Nebraska Updates Regarding Consumer Protection
Nebraska has enacted changes to two Acts for the protection of consumers all of which take effect on July 19, 2016 or 3 months following the adjournment of the legislative session.
Credit Report Protection Act
One of the changes to the act includes the definition of a protected consumer. It is now defined as: “an individual who is (a) under sixteen years of age at the time a request for the placement of a security freeze is made or (b) an incapacitated person for whom a guardian or guardian ad litem has been appointed.”
The Act allows a consumer to put a security freeze on his or her file via a request to the consumer reporting agency. A security freeze will be enacted if the requirements of the Act are met such as sufficient proof of identification. In order to remove the freeze, similar steps must be taken as outlined by the Act.
It should be noted that a freeze will not apply to the following situations: criminal record information, personal loss history information, fraud prevention/detection, employment screening or tenant screening.
Financial Data Protection And Consumer Notification of Date Security Breach Act of 2006
This Act has been amended to update the definition of encrypted. “Data shall not be considered encrypted if the confidential process or key was or is reasonably believed to have been acquired as a result of the breach of the security of the system.”
Furthermore, the Act now adds the following to the definition of personal information: usernames and email addresses in combination with a password or answer to a security question that would allow access to an online account.
Lastly, if notice of a breach of security is required to be sent to a Nebraska resident by the Act, notice must also be sent to the Attorney General.
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