Illinois Modifies Provisions Regarding Consumer Fraud and Deceptive Business Practices Act
by: Lee Greenberg
The state of Illinois recently modified Section 2MM of the Consumer Fraud and Deceptive Business Practices Act in House Bill 3380. The new legislation takes effect on June 1, 2014.
Under the new law, the following persons may request that a security freeze be placed on the credit report of a disabled person:
- A guardian of the disabled person that is the subject of the request, appointed under Article XIa of the Probate Act of 1975; and
- An agent of the disabled person that is the subject of the request, under a written durable power of attorney that complies with the Illinois Power of Attorney Act.
In addition, the following persons may request that a security freeze be placed on the credit report of a minor:
- A guardian of the minor that is the subject of the request, appointed under Article XI of the Probate Act of 1975;
- A parent of the minor that is the subject of the request; and
- A guardian appointed under the Juvenile Court Act of 1987 for a minor under the age of 18 who is the subject of the request or, with a court order authorizing the guardian consent power, for a youth who is the subject of the request who has attained the age of 18, but who is under the age of 21.
The new law further states that a security freeze for a minor may not be temporarily lifted. The law does not require a consumer reporting agency to provide to a minor or a parent or guardian of a minor on behalf of the minor a unique personal identification number, password, or similar device to authorize the consumer reporting agency to release information from a minor.
A security freeze will remain in place until the consumer or person authorized to act on behalf of the minor or disabled person that is the subject of the security freeze requests that the security freeze be removed.
A consumer reporting agency must require proper identification of the person making a request to place or remove a security freeze and may require proper identification and proper authority from the person making the request to place or remove a freeze on behalf of the disabled person or minor.
Lastly, the new law added a definition for “proper authority.” Proper authority means documentation that shows that a parent, guardian, or agent has authority to act on behalf of a minor or disabled person. Proper authority includes an order issued by a court of law that shows that a guardian has authority to act on behalf of a minor or disabled person, a written, notarized statement signed by a parent that expressly describes the authority of the parent to act on behalf of the minor, or a durable power of attorney that complies with the Illinois Power of Attorney Act.
About the Author:
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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