Banking Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-6403

Title:

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

Vote Date:

3/5/2015

Vote Action:

Joint Favorable

PH Date:

2/19/2015

File No.:

SPONSORS OF BILL:

Rep. Jason Rojas, Sen. John Kissel, Banking committee

REASONS FOR BILL:

Child identity theft has become an increasing problem in recent years. This bill would provide additional safeguards against child identity theft by allowing parents to “freeze” their child's credit. In doing so, it will be impossible for lines of credit to be taken out under the child's social security number until their credit is “unfrozen.” Under current Connecticut state law, there is no provision to allow parents to do this.

RESPONSE FROM ADMINISTRATION/AGENCY:

Bruce Adams, Acting Commissioner, Department of Banking

The Department of Banking supports the bill in concept, but cautions that the proposal may have unintended consequences. The bill does not specify whether the parent or guardian can lift the security freeze. There is concern that in a situation where parents have conflicting interests, one parent may be able to place a freeze and the other would lift the freeze, thereby compromising the integrity of the child's credit.

NATURE AND SOURCES OF SUPPORT:

Rep. Jason Rojas, 9th district

Parents should have access to tools that allow them to protect their children's' financial future. Recent security breaches only highlight the need for greater protections, especially for children whose information may be unintentionally compromised.

Sen. John Kissel, 7th district

The proposed legislation will provide additional safeguards for parents who wish to protect their child's identity. Other states including Delaware, Oregon, Wisconsin and Maryland have already passed legislation on this issue.

Additional Testimony

Testimony was offered by the following people in support of the need for a law to protect children's credit by allowing parents to freeze their child's credit report.

Todd Collen, parent

Connecticut Bankers Association

NATURE AND SOURCES OF OPPOSITION:

None expressed. (For House Bill 6403).

Reported by: Sara LeMaster

Date: 03/19/2015