ELIMINATION OF SECURITY FREEZE FEES                                                        H.B. 5094:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 5094 (as reported without amendment)

Sponsor:  Representative Joseph N. Bellino, Jr.

House Committee:  Financial Services

Senate Committee:  Banking and Financial Services

CONTENT

The bill 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 for a consumer or a protected consumer.

The Act requires a consumer reporting agency to place a security freeze on the credit report of a consumer or protected consumer, at the request of the consumer or his or her authorized representative. While a freeze is in place, the consumer reporting agency may not release the consumer's credit report or any information from it without the consumer's permission. A consumer may have his or her security freeze temporarily lifted, and a consumer reporting agency must remove the freeze at the request of the consumer or his or her authorized representative.

The Act allows a consumer reporting agency to charge a fee of up to $10 for placing, removing, or temporarily lifting a security freeze, unless a consumer or protected consumer has filed a police report of alleged identity theft. A consumer reporting agency also may not charge a fee to place or remove a security freeze for a protected consumer if he or she is under 16 years old and the agency has a credit report pertaining to the consumer. The bill would delete these provisions.

The bill would prohibit a consumer reporting agency from charging a fee for the placement, temporary lifting, or removal of a security freeze for a consumer or a protected consumer.

MCL 445.2521 et al.                                                 Legislative Analyst:  Stephen Jackson

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  2-28-18                                                    Fiscal Analyst:  Joe Carrasco

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.