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367.365
Consumer's election regarding security freeze on consumer report -Subsequent access -- Duties of consumer reporting agency -- Duration of
security freeze -- Inapplicability to certain consumer reports -- Permitted
charges for security freeze -- Changes to official consumer report information - Penalties for section's violation.
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(a)
A consumer may elect to place a security freeze on the consumer's consumer
report by written request, sent by certified mail, that includes clear and proper
identification, to a consumer reporting agency at an address designated by the
consumer reporting agency to receive such request. A consumer reporting
agency shall place a security freeze on a consumer's consumer report no later
than ten (10) business days after receiving a written request for the security
freeze from the consumer.
(b) When a security freeze is in place, information from a consumer's consumer
report shall not be released to a third party without prior express authorization
from the consumer. This subsection does not prevent a consumer reporting
agency from advising a third party that a security freeze is in effect with
respect to the consumer's consumer report.
The consumer reporting agency shall, no later than ten (10) business days after the
date the agency receives the request for a security freeze, provide the consumer with
a unique personal identification number or password to be used by the consumer
when providing authorization for the access to his or her credit file for a specific
period of time. In addition, the consumer reporting agency shall simultaneously
provide to the consumer in writing the process of placing, removing, and
temporarily lifting a security freeze and the process for allowing access to
information from the consumer's credit file for a specific period while the security
freeze is in effect.
A consumer may request in writing a replacement personal identification number or
password. The request shall comply with the requirements for requesting a security
freeze under subsection (1) of this section. The consumer reporting agency shall, not
later than the tenth business day after the date the agency receives the request for a
replacement personal identification number or password, provide the consumer with
a new, unique personal identification number or password to be used by the
consumer instead of the number or password that was provided under subsection (2)
of this section.
If a third party requests access to a consumer report on which a security freeze is in
effect, and this request is in connection with an application for credit, the third party
may treat the application as incomplete.
If the consumer wishes to allow his consumer report or credit score to be accessed
for a specific period of time while a freeze is in place, the consumer shall contact
the consumer reporting agency and request that the freeze be temporarily lifted and
provide the following:
(a) Clear and proper identification;
(b) The unique personal identification number or password provided by the
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consumer reporting agency pursuant to subsection (2) or (3) of this section;
and
(c) The proper information regarding the time period for which the report shall be
available to users of the consumer report.
A consumer reporting agency that receives a request from a consumer to
temporarily lift a freeze on a consumer report pursuant to subsection (5) of this
section shall comply with the request no later than three (3) business days after
receiving the request. A consumer reporting agency may develop procedures
involving the use of telephone, fax, the Internet, or other electronic media to receive
and process a request from a consumer to temporarily lift a freeze on a consumer
report or credit score pursuant to subsection (5) of this section in an expedited
manner.
A consumer reporting agency shall remove or temporarily lift a freeze placed on a
consumer's consumer report only in the following cases:
(a) Upon consumer request as provided in this section; or
(b) If the consumer's consumer report was frozen due to a material
misrepresentation of fact by the consumer. If a consumer reporting agency
intends to remove a freeze upon a consumer’s consumer report pursuant to
this paragraph, the consumer reporting agency shall notify the consumer in
writing prior to removing the freeze on the consumer's consumer report.
A security freeze shall remain in place until the consumer requests that the security
freeze be removed, but no longer than seven (7) years from the date the security
freeze was put in place. A consumer reporting agency shall remove a security freeze
within three (3) business days of receiving a request for removal from the consumer,
who provides both of the following:
(a) Clear and proper identification; and
(b) The unique personal identification number or password provided by the
consumer reporting agency.
A security freeze does not apply to a consumer report provided to:
(a) A federal, state, or local governmental entity, including a law enforcement
agency, or court, or their agents or assigns;
(b) A private collection agency for the sole purpose of assisting in the collection
of an existing debt of the consumer who is the subject of the consumer report
requested;
(c) A person or entity, or a subsidiary, affiliate, or agent of that person or entity,
or an assignee of a financial obligation owing by the consumer to that person
or entity, or a prospective assignee of a financial obligation owing by the
consumer to that person or entity in conjunction with the proposed purchase of
the financial obligation, with which the consumer has or had prior to
assignment an account or contract, including a demand deposit account, or to
whom the consumer issued a negotiable instrument, for the purposes of
reviewing the account or collecting the financial obligation owing for the
account, contract, or negotiable instrument. For purposes of this paragraph,
"reviewing the account" includes activities related to account maintenance,
monitoring, credit line increases, and account upgrades and enhancements;
(d) A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to
whom access has been granted under subsection (5) of this section for the
purposes of facilitating the extension of credit;
(e) A person, for the purposes of prescreening as provided by the federal Fair
Credit Reporting Act;
(f) A consumer reporting agency for the purposes of providing a consumer with a
copy of his own report on his request;
(g) A child support enforcement agency;
(h) A consumer reporting agency that acts only as a reseller of credit information
by assembling and merging information contained in the database of another
consumer reporting agency or multiple credit reporting agencies and does not
maintain a permanent database of credit information from which new
consumer reports are produced. However, a consumer reporting agency acting
as a reseller shall honor any security freeze placed on a consumer report by
another consumer reporting agency;
(i) A check services or fraud prevention services company, which issues reports
on incidents of fraud or authorizations for the purpose of approving or
processing negotiable instruments, electronic funds transfers, or similar
methods of payments;
(j) A deposit account information service company, which issues reports
regarding account closures due to fraud, substantial overdrafts, ATM abuse, or
similar negative 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;
(k) Any person or entity using a consumer report in preparation for a civil or
criminal action, or an insurance company in investigation of a claim; or
(l) Any insurance company for setting or adjusting a rate or underwriting for
property and casualty insurance purposes.
(10) A consumer reporting agency may impose a reasonable charge on a consumer for
initially placing, temporarily lifting, or removing a security freeze on a consumer
file. The amount of the charge may not exceed ten dollars ($10). On January 1 of
each year, a consumer reporting agency may increase the charge for placing a
security alert. The increase shall be based proportionally on changes to the
Consumer Price Index for All Urban Consumers as determined by the United States
Department of Labor with fractional changes rounded to the nearest twenty-five
cents ($0.25). An exception shall be allowed whereby the consumer will be charged
zero dollars by the consumer reporting agency placing the security freeze if the
consumer is a victim of identity theft and, upon the request of the consumer
reporting agency, provides the consumer reporting agency with a valid police report.
(11) If a security freeze is in place, a consumer reporting agency shall not change any of
the following official information in a consumer report without sending a written
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confirmation of the change to the consumer within thirty (30) days of the change
being posted to the consumer's file:
(a) Name;
(b) Date of birth;
(c) Social Security number; and
(d) Address.
Written confirmation is not required for technical modifications of a consumer's
official information, including name and street abbreviations, complete spellings, or
transposition of numbers or letters. In the case of an address change, the written
confirmation shall be sent to both the new address and to the former address.
Any person who willfully fails to comply with any requirement imposed under this
section with respect to any consumer is liable to that consumer in an amount equal
to the sum of:
(a) Any actual damages sustained by the consumer as a result of the failure;
(b) Any liquidated damages of not less than one hundred dollars ($100) and not
more than one thousand dollars ($1,000);
(c) Any punitive damages as the court may allow; and
(d) In the case of any successful action to enforce any liability under this section,
the costs of the action together with reasonable attorney's fees as determined
by the court.
Any person, other than the named individual or individuals in the report, who
obtains a consumer report, requests a security freeze, requests the temporary lift of a
freeze, or the removal of a security freeze from a consumer reporting agency under
false pretenses or in an attempt to violate federal or state law shall be liable to the
consumer reporting agency for actual damages sustained by the consumer reporting
agency or one thousand dollars ($1,000), whichever is greater.
Any person who is negligent in failing to comply with any requirement imposed
under this section with respect to any consumer is liable to that consumer in an
amount equal to the sum of:
(a) Any actual damages sustained by the consumer as a result of the failure; and
(b) In the case of any successful action to enforce any liability under this section,
the costs of the action together with reasonable attorney's fees as determined
by the court.
Nothing in KRS 367.363 to 367.365 shall be construed to limit or restrict the
exercise of powers or the performance of the duties of the Attorney General
authorized under any other provision of law to bring or seek redress for persons that
violate KRS 367.363 to 367.365.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 42, sec. 3, effective July 12, 2006.
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