SENIOR ASSEMBLY PROPOSAL NO. 25

INTRODUCED BY SENIOR ASSEMBLY MEMBER SHONTZ

LEGISLATIVE COUNSEL'S DIGEST

AP 25: CONSUMER CREDIT REPORTS.

EXISTING STATE AND FEDERAL LAW DEFINE CONSUMER REPORTING AGENCIES AND REGULATE THEIR ACTIVITIES. UNDER EXISTING CALIFORNIA LAW, A PERSON IS PERMITTED TO PLACE A “SECURITY FREEZE” ON HIS OR HER CREDIT REPORT IN ORDER TO RESTRICT ACCESS TO THE INFORMATION CONTAINED IN IT WITHOUT THE EXPRESS AUTHORIZATION OF THAT PERSON. UNDER EXISTING CALIFORNIA LAW, A CONSUMER CREDIT REPORTING AGENCY IS PERMITTED TO CHARGE A PERSON WHO IS 65 YEARS OF AGE OR OLDER A FEE NOT TO EXCEED $5 TO PLACE A SECURITY FREEZE, TO REMOVE A SECURITY FREEZE, OR TO LIFT THE SECURITY FREEZE TEMPORARILY.

THIS MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION THAT WOULD AMEND CALIFORNIA LAW TO PROHIBIT A CONSUMER CREDIT REPORTING AGENCY FROM CHARGING A PERSON WHO IS 65 YEARS OF AGE OR OLDER A FEE FOR PLACING A SECURITY FREEZE ON HIS OR HER CREDIT REPORT.

VOTE: MAJORITY.

AP 25: RELATING TO CONSUMER CREDIT REPORTS

WHEREAS, ACCORDING TO STATISTICS FROM THE FEDERAL TRADE COMMISSION, SENIORS ACCOUNT FOR A DISPROPORTIONATE SHARE OF IDENTITY THEFTS, ARE FREQUENTLY TARGETED FOR CREDIT REPAIR SCAMS, AND ARE PARTICULARLY VULNERABLE IN THESE REGARDS; AND

WHEREAS, ONE OF THE BEST WAYS THAT A SENIOR CAN PROTECT HIS OR HER CREDIT IS TO PLACE A SECURITY FREEZE ON HIS OR HER CREDIT REPORT; AND

WHEREAS, IN 2007, THE STATE OF WASHINGTON AMENDED ITS LAWS TO PROHIBIT A CONSUMER CREDIT REPORTING AGENCY FROM CHARGING A PERSON WHO IS 65 YEARS OF AGE OR OLDER A FEE FOR PLACING A SECURITY FREEZE ON HIS OR HER CREDIT REPORT; AND

WHEREAS, SECTION 1785.11.2 OF THE CIVIL CODE OF THE STATE OF CALIFORNIA PERMITS A CONSUMER CREDIT REPORTING AGENCY TO CHARGE A PERSON WHO IS 65 YEARS OF AGE OR OLDER A FEE OF $5 TO PLACE A SECURITY FREEZE ON HIS OR HER CREDIT REPORT; AND

WHEREAS, CALIFORNIA SENIORS ARE DESERVING OF THE SAME PROTECTION AS IS GRANTED TO SENIORS IN THE STATE OF WASHINGTON; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR ASSEMBLY AND THE SENIOR SENATE, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2011 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT SECTION 1785.11.2 OF THE CIVIL CODE OF THE STATE OF CALIFORNIA BE AMENDED TO PROHIBIT A CONSUMER CREDIT REPORTING AGENCY FROM CHARGING A PERSON WHO IS 65 YEARS OF AGE OR OLDER A FEE FOR PLACING A SECURITY FREEZE ON HIS OR HER CREDIT REPORT; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE LEGISLATURE AND THE GOVERNOR OF THE STATE OF CALIFORNIA TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE SPEAKER OF THE ASSEMBLY, THE PRESIDENT PRO TEMPORE OF THE SENATE, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.

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RN 11 18057