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Senate Bill 60 |
Senate Author: Nelson |
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Effective: 1-1-14 |
House Sponsor: Giddings |
Senate Bill 60 amends the Business & Commerce Code to require a consumer reporting agency to place a security freeze on the consumer file of a protected consumer, defined as a resident of Texas who is younger than 16 years of age, if the agency receives a licit request from the protected consumer's representative for the placement of the security freeze. If the agency does not have a consumer file for the protected consumer, the agency must create a record for the protected consumer and subsequently place a security freeze on the record within a certain time frame. The bill prohibits the creation or use of the record in considering the protected consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living for certain credit-related purposes.
Senate Bill 60 prohibits a consumer reporting agency from releasing any consumer report relating to the protected consumer, any information derived from the report, or any record created for the protected consumer unless the security freeze is removed. The bill sets out conditions and procedures for removal of a freeze by a protected consumer or the protected consumer's representative and authorizes an agency to charge a reasonable fee of up to $10 for each placement or removal of a freeze except under certain circumstances. The bill authorizes an agency to remove a security freeze or delete a record if the security freeze was placed or the record was created based on a material misrepresentation of fact by the protected consumer or the protected consumer's representative. The exclusive remedy for a violation of the bill's provisions is a suit filed by the attorney general. The bill exempts certain persons and entities from its prohibitions against the use of a protected consumer's consumer report or record.