (b) of this section.
(P.A. 05-148, S. 2; 05-288, S. 230.)
History: P.A. 05-148 effective January 1, 2006; P.A. 05-288 made a technical change in Subsec. (f), effective January
1, 2006.