(a) A consumer mayplace a security freeze on the consumer's credit report by making a request toa consumer reporting agency in accordance with this subsection. A securityfreeze shall prohibit, subject to exceptions in subsection (l) of this section,the consumer reporting agency from releasing the consumer's credit report orany information from it without the express authorization of the consumer. Whena security freeze is in place, a consumer reporting agency may not release theconsumer's credit report or information to a third party without prior expressauthorization from the consumer. This subsection does not prevent a consumerreporting agency from advising a third party that a security freeze is ineffect with respect to the consumer's credit report, provided that the consumerreporting agency does not state or otherwise imply to the third party that theconsumer's security freeze reflects a negative credit score, history, report,or rating. A consumer reporting agency shall place a security freeze on aconsumer's credit report if the consumer requests a security freeze by any ofthe following methods:
(1) First‑classmail.
(2) Telephone call.
(3) Secure Web site orsecure electronic mail connection.
(a1) A nationwide consumerreporting agency, as defined in section 603(p) [15 U.S.C. § 1681a(p)] of thefederal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq., that receives arequest from a consumer residing in this State to place a security freeze onthe consumer's file, shall provide a notice communicating to the consumer thatthe freeze is only placed with the consumer reporting agency to which theconsumer directed the request. The notice shall provide to the consumer the Website, postal address, and telephone number of the other nationwide consumerreporting agencies and of the North Carolina Attorney General's Office andshall inform the consumer that he or she may use this information to contactother nationwide consumer reporting agencies to make security freeze requestsand obtain information on combating identity theft. No part of the notice tothe consumer shall be used to make a solicitation for other goods and services.
(b) A consumerreporting agency shall place a security freeze on a consumer's credit report nolater than three business days after receiving a written request from theconsumer by mail. A consumer reporting agency that receives such a requestelectronically or by telephone shall comply with the request within 24 hours ofreceiving the request.
(c) The consumerreporting agency shall send a written confirmation of the security freeze tothe consumer within three business days of placing the freeze and at the sametime shall provide the consumer with a unique personal identification number orpassword, other than the consumer's social security number, to be used by theconsumer when providing authorization for the release of the consumer's creditreport for a specific period of time, or to a specific party, or forpermanently lifting the freeze.
(d) If the consumerwishes to allow the consumer's credit report to be accessed for a specificperiod of time or by a specific party while a freeze is in place, the consumershall contact the consumer reporting agency by mail, phone, or electronically,request that the freeze be lifted or lifted with respect to a specific party,and provide all of the following:
(1) Properidentification.
(2) The unique personalidentification number or password provided by the consumer reporting agencypursuant to subsection (c) of this section.
(3) The properinformation regarding the third party who is authorized to receive the consumercredit report or the time period for which the report shall be available tousers of the credit report.
(e) Repealed by SessionLaws 2009‑355, s. 1, effective October 1, 2009.
(f) A consumerreporting agency that receives a request by mail from a consumer to lift afreeze on a credit report pursuant to subsection (d) of this section shallcomply with the request no later than three business days after receiving therequest. A consumer reporting agency that receives such a requestelectronically or by telephone shall comply with the request within 15 minutesof receiving the request.
(g) A consumerreporting agency shall remove, temporarily lift, or lift with respect to aspecific third party a freeze placed on a consumer's credit report only in thefollowing cases:
(1) Upon the consumer'srequest, pursuant to subsections (d) or (j) of this section.
(2) If the consumer'scredit report was frozen due to a material misrepresentation of fact by theconsumer. If a consumer reporting agency intends to remove a freeze upon aconsumer's credit report pursuant to this subdivision, the consumer reportingagency shall notify the consumer in writing prior to removing the freeze on theconsumer's credit report.
(g1) A consumer reportingagency need not meet the time requirements provided in this section, only forsuch time as the occurrences prevent compliance, if any of the followingoccurrences apply:
(1) The consumer failsto meet the requirements of subsection (d) or (j) of this section.
(2) The consumerreporting agency's ability to remove, place, temporarily lift, or lift withrespect to a specific party the security freeze is prevented by any of the following:
a. An act of God,including fire, earthquakes, hurricanes, storms, or similar natural disaster orphenomena.
b. Unauthorized orillegal acts by a third party, including terrorism, sabotage, riot, vandalism,labor strikes or disputes disrupting operations, or similar occurrences.
c. Operationalinterruption, including electrical failure, unanticipated delay in equipment orreplacement part delivery, computer hardware or software failures inhibitingresponse time, or similar disruption.
d. Governmental action,including emergency orders or regulations, judicial or law enforcement action,or similar directives.
e. Regularly scheduledmaintenance, during other than normal business hours, of, or updates to, theconsumer reporting agency's systems.
f. Commerciallyreasonable maintenance of, or repair to, the consumer reporting agency'ssystems that is unexpected or unscheduled.
g. Receipt of a requestoutside of normal business hours.
(h) If a third partyrequests access to a consumer credit report on which a security freeze is ineffect and this request is in connection with an application for credit or anyother use and the consumer does not allow the consumer's credit report to beaccessed for that specific period of time, the third party may treat the applicationas incomplete.
(i) If a consumerrequests a security freeze pursuant to this section, the consumer reportingagency shall disclose to the consumer the process of placing and temporarilylifting a security freeze and the process for allowing access to informationfrom the consumer's credit report for a specific period of time or to aspecific third party while the security freeze is in place.
(j) A security freezeshall remain in place until the consumer requests that the security freeze betemporarily lifted for a specific period of time or to a specific third partyor removed. A consumer reporting agency shall remove a security freeze within15 minutes of receiving an electronic request for removal from the consumer orwithin three business days of receiving a written or telephonic request forremoval from the consumer, who provides all of the following:
(1) Properidentification.
(2) The unique personalidentification number or password provided by the consumer reporting agencypursuant to subsection (c) of this section.
(k) A consumerreporting agency shall require proper identification of the person making arequest to place or remove a security freeze.
(l) The provisions ofthis section do not apply to the use of a consumer credit report by any of thefollowing:
(1) A person, or theperson's subsidiary, affiliate, agent, subcontractor, or assignee with whom theconsumer has, or prior to assignment had, an account, contract, or debtor‑creditorrelationship for the purposes of reviewing the active account or collecting thefinancial obligation owing for the account, contract, or debt.
(2) A subsidiary,affiliate, agent, assignee, or prospective assignee of a person to whom accesshas been granted under subsection (d) of this section for purposes of facilitatingthe extension of credit or other permissible use.
(3) Any person actingpursuant to a court order, warrant, or subpoena.
(4) A state or localagency, or its agents or assigns, which administers a program for establishingand enforcing child support obligations.
(5) A state or localagency, or its agents or assigns, acting to investigate fraud, includingMedicaid fraud, or acting to investigate or collect delinquent taxes orassessments, including interest and penalties, unpaid court orders, or tofulfill any of its other statutory responsibilities.
(6) A federal, state, orlocal governmental entity, including law enforcement agency, court, or theiragent or assigns.
(7) A person for thepurposes of prescreening as defined by the Fair Credit Reporting Act, 15 U.S.C.§ 1681, et seq.
(8) Any person for thesole purpose of providing for a credit file monitoring subscription service towhich the consumer has subscribed.
(9) A consumer reportingagency for the purpose of providing a consumer with a copy of the consumer'scredit report upon the consumer's request.
(10) Any depositoryfinancial institution for checking, savings, and investment accounts.
(11) Any property andcasualty insurance company for use in setting or adjusting a rate, adjusting aclaim, or underwriting for property and casualty insurance purposes.
(12) A person for thepurpose of furnishing or using credit reports for employment purposes pursuantto 15 U.S.C. § 1681b(b) or tenant screening pursuant to 15 U.S.C. §1681b(a)(3)(F).
(13) A person for thepurpose of criminal background record information.
(m) If a security freezeis in place, a consumer reporting agency shall not change any of the followingofficial information in a credit report without sending a written confirmationof the change to the consumer within 30 days of the change being posted to theconsumer's file: name, date of birth, social security number, and address.Written confirmation is not required for technical modifications of aconsumer's official information, including name and street abbreviations,complete spellings, or transposition of numbers or letters. In the case of anaddress change, the written confirmation shall be sent to both the new addressand the former address.
(n) The followingpersons are not required to place in a credit report a security freeze pursuantto this section provided, however, that any person that is not required toplace a security freeze on a credit report under the provisions of subdivision(3) of this subsection shall be subject to any security freeze placed on acredit report by another consumer reporting agency from which it obtainsinformation:
(1) A check services orfraud prevention services company, which reports on incidents of fraud orissues authorizations for the purpose of approving or processing negotiableinstruments, electronic fund transfers, or similar methods of payment.
(2) A deposit accountinformation service company, which issues reports regarding account closuresdue to fraud, substantial overdrafts, ATM abuse, or other similar negativeinformation regarding a consumer to inquiring banks or other financialinstitutions for use only in reviewing a consumer request for a deposit accountat the inquiring bank or financial institution.
(3) A consumer reportingagency that does all of the following:
a. Acts only to resellcredit information by assembling and merging information contained in adatabase of one or more credit reporting agencies.
b. Does not maintain apermanent database of credit information from which new credit reports areproduced.
(o) A consumerreporting agency shall not charge a fee to put a security freeze in place,remove a freeze, or lift a freeze pursuant to subsection (d) or (j) of thissection, provided that any such request is made electronically. If a request toput a security freeze in place is made by telephone or by mail, a consumerreporting agency may charge a fee to a consumer not to exceed three dollars($3.00), except that a consumer reporting agency may not charge any fee to aconsumer over the age of 62, to a victim of identity theft who has submitted acopy of a valid investigative or incident report or complaint with a lawenforcement agency about the unlawful use of the victim's identifyinginformation by another person, or to the victim's spouse. A consumer reportingagency shall not charge an additional fee to a consumer who requests totemporarily lift for a specific period of time or to a specific third party,reinstate, or remove a security freeze. A consumer reporting agency shall notcharge a consumer for a onetime reissue of a replacement personalidentification number. A consumer reporting agency may charge a fee not toexceed three dollars ($3.00) to provide any subsequent replacement personalidentification number.
(o1) A parent or guardianof a minor residing in this State may, upon appropriate proof of identity andproof of their relationship to the minor, inquire of a nationwide consumerreporting agency, as defined in section 603(p) [15 U.S.C. § 1681a(p)] of thefederal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq., as to theexistence of a credit report for the minor of the parent or guardian. If acredit report for the minor exists, the nationwide consumer reporting agencyshall make reasonable efforts to prevent providing a credit report on the minoruntil the minor reaches the age of majority. If a credit report for the minordoes not exist, the nationwide consumer reporting agency has no obligation tocreate one.
(p) At any time that aconsumer is required to receive a summary of rights required under section 609of the federal Fair Credit Reporting Act, the following notice shall beincluded:
"North Carolina Consumers Have the Right toObtain a Security Freeze.
You have a right to place a"security freeze" on your credit report pursuant to North Carolinalaw. The security freeze will prohibit a consumer reporting agency fromreleasing any information in your credit report without your expressauthorization. A security freeze can be requested in writing by first‑classmail, by telephone, or electronically. You also may request a freeze byvisiting the following Web site: [URL] or calling the following telephonenumber: [NUMBER].
The security freeze isdesigned to prevent credit, loans, and services from being approved in yourname without your consent. However, you should be aware that using a securityfreeze to take control over who gains access to the personal and financialinformation in your credit report may delay, interfere with, or prohibit thetimely approval of any subsequent request or application you make regarding newloans, credit, mortgage, insurance, rental housing, employment, investment,license, cellular phone, utilities, digital signature, Internet credit cardtransactions, or other services, including an extension of credit at point ofsale.
The freeze will be placedwithin three business days if you request it by mail, or within 24 hours if yourequest it by telephone or electronically. When you place a security freeze onyour credit report, within three business days, you will be sent a personalidentification number or a password to use when you want to remove the securityfreeze, temporarily lift it, or lift it with respect to a particular thirdparty.
A freeze does not apply whenyou have an existing account relationship and a copy of your report isrequested by your existing creditor or its agents or affiliates for certaintypes of account review, collection, fraud control, or similar activities.
You should plan ahead and lifta freeze if you are actively seeking credit or services as a security freezemay slow your applications, as mentioned above.
You can remove a freeze,temporarily lift a freeze, or lift a freeze with respect to a particular thirdparty by contacting the consumer reporting agency and providing all of thefollowing:
(1) Your personalidentification number or password,
(2) Properidentification to verify your identity, and
(3) Proper informationregarding the period of time you want your report available to users of thecredit report, or the third party with respect to which you want to lift thefreeze.
A consumer reporting agencythat receives a request from you to temporarily lift a freeze or to lift afreeze with respect to a particular third party on a credit report shall complywith the request no later than three business days after receiving the requestby mail and no later than 15 minutes after receiving a request by telephone orelectronically. A consumer reporting agency may charge you up to three dollars($3.00) to institute a freeze if your request is made by telephone or by mail.A consumer reporting agency may not charge you any amount to freeze, remove afreeze, temporarily lift a freeze, or lift a freeze with respect to aparticular third party, if any of the following are true:
(1) Your request is madeelectronically.
(2) You are over the ageof 62.
(3) You are the victimof identity theft and have submitted a copy of a valid investigative orincident report or complaint with a law enforcement agency about the unlawfuluse of your identifying information by another person, or you are the spouse ofsuch a person.
You have a right to bring acivil action against someone who violates your rights under the creditreporting laws. The action can be brought against a consumer reporting agencyor a user of your credit report."
(q) A violation of thissection is a violation of G.S. 75‑1.1. (2005‑414, s. 1; 2006‑158, s. 1; 2009‑355,s. 1; 2009‑550, s. 5.)
(a) A consumer mayplace a security freeze on the consumer's credit report by making a request toa consumer reporting agency in accordance with this subsection. A securityfreeze shall prohibit, subject to exceptions in subsection (l) of this section,the consumer reporting agency from releasing the consumer's credit report orany information from it without the express authorization of the consumer. Whena security freeze is in place, a consumer reporting agency may not release theconsumer's credit report or information to a third party without prior expressauthorization from the consumer. This subsection does not prevent a consumerreporting agency from advising a third party that a security freeze is ineffect with respect to the consumer's credit report, provided that the consumerreporting agency does not state or otherwise imply to the third party that theconsumer's security freeze reflects a negative credit score, history, report,or rating. A consumer reporting agency shall place a security freeze on aconsumer's credit report if the consumer requests a security freeze by any ofthe following methods:
(1) First‑classmail.
(2) Telephone call.
(3) Secure Web site orsecure electronic mail connection.
(a1) A nationwide consumerreporting agency, as defined in section 603(p) [15 U.S.C. § 1681a(p)] of thefederal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq., that receives arequest from a consumer residing in this State to place a security freeze onthe consumer's file, shall provide a notice communicating to the consumer thatthe freeze is only placed with the consumer reporting agency to which theconsumer directed the request. The notice shall provide to the consumer the Website, postal address, and telephone number of the other nationwide consumerreporting agencies and of the North Carolina Attorney General's Office andshall inform the consumer that he or she may use this information to contactother nationwide consumer reporting agencies to make security freeze requestsand obtain information on combating identity theft. No part of the notice tothe consumer shall be used to make a solicitation for other goods and services.
(b) A consumerreporting agency shall place a security freeze on a consumer's credit report nolater than three business days after receiving a written request from theconsumer by mail. A consumer reporting agency that receives such a requestelectronically or by telephone shall comply with the request within 24 hours ofreceiving the request.
(c) The consumerreporting agency shall send a written confirmation of the security freeze tothe consumer within three business days of placing the freeze and at the sametime shall provide the consumer with a unique personal identification number orpassword, other than the consumer's social security number, to be used by theconsumer when providing authorization for the release of the consumer's creditreport for a specific period of time, or to a specific party, or forpermanently lifting the freeze.
(d) If the consumerwishes to allow the consumer's credit report to be accessed for a specificperiod of time or by a specific party while a freeze is in place, the consumershall contact the consumer reporting agency by mail, phone, or electronically,request that the freeze be lifted or lifted with respect to a specific party,and provide all of the following:
(1) Properidentification.
(2) The unique personalidentification number or password provided by the consumer reporting agencypursuant to subsection (c) of this section.
(3) The properinformation regarding the third party who is authorized to receive the consumercredit report or the time period for which the report shall be available tousers of the credit report.
(e) Repealed by SessionLaws 2009‑355, s. 1, effective October 1, 2009.
(f) A consumerreporting agency that receives a request by mail from a consumer to lift afreeze on a credit report pursuant to subsection (d) of this section shallcomply with the request no later than three business days after receiving therequest. A consumer reporting agency that receives such a requestelectronically or by telephone shall comply with the request within 15 minutesof receiving the request.
(g) A consumerreporting agency shall remove, temporarily lift, or lift with respect to aspecific third party a freeze placed on a consumer's credit report only in thefollowing cases:
(1) Upon the consumer'srequest, pursuant to subsections (d) or (j) of this section.
(2) If the consumer'scredit report was frozen due to a material misrepresentation of fact by theconsumer. If a consumer reporting agency intends to remove a freeze upon aconsumer's credit report pursuant to this subdivision, the consumer reportingagency shall notify the consumer in writing prior to removing the freeze on theconsumer's credit report.
(g1) A consumer reportingagency need not meet the time requirements provided in this section, only forsuch time as the occurrences prevent compliance, if any of the followingoccurrences apply:
(1) The consumer failsto meet the requirements of subsection (d) or (j) of this section.
(2) The consumerreporting agency's ability to remove, place, temporarily lift, or lift withrespect to a specific party the security freeze is prevented by any of the following:
a. An act of God,including fire, earthquakes, hurricanes, storms, or similar natural disaster orphenomena.
b. Unauthorized orillegal acts by a third party, including terrorism, sabotage, riot, vandalism,labor strikes or disputes disrupting operations, or similar occurrences.
c. Operationalinterruption, including electrical failure, unanticipated delay in equipment orreplacement part delivery, computer hardware or software failures inhibitingresponse time, or similar disruption.
d. Governmental action,including emergency orders or regulations, judicial or law enforcement action,or similar directives.
e. Regularly scheduledmaintenance, during other than normal business hours, of, or updates to, theconsumer reporting agency's systems.
f. Commerciallyreasonable maintenance of, or repair to, the consumer reporting agency'ssystems that is unexpected or unscheduled.
g. Receipt of a requestoutside of normal business hours.
(h) If a third partyrequests access to a consumer credit report on which a security freeze is ineffect and this request is in connection with an application for credit or anyother use and the consumer does not allow the consumer's credit report to beaccessed for that specific period of time, the third party may treat the applicationas incomplete.
(i) If a consumerrequests a security freeze pursuant to this section, the consumer reportingagency shall disclose to the consumer the process of placing and temporarilylifting a security freeze and the process for allowing access to informationfrom the consumer's credit report for a specific period of time or to aspecific third party while the security freeze is in place.
(j) A security freezeshall remain in place until the consumer requests that the security freeze betemporarily lifted for a specific period of time or to a specific third partyor removed. A consumer reporting agency shall remove a security freeze within15 minutes of receiving an electronic request for removal from the consumer orwithin three business days of receiving a written or telephonic request forremoval from the consumer, who provides all of the following:
(1) Properidentification.
(2) The unique personalidentification number or password provided by the consumer reporting agencypursuant to subsection (c) of this section.
(k) A consumerreporting agency shall require proper identification of the person making arequest to place or remove a security freeze.
(l) The provisions ofthis section do not apply to the use of a consumer credit report by any of thefollowing:
(1) A person, or theperson's subsidiary, affiliate, agent, subcontractor, or assignee with whom theconsumer has, or prior to assignment had, an account, contract, or debtor‑creditorrelationship for the purposes of reviewing the active account or collecting thefinancial obligation owing for the account, contract, or debt.
(2) A subsidiary,affiliate, agent, assignee, or prospective assignee of a person to whom accesshas been granted under subsection (d) of this section for purposes of facilitatingthe extension of credit or other permissible use.
(3) Any person actingpursuant to a court order, warrant, or subpoena.
(4) A state or localagency, or its agents or assigns, which administers a program for establishingand enforcing child support obligations.
(5) A state or localagency, or its agents or assigns, acting to investigate fraud, includingMedicaid fraud, or acting to investigate or collect delinquent taxes orassessments, including interest and penalties, unpaid court orders, or tofulfill any of its other statutory responsibilities.
(6) A federal, state, orlocal governmental entity, including law enforcement agency, court, or theiragent or assigns.
(7) A person for thepurposes of prescreening as defined by the Fair Credit Reporting Act, 15 U.S.C.§ 1681, et seq.
(8) Any person for thesole purpose of providing for a credit file monitoring subscription service towhich the consumer has subscribed.
(9) A consumer reportingagency for the purpose of providing a consumer with a copy of the consumer'scredit report upon the consumer's request.
(10) Any depositoryfinancial institution for checking, savings, and investment accounts.
(11) Any property andcasualty insurance company for use in setting or adjusting a rate, adjusting aclaim, or underwriting for property and casualty insurance purposes.
(12) A person for thepurpose of furnishing or using credit reports for employment purposes pursuantto 15 U.S.C. § 1681b(b) or tenant screening pursuant to 15 U.S.C. §1681b(a)(3)(F).
(13) A person for thepurpose of criminal background record information.
(m) If a security freezeis in place, a consumer reporting agency shall not change any of the followingofficial information in a credit report without sending a written confirmationof the change to the consumer within 30 days of the change being posted to theconsumer's file: name, date of birth, social security number, and address.Written confirmation is not required for technical modifications of aconsumer's official information, including name and street abbreviations,complete spellings, or transposition of numbers or letters. In the case of anaddress change, the written confirmation shall be sent to both the new addressand the former address.
(n) The followingpersons are not required to place in a credit report a security freeze pursuantto this section provided, however, that any person that is not required toplace a security freeze on a credit report under the provisions of subdivision(3) of this subsection shall be subject to any security freeze placed on acredit report by another consumer reporting agency from which it obtainsinformation:
(1) A check services orfraud prevention services company, which reports on incidents of fraud orissues authorizations for the purpose of approving or processing negotiableinstruments, electronic fund transfers, or similar methods of payment.
(2) A deposit accountinformation service company, which issues reports regarding account closuresdue to fraud, substantial overdrafts, ATM abuse, or other similar negativeinformation regarding a consumer to inquiring banks or other financialinstitutions for use only in reviewing a consumer request for a deposit accountat the inquiring bank or financial institution.
(3) A consumer reportingagency that does all of the following:
a. Acts only to resellcredit information by assembling and merging information contained in adatabase of one or more credit reporting agencies.
b. Does not maintain apermanent database of credit information from which new credit reports areproduced.
(o) A consumerreporting agency shall not charge a fee to put a security freeze in place,remove a freeze, or lift a freeze pursuant to subsection (d) or (j) of thissection, provided that any such request is made electronically. If a request toput a security freeze in place is made by telephone or by mail, a consumerreporting agency may charge a fee to a consumer not to exceed three dollars($3.00), except that a consumer reporting agency may not charge any fee to aconsumer over the age of 62, to a victim of identity theft who has submitted acopy of a valid investigative or incident report or complaint with a lawenforcement agency about the unlawful use of the victim's identifyinginformation by another person, or to the victim's spouse. A consumer reportingagency shall not charge an additional fee to a consumer who requests totemporarily lift for a specific period of time or to a specific third party,reinstate, or remove a security freeze. A consumer reporting agency shall notcharge a consumer for a onetime reissue of a replacement personalidentification number. A consumer reporting agency may charge a fee not toexceed three dollars ($3.00) to provide any subsequent replacement personalidentification number.
(o1) A parent or guardianof a minor residing in this State may, upon appropriate proof of identity andproof of their relationship to the minor, inquire of a nationwide consumerreporting agency, as defined in section 603(p) [15 U.S.C. § 1681a(p)] of thefederal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq., as to theexistence of a credit report for the minor of the parent or guardian. If acredit report for the minor exists, the nationwide consumer reporting agencyshall make reasonable efforts to prevent providing a credit report on the minoruntil the minor reaches the age of majority. If a credit report for the minordoes not exist, the nationwide consumer reporting agency has no obligation tocreate one.
(p) At any time that aconsumer is required to receive a summary of rights required under section 609of the federal Fair Credit Reporting Act, the following notice shall beincluded:
"North Carolina Consumers Have the Right toObtain a Security Freeze.
You have a right to place a"security freeze" on your credit report pursuant to North Carolinalaw. The security freeze will prohibit a consumer reporting agency fromreleasing any information in your credit report without your expressauthorization. A security freeze can be requested in writing by first‑classmail, by telephone, or electronically. You also may request a freeze byvisiting the following Web site: [URL] or calling the following telephonenumber: [NUMBER].
The security freeze isdesigned to prevent credit, loans, and services from being approved in yourname without your consent. However, you should be aware that using a securityfreeze to take control over who gains access to the personal and financialinformation in your credit report may delay, interfere with, or prohibit thetimely approval of any subsequent request or application you make regarding newloans, credit, mortgage, insurance, rental housing, employment, investment,license, cellular phone, utilities, digital signature, Internet credit cardtransactions, or other services, including an extension of credit at point ofsale.
The freeze will be placedwithin three business days if you request it by mail, or within 24 hours if yourequest it by telephone or electronically. When you place a security freeze onyour credit report, within three business days, you will be sent a personalidentification number or a password to use when you want to remove the securityfreeze, temporarily lift it, or lift it with respect to a particular thirdparty.
A freeze does not apply whenyou have an existing account relationship and a copy of your report isrequested by your existing creditor or its agents or affiliates for certaintypes of account review, collection, fraud control, or similar activities.
You should plan ahead and lifta freeze if you are actively seeking credit or services as a security freezemay slow your applications, as mentioned above.
You can remove a freeze,temporarily lift a freeze, or lift a freeze with respect to a particular thirdparty by contacting the consumer reporting agency and providing all of thefollowing:
(1) Your personalidentification number or password,
(2) Properidentification to verify your identity, and
(3) Proper informationregarding the period of time you want your report available to users of thecredit report, or the third party with respect to which you want to lift thefreeze.
A consumer reporting agencythat receives a request from you to temporarily lift a freeze or to lift afreeze with respect to a particular third party on a credit report shall complywith the request no later than three business days after receiving the requestby mail and no later than 15 minutes after receiving a request by telephone orelectronically. A consumer reporting agency may charge you up to three dollars($3.00) to institute a freeze if your request is made by telephone or by mail.A consumer reporting agency may not charge you any amount to freeze, remove afreeze, temporarily lift a freeze, or lift a freeze with respect to aparticular third party, if any of the following are true:
(1) Your request is madeelectronically.
(2) You are over the ageof 62.
(3) You are the victimof identity theft and have submitted a copy of a valid investigative orincident report or complaint with a law enforcement agency about the unlawfuluse of your identifying information by another person, or you are the spouse ofsuch a person.
You have a right to bring acivil action against someone who violates your rights under the creditreporting laws. The action can be brought against a consumer reporting agencyor a user of your credit report."
(q) A violation of thissection is a violation of G.S. 75‑1.1. (2005‑414, s. 1; 2006‑158, s. 1; 2009‑355,s. 1; 2009‑550, s. 5.)
(a) A consumer mayplace a security freeze on the consumer's credit report by making a request toa consumer reporting agency in accordance with this subsection. A securityfreeze shall prohibit, subject to exceptions in subsection (l) of this section,the consumer reporting agency from releasing the consumer's credit report orany information from it without the express authorization of the consumer. Whena security freeze is in place, a consumer reporting agency may not release theconsumer's credit report or information to a third party without prior expressauthorization from the consumer. This subsection does not prevent a consumerreporting agency from advising a third party that a security freeze is ineffect with respect to the consumer's credit report, provided that the consumerreporting agency does not state or otherwise imply to the third party that theconsumer's security freeze reflects a negative credit score, history, report,or rating. A consumer reporting agency shall place a security freeze on aconsumer's credit report if the consumer requests a security freeze by any ofthe following methods:
(1) First‑classmail.
(2) Telephone call.
(3) Secure Web site orsecure electronic mail connection.
(a1) A nationwide consumerreporting agency, as defined in section 603(p) [15 U.S.C. § 1681a(p)] of thefederal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq., that receives arequest from a consumer residing in this State to place a security freeze onthe consumer's file, shall provide a notice communicating to the consumer thatthe freeze is only placed with the consumer reporting agency to which theconsumer directed the request. The notice shall provide to the consumer the Website, postal address, and telephone number of the other nationwide consumerreporting agencies and of the North Carolina Attorney General's Office andshall inform the consumer that he or she may use this information to contactother nationwide consumer reporting agencies to make security freeze requestsand obtain information on combating identity theft. No part of the notice tothe consumer shall be used to make a solicitation for other goods and services.
(b) A consumerreporting agency shall place a security freeze on a consumer's credit report nolater than three business days after receiving a written request from theconsumer by mail. A consumer reporting agency that receives such a requestelectronically or by telephone shall comply with the request within 24 hours ofreceiving the request.
(c) The consumerreporting agency shall send a written confirmation of the security freeze tothe consumer within three business days of placing the freeze and at the sametime shall provide the consumer with a unique personal identification number orpassword, other than the consumer's social security number, to be used by theconsumer when providing authorization for the release of the consumer's creditreport for a specific period of time, or to a specific party, or forpermanently lifting the freeze.
(d) If the consumerwishes to allow the consumer's credit report to be accessed for a specificperiod of time or by a specific party while a freeze is in place, the consumershall contact the consumer reporting agency by mail, phone, or electronically,request that the freeze be lifted or lifted with respect to a specific party,and provide all of the following:
(1) Properidentification.
(2) The unique personalidentification number or password provided by the consumer reporting agencypursuant to subsection (c) of this section.
(3) The properinformation regarding the third party who is authorized to receive the consumercredit report or the time period for which the report shall be available tousers of the credit report.
(e) Repealed by SessionLaws 2009‑355, s. 1, effective October 1, 2009.
(f) A consumerreporting agency that receives a request by mail from a consumer to lift afreeze on a credit report pursuant to subsection (d) of this section shallcomply with the request no later than three business days after receiving therequest. A consumer reporting agency that receives such a requestelectronically or by telephone shall comply with the request within 15 minutesof receiving the request.
(g) A consumerreporting agency shall remove, temporarily lift, or lift with respect to aspecific third party a freeze placed on a consumer's credit report only in thefollowing cases:
(1) Upon the consumer'srequest, pursuant to subsections (d) or (j) of this section.
(2) If the consumer'scredit report was frozen due to a material misrepresentation of fact by theconsumer. If a consumer reporting agency intends to remove a freeze upon aconsumer's credit report pursuant to this subdivision, the consumer reportingagency shall notify the consumer in writing prior to removing the freeze on theconsumer's credit report.
(g1) A consumer reportingagency need not meet the time requirements provided in this section, only forsuch time as the occurrences prevent compliance, if any of the followingoccurrences apply:
(1) The consumer failsto meet the requirements of subsection (d) or (j) of this section.
(2) The consumerreporting agency's ability to remove, place, temporarily lift, or lift withrespect to a specific party the security freeze is prevented by any of the following:
a. An act of God,including fire, earthquakes, hurricanes, storms, or similar natural disaster orphenomena.
b. Unauthorized orillegal acts by a third party, including terrorism, sabotage, riot, vandalism,labor strikes or disputes disrupting operations, or similar occurrences.
c. Operationalinterruption, including electrical failure, unanticipated delay in equipment orreplacement part delivery, computer hardware or software failures inhibitingresponse time, or similar disruption.
d. Governmental action,including emergency orders or regulations, judicial or law enforcement action,or similar directives.
e. Regularly scheduledmaintenance, during other than normal business hours, of, or updates to, theconsumer reporting agency's systems.
f. Commerciallyreasonable maintenance of, or repair to, the consumer reporting agency'ssystems that is unexpected or unscheduled.
g. Receipt of a requestoutside of normal business hours.
(h) If a third partyrequests access to a consumer credit report on which a security freeze is ineffect and this request is in connection with an application for credit or anyother use and the consumer does not allow the consumer's credit report to beaccessed for that specific period of time, the third party may treat the applicationas incomplete.
(i) If a consumerrequests a security freeze pursuant to this section, the consumer reportingagency shall disclose to the consumer the process of placing and temporarilylifting a security freeze and the process for allowing access to informationfrom the consumer's credit report for a specific period of time or to aspecific third party while the security freeze is in place.
(j) A security freezeshall remain in place until the consumer requests that the security freeze betemporarily lifted for a specific period of time or to a specific third partyor removed. A consumer reporting agency shall remove a security freeze within15 minutes of receiving an electronic request for removal from the consumer orwithin three business days of receiving a written or telephonic request forremoval from the consumer, who provides all of the following:
(1) Properidentification.
(2) The unique personalidentification number or password provided by the consumer reporting agencypursuant to subsection (c) of this section.
(k) A consumerreporting agency shall require proper identification of the person making arequest to place or remove a security freeze.
(l) The provisions ofthis section do not apply to the use of a consumer credit report by any of thefollowing:
(1) A person, or theperson's subsidiary, affiliate, agent, subcontractor, or assignee with whom theconsumer has, or prior to assignment had, an account, contract, or debtor‑creditorrelationship for the purposes of reviewing the active account or collecting thefinancial obligation owing for the account, contract, or debt.
(2) A subsidiary,affiliate, agent, assignee, or prospective assignee of a person to whom accesshas been granted under subsection (d) of this section for purposes of facilitatingthe extension of credit or other permissible use.
(3) Any person actingpursuant to a court order, warrant, or subpoena.
(4) A state or localagency, or its agents or assigns, which administers a program for establishingand enforcing child support obligations.
(5) A state or localagency, or its agents or assigns, acting to investigate fraud, includingMedicaid fraud, or acting to investigate or collect delinquent taxes orassessments, including interest and penalties, unpaid court orders, or tofulfill any of its other statutory responsibilities.
(6) A federal, state, orlocal governmental entity, including law enforcement agency, court, or theiragent or assigns.
(7) A person for thepurposes of prescreening as defined by the Fair Credit Reporting Act, 15 U.S.C.§ 1681, et seq.
(8) Any person for thesole purpose of providing for a credit file monitoring subscription service towhich the consumer has subscribed.
(9) A consumer reportingagency for the purpose of providing a consumer with a copy of the consumer'scredit report upon the consumer's request.
(10) Any depositoryfinancial institution for checking, savings, and investment accounts.
(11) Any property andcasualty insurance company for use in setting or adjusting a rate, adjusting aclaim, or underwriting for property and casualty insurance purposes.
(12) A person for thepurpose of furnishing or using credit reports for employment purposes pursuantto 15 U.S.C. § 1681b(b) or tenant screening pursuant to 15 U.S.C. §1681b(a)(3)(F).
(13) A person for thepurpose of criminal background record information.
(m) If a security freezeis in place, a consumer reporting agency shall not change any of the followingofficial information in a credit report without sending a written confirmationof the change to the consumer within 30 days of the change being posted to theconsumer's file: name, date of birth, social security number, and address.Written confirmation is not required for technical modifications of aconsumer's official information, including name and street abbreviations,complete spellings, or transposition of numbers or letters. In the case of anaddress change, the written confirmation shall be sent to both the new addressand the former address.
(n) The followingpersons are not required to place in a credit report a security freeze pursuantto this section provided, however, that any person that is not required toplace a security freeze on a credit report under the provisions of subdivision(3) of this subsection shall be subject to any security freeze placed on acredit report by another consumer reporting agency from which it obtainsinformation:
(1) A check services orfraud prevention services company, which reports on incidents of fraud orissues authorizations for the purpose of approving or processing negotiableinstruments, electronic fund transfers, or similar methods of payment.
(2) A deposit accountinformation service company, which issues reports regarding account closuresdue to fraud, substantial overdrafts, ATM abuse, or other similar negativeinformation regarding a consumer to inquiring banks or other financialinstitutions for use only in reviewing a consumer request for a deposit accountat the inquiring bank or financial institution.
(3) A consumer reportingagency that does all of the following:
a. Acts only to resellcredit information by assembling and merging information contained in adatabase of one or more credit reporting agencies.
b. Does not maintain apermanent database of credit information from which new credit reports areproduced.
(o) A consumerreporting agency shall not charge a fee to put a security freeze in place,remove a freeze, or lift a freeze pursuant to subsection (d) or (j) of thissection, provided that any such request is made electronically. If a request toput a security freeze in place is made by telephone or by mail, a consumerreporting agency may charge a fee to a consumer not to exceed three dollars($3.00), except that a consumer reporting agency may not charge any fee to aconsumer over the age of 62, to a victim of identity theft who has submitted acopy of a valid investigative or incident report or complaint with a lawenforcement agency about the unlawful use of the victim's identifyinginformation by another person, or to the victim's spouse. A consumer reportingagency shall not charge an additional fee to a consumer who requests totemporarily lift for a specific period of time or to a specific third party,reinstate, or remove a security freeze. A consumer reporting agency shall notcharge a consumer for a onetime reissue of a replacement personalidentification number. A consumer reporting agency may charge a fee not toexceed three dollars ($3.00) to provide any subsequent replacement personalidentification number.
(o1) A parent or guardianof a minor residing in this State may, upon appropriate proof of identity andproof of their relationship to the minor, inquire of a nationwide consumerreporting agency, as defined in section 603(p) [15 U.S.C. § 1681a(p)] of thefederal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq., as to theexistence of a credit report for the minor of the parent or guardian. If acredit report for the minor exists, the nationwide consumer reporting agencyshall make reasonable efforts to prevent providing a credit report on the minoruntil the minor reaches the age of majority. If a credit report for the minordoes not exist, the nationwide consumer reporting agency has no obligation tocreate one.
(p) At any time that aconsumer is required to receive a summary of rights required under section 609of the federal Fair Credit Reporting Act, the following notice shall beincluded:
"North Carolina Consumers Have the Right toObtain a Security Freeze.
You have a right to place a"security freeze" on your credit report pursuant to North Carolinalaw. The security freeze will prohibit a consumer reporting agency fromreleasing any information in your credit report without your expressauthorization. A security freeze can be requested in writing by first‑classmail, by telephone, or electronically. You also may request a freeze byvisiting the following Web site: [URL] or calling the following telephonenumber: [NUMBER].
The security freeze isdesigned to prevent credit, loans, and services from being approved in yourname without your consent. However, you should be aware that using a securityfreeze to take control over who gains access to the personal and financialinformation in your credit report may delay, interfere with, or prohibit thetimely approval of any subsequent request or application you make regarding newloans, credit, mortgage, insurance, rental housing, employment, investment,license, cellular phone, utilities, digital signature, Internet credit cardtransactions, or other services, including an extension of credit at point ofsale.
The freeze will be placedwithin three business days if you request it by mail, or within 24 hours if yourequest it by telephone or electronically. When you place a security freeze onyour credit report, within three business days, you will be sent a personalidentification number or a password to use when you want to remove the securityfreeze, temporarily lift it, or lift it with respect to a particular thirdparty.
A freeze does not apply whenyou have an existing account relationship and a copy of your report isrequested by your existing creditor or its agents or affiliates for certaintypes of account review, collection, fraud control, or similar activities.
You should plan ahead and lifta freeze if you are actively seeking credit or services as a security freezemay slow your applications, as mentioned above.
You can remove a freeze,temporarily lift a freeze, or lift a freeze with respect to a particular thirdparty by contacting the consumer reporting agency and providing all of thefollowing:
(1) Your personalidentification number or password,
(2) Properidentification to verify your identity, and
(3) Proper informationregarding the period of time you want your report available to users of thecredit report, or the third party with respect to which you want to lift thefreeze.
A consumer reporting agencythat receives a request from you to temporarily lift a freeze or to lift afreeze with respect to a particular third party on a credit report shall complywith the request no later than three business days after receiving the requestby mail and no later than 15 minutes after receiving a request by telephone orelectronically. A consumer reporting agency may charge you up to three dollars($3.00) to institute a freeze if your request is made by telephone or by mail.A consumer reporting agency may not charge you any amount to freeze, remove afreeze, temporarily lift a freeze, or lift a freeze with respect to aparticular third party, if any of the following are true:
(1) Your request is madeelectronically.
(2) You are over the ageof 62.
(3) You are the victimof identity theft and have submitted a copy of a valid investigative orincident report or complaint with a law enforcement agency about the unlawfuluse of your identifying information by another person, or you are the spouse ofsuch a person.
You have a right to bring acivil action against someone who violates your rights under the creditreporting laws. The action can be brought against a consumer reporting agencyor a user of your credit report."
(q) A violation of thissection is a violation of G.S. 75‑1.1. (2005‑414, s. 1; 2006‑158, s. 1; 2009‑355,s. 1; 2009‑550, s. 5.)
