PROHIBIT SECURITY FREEZE FEES

House Bill 5094 as reported from committee

Sponsor:  Rep. Joseph N. Bellino, Jr.

Committee:  Financial Services

Complete to 12-6-17                                                              (Enacted as Public Act 76 of 2018)

SUMMARY:

House Bill 5094 would amend the Security Freeze Act to prohibit a consumer reporting agency from charging a fee for placing, temporarily lifting, or removing a security freeze on a consumer’s credit report.

Under current law, a consumer reporting agency is allowed to charge a fee of up to $10 to place, temporarily lift, or remove a credit report security freeze. The fee must be waived if the consumer has filed a police report alleging identity theft.

The bill would remove the statutory authorization for these fees and would prohibit consumer reporting agencies from charging them.

MCL 445.2521, et al.

FISCAL IMPACT:

House Bill 5094 would not have a fiscal impact on any units of state or local government.

POSITIONS:

The Michigan Credit Union League supports the bill. (10-25-17)

Consumer Data Industry Associates opposes the bill. (10-25-17)

                                                                                        Legislative Analyst:   E. Best

                                                                                               Fiscal Analysts:   Marcus Coffin

                                                                                                                           Ben Gielzcyk

This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.