InfoBytes Blog
Filter
Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
California governor signs amendments requiring the furnishing of customer account information associated with certain crime reports
On September 6, the governor of California signed amendments to the California Right to Financial Privacy Act to provide various state and local agencies—including the police, sheriff’s department, or district attorney in the state—the authorization to request information from financial institutions in certain circumstances associated with crime reports involving the alleged fraudulent use of drafts, checks, access cards, or other orders. Specifically, AB 3229 states that banks, credit unions, and savings associations must furnish a statement with the requested customer account information for a period of 30 days prior, and up to 30 days following, the date of the alleged illegal act’s occurrence. AB 3229 further states that financial institutions will be required to furnish account information—subject to the outlined procedures—to a DOJ special agent upon request.
Washington governor enacts amendment relating to security freeze fees
On March 13, the Washington governor signed Senate Bill 6018, which amends sections of the state’s Fair Credit Reporting Act addressing the removal of security freezes. Among other things, the amended act prohibits credit reporting agencies (CRAs) from charging a fee for placing, temporarily lifting, or removing a security freeze, or when assigning consumers unique personal identification numbers. Additionally, the offices of cybersecurity and privacy and data protection and the Attorney General’s office are instructed to work with stakeholders to evaluate the amendment’s impact on consumers and CRAs. A findings report must be submitted by December 1, 2020, and include data breach trends and recommendations by federal and state agencies. The amendment takes effect June 7.
Nebraska, South Dakota enact legislation relating to security breaches and credit freezes
On March 1, the governor of South Dakota signed House Bill 1078 to revise certain provisions addressing the removal of credit security freezes. The amended act states that a security freeze will remain in place until a consumer requests the removal from the consumer reporting agency. The consumer reporting agency is then required to remove the freeze within three business days. Separately, on February 27, the governor signed House Bill 1127 (HB 1127) to revise certain provisions concerning fees charged for security freezes. Among other things, HB 1127 prohibits consumer reporting agencies from charging a fee for placing or removing a security freeze, and stipulates that a consumer reporting agency may advise a third party that a consumer’s credit report has been frozen.
On February 28, the governor of Nebraska approved Legislative Bill 757 strengthening certain provisions of the state’s Credit Report Protection Act and the Financial Data Protection and Consumer Notification of Data Security Breach Act of 2006. Among other things, the amendments state that (i) any individual or commercial entity in the state that possesses computerized data containing personal information of Nebraska residents must maintain reasonable security and disposal procedures and practices; (ii) nonaffiliated third-parties with access to personal information must also maintain reasonable security and disposal procedures; and (iii) consumer reporting agencies must provide services free-of-charge for the placement or removal of a credit security freeze. The legislation also outlines additional violations under which the Nebraska Attorney General can enforce protection of consumer privacy in the event of a data breach.