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House passes identity-theft bill allowing consumers to freeze credit reports
Summary
Third substitute Senate Bill 71, allowing consumers to place a freeze on their credit reports and requiring credit bureaus to unfreeze within 15 minutes of consumer authorization, passed the House 71-0 on Feb. 24, 2006; sponsors said the law is preventive and includes a 30-month implementation delay for industry compliance.
SALT LAKE CITY — The Utah House unanimously passed third substitute Senate Bill 71 on Feb. 24, 2006, a consumer-protection measure that lets individuals request that credit-reporting agencies block the release of their credit reports except with a PIN or specific authorization.
Sponsor Representative Clark framed the bill as a preventive step against identity theft, citing national losses he summarized on the floor and calling the measure a pro-consumer structural change: “This bill is the first, I would say, preventive measure in trying to assure that this type of crime is significantly reduced.” He described how consumers would contact each credit bureau in writing and, typically via a PIN, prevent report issuance until they allowed it; the bureaus would have 15 minutes to remove the freeze once notified.
Members asked about online loan applications and operational details. Representative Wallace asked how online lending and immediate queries would work; the sponsor said consumers should unfreeze temporarily before applying and noted exceptions for ongoing creditor relationships (mortgage servicers and established business relationships). Representative Holdaway and others praised the bill as an important first step in combating identity theft.
The bill includes a 30-month delayed enactment to allow credit bureaus and affected businesses time to build systems to comply and contemplates modest consumer fees for the optional service. Following a motion to end debate, the House passed the bill, 71-0. The measure will be signed by the Speaker and transmitted to the Senate for the president’s signature.
