SENATE BILL 701
47th legislature - STATE OF NEW MEXICO - first session, 2005
INTRODUCED BY
Leonard Lee Rawson
AN ACT
RELATING TO CONSUMER PROTECTION; ALLOWING CONSUMERS TO PUT SECURITY ALERTS OR FREEZES ON THEIR CREDIT REPORTS OR HAVE INFORMATION IN CREDIT REPORTS BLOCKED IF THEIR IDENTITY MAY HAVE BEEN USED WITHOUT THEIR CONSENT; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 56-3-1 NMSA 1978 (being Laws 1969, Chapter 259, Section 1, as amended) is amended to read:
"56-3-1. DEFINITIONS.--As used in [this act] Chapter 56, Article 3 NMSA 1978:
A. "credit bureau" means any business engaged in furnishing credit information about consumers; [and]
B. "consumer" means any natural person in the general consuming public who seeks or is seeking credit for personal, family or household purposes; and
C. "identity theft" means willfully obtaining, recording or transferring personal or financial information of another person without that person's authorization or consent and with the intent to defraud that person or a third person."
Section 2. A new section of Chapter 56, Article 3 NMSA 1978 is enacted to read:
"[NEW MATERIAL] SECURITY ALERT.--
A. A consumer may request that a credit bureau place a "security alert" in the consumer's credit report that will warn anyone receiving information in the report that the consumer's identity may have been used without the consumer's consent.
B. A request for a security alert may be made by mail, telephone or in person.
C. A security alert shall be maintained for ninety days, at which time the consumer is entitled to a free copy of the consumer's credit report.
D. A recipient of a credit report containing a security alert shall take reasonable steps, including contacting the consumer at a telephone number the consumer may have provided to the credit bureau for the security alert, to verify the consumer's identity prior to lending money, extending credit or completing the purchase, lease or rental of goods or services.
E. Upon receiving a consumer's request for a security alert, a credit bureau shall provide notice to the consumer that the security alert may prevent credit, loans and services from being approved in the consumer's name without the consumer's consent, but that the security alert may also delay or interfere with the timely approval of any subsequent request or application the consumer makes regarding a new loan, credit, a mortgage, insurance, rental housing, employment, an investment, a license, a cellular phone, utilities, a digital signature, an internet credit card transaction, extension of credit at a point of sale or another service."
Section 3. A new section of Chapter 56, Article 3 NMSA 1978 is enacted to read:
"[NEW MATERIAL] SECURITY FREEZE.--
A. A consumer may request that a credit bureau place a "security freeze" on the consumer's credit report that will prohibit a credit bureau from releasing information in the consumer's credit report without the consumer's express authorization.
B. A request for a security freeze shall be made in writing by certified mail.
C. When a security freeze is placed on a consumer's credit report, the credit bureau shall provide the consumer with a personal identification number or password to use if the consumer chooses to remove the freeze or to authorize the release of the credit report to a specific person or for a specific period of time after the freeze is in place. To provide authorization to release the report the consumer must contact the credit bureau and provide the personal identification number or password, verification of the consumer's identity and information regarding the person who is to receive the credit report or the period of time for which the credit report can be released. A credit bureau shall authorize the release of the consumer's credit report within three business days of receiving the authorizing information.
D. Upon receiving a consumer's request for a security freeze, a credit bureau shall provide notice to the consumer that using a security freeze to control who gets access to the personal and financial information in a credit report may also delay, interfere with or prohibit the timely approval of any subsequent request or application the consumer makes regarding a new loan, credit, a mortgage, insurance, rental housing, employment, an investment, a license, a cellular phone, utilities, a digital signature, an internet credit card transaction, extension of credit at a point of sale or another service."
Section 4. A new section of Chapter 56, Article 3 NMSA 1978 is enacted to read:
"[NEW MATERIAL] BLOCKING FRAUDULENT INFORMATION.--If a consumer alleges identity theft and provides to a credit bureau a copy of a valid police report describing the identity theft circumstances, the following shall apply:
A. information the consumer lists as allegedly the result of identity theft shall be promptly blocked by the credit bureau so that it cannot be contained in a credit report. That information shall be unblocked only if:
(1) the information provided by the consumer is a material misrepresentation of the facts;
(2) the consumer agrees that the information is blocked in error; or
(3) the consumer knowingly received goods, services or money as a result of blocked information;
B. if blocked information is unblocked pursuant to Subsection A of this section, the consumer shall be promptly notified by the credit bureau; and
C. the consumer shall have a right to receive from the credit bureau, free of charge and upon request, a copy of the consumer's credit report each month for up to twelve consecutive months."
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