OLR Bill Analysis

HB 6403

AN ACT CONCERNING SECURITY FREEZES ON CHILDREN'S CREDIT REPORTS.

SUMMARY:

This bill allows a minor's parent or legal guardian to place a security freeze on the minor's credit report. To do so, the parent or guardian must provide the credit rating agency with:

1. a written request by certified mail or other secure method authorized by the rating agency and

2. proper identification and sufficient proof of authority to act for the minor, such as a court order, written notarized statement signed by the parent or guardian expressly describing his or her authority to act, or a certified or original copy of the minor's birth certificate.

EFFECTIVE DATE: October 1, 2015

BACKGROUND

Security Freezes

The law allows a consumer to request that a credit rating agency place a security freeze on his or her credit report. A freeze prohibits the agency from releasing information in the credit report without the consumer's express authorization. The agency provides the consumer with a personal identification number that the consumer can use to authorize (1) release of his or her report for a period of time or a specific purpose or (2) termination of the freeze.

Credit rating agencies may charge up to $10 for a freeze, removal of one, or temporarily lifting one. They may charge up to $12 to temporarily lift a freeze for a specific party.

COMMITTEE ACTION

Banking Committee

Joint Favorable

Yea

17

Nay

0

(03/05/2015)