§ 2483a. Security freeze for protected consumer; time in effect
(a) A consumer reporting agency shall place a security freeze for a protected consumer if the protected consumer's representative submits a request, including proper authority, to the address and in the manner specified by the consumer reporting agency.
(b) If a consumer reporting agency does not have a file that pertains to a protected consumer when the consumer reporting agency receives a request described in subsection (a) of this section, the consumer reporting agency shall create a record for the protected consumer.
(c) The credit reporting agency shall:
(1) place a security freeze not later than 30 days after the date the agency receives a request pursuant to subsection (a) of this section; and
(2) not later than 10 business days after placing the freeze:
(A) send a written confirmation of the security freeze to the protected consumer or the protected consumer's representative; and
(B) provide a unique personal identification number or password, other than a Social Security number, or another method of authentication that is equally or more secure than a PIN or password, to be used to authorize the release of the protected consumer's credit for a specific party, parties, or period of time.
(d)(1) A credit reporting agency shall lift temporarily a protected consumer security freeze to allow access by a specific party or parties or for a specific period of time, upon a request from the protected consumer's representative.
(2) The protected consumer's representative shall submit the request to the address and in the manner specified by the consumer reporting agency.
(3) The request shall include:
(A) proper authority; and
(B) the unique personal identification number, password, or other method of authentication provided by the credit reporting agency pursuant to subsection (c) of this section.
(e) A credit reporting agency may develop procedures involving the use of telephone, fax, the Internet, or other electronic media to receive and process a request to lift temporarily a freeze on a credit report pursuant to subsection (d) of this section in an expedited manner.
(f) A credit reporting agency that receives a request to lift temporarily a freeze on a credit report pursuant to subsection (d) of this section shall comply with the request not later than three business days after receiving the request.
(g) A credit reporting agency shall remove or lift temporarily a freeze placed on a protected consumer's credit report only in the following cases:
(1) Upon request, pursuant to subsection (d) or (j) of this section.
(2) If the protected consumer's credit report was frozen due to a material misrepresentation of fact by the protected consumer or by his or her representative. If a credit reporting agency intends to remove a freeze upon a protected consumer's credit report pursuant to this subdivision, the credit reporting agency shall notify the protected consumer and his or her representative in writing prior to removing the freeze on the consumer's credit report.
(h) If a third party requests access to a credit report on which a protected consumer security freeze is in effect and this request is in connection with an application for credit or any other use and neither the consumer subject to the protected consumer security freeze nor the protected consumer's representative allows the credit report to be accessed for that specific party or period of time, the third party may treat the application as incomplete.
(i) A credit reporting agency that receives a request to place a protected consumer security freeze pursuant to this section shall disclose to the protected consumer and his or her representative the process of placing and lifting temporarily a security freeze and the process for allowing access to information from the protected consumer's credit report for a specific party, parties, or period of time while the protected consumer security freeze is in place.
(j)(1) A protected consumer security freeze shall remain in place until the credit reporting agency receives a request to remove the freeze from:
(A) the protected consumer's representative; or
(B) the consumer who is subject to the protected consumer security freeze.
(2) A credit reporting agency shall remove a protected consumer security freeze within three business days after receiving a proper request for removal.
(3) The party requesting the removal of a protected consumer security freeze pursuant to subdivision (1) of this subsection shall submit the request to the address and in the manner specified by the consumer reporting agency.
(4) The request shall include:
(A) proper authority; and
(B) the unique personal identification number, password, or other method of authentication provided by the credit reporting agency pursuant to subsection (c) of this section.
(k) A credit reporting agency shall require proper identification of the person making a request to place or remove a protected consumer security freeze.
(l) The provisions of this section, including the protected consumer security freeze, do not apply to the use of a consumer report by the following:
(1) A person, or the person's subsidiary, affiliate, agent, or assignee with which the protected consumer has or, prior to assignment, had an account, contract, or debtor-creditor relationship for the purposes of reviewing the account or collecting the financial obligation owing for the account, contract, or debt, or extending credit to a consumer with a prior or existing account, contract, or debtor-creditor relationship, subject to the requirements of section 2480e of this title. As used in this subdivision, "reviewing the account" includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.
(2) A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom access has been granted under subsection (d) of this section for purposes of facilitating the extension of credit or other permissible use.
(3) Any person acting pursuant to a court order, warrant, or subpoena.
(4) The Office of Child Support when investigating a child support case pursuant to Title IV-D of the Social Security Act (42 U.S.C. §§ 651-669b) and 33 V.S.A. § 4102.
(5) The Economic Services Division of the Department for Children and Families or the Department of Vermont Health Access or its agents or assignees acting to investigate welfare or Medicaid fraud.
(6) The Department of Taxes, municipal taxing authorities, or the Department of Motor Vehicles or any of their agents or assignees acting to investigate or collect delinquent taxes or assessments, including interest and penalties or unpaid court orders, or to fulfill any of their other statutory or charter responsibilities.
(7) A person's use of credit information for the purposes of prescreening as provided by the federal Fair Credit Reporting Act.
(8) Any person for the sole purpose of providing a credit file monitoring subscription service to which the consumer has subscribed.
(9) A credit reporting agency for the sole purpose of providing a consumer with a copy of his or her credit report upon the consumer's request.
(10) Any property and casualty insurance company for use in setting or adjusting a rate or underwriting for property and casualty insurance purposes. (Added 2017, No. 179 (Adj. Sess.), § 5, eff. Jan. 1, 2019.)