HB541 Alabama 2014 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2014

Title

Credit report security freeze, applies to minors and incapacitated, Secs. 8-35-1, 8-35-2 am'd.

Summary

The bill would let a guardian or other authorized representative place and manage a security freeze on a minor’s or incapacitated person’s credit report, restricting how the report can be disclosed by credit agencies.

What This Bill Does

It authorizes a representative to freeze the credit information of a protected consumer (a minor under 17 or someone who is incapacitated or has a court-appointed guardian). Credit reporting agencies must place the freeze within 3 business days after receiving the proper written request and proof, and they must send a confirmation and a PIN/password. The bill allows temporary lifting of the freeze for a set period and includes removal procedures, as well as the creation of a protective record if no credit report exists. It also outlines who is exempt from the rules, and sets fees, penalties, and an effective date.

Who It Affects

• Protected consumers (minors under 17 or incapacitated individuals, or those with a guardian/conservator) whose credit information can be frozen by a representative.
• Representatives (guardians or other authorized individuals) who must provide proof of authority to act on behalf of the protected consumer and follow procedures to place, lift, or remove freezes.
• Consumer credit reporting agencies, which must implement the process, issue confirmations and PINs, manage protective records, and handle removals and temporary lifts.

Key Provisions

• Amends 8-35-1 and 8-35-2 to create and define 'protected consumer' and 'representative' and to authorize a representative to place a security freeze on the protected consumer's credit report.
• Defines terms such as protected consumer, representative, protective record, and security freeze, and lists exemptions from the section.
• Requires agencies to place a security freeze within three business days of receiving a written request with proper identification and proof of authority, and to issue written confirmation with a PIN/password.
• Allows temporary lifting of a security freeze for a specified period through approved processes, and sets removal timelines (three business days for standard removals; up to 30 business days for protective records).
• Implements fees: up to $10 per freeze placement, removal, or temporary lift; no fee for individuals 65+, and no fee for identity theft victims with police reports; replacement PINs cost up to $5.
• Establishes penalties for violations (fines up to $100 per consumer) and sets the act's effective date (first day of the third month after passage).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Credit Reports