BISMARCK - Attorney General Wayne Stenehjem and a lobbyist for the state AARP said they'll be working this week to defend an important consumer protection bill from assault by credit reporting agencies.
The legislation is House Bill 1417. It would allow North Dakotans to put a freeze on their credit files as a prevention against identity theft or after they have already been victimized, to prevent further damage. The freeze would mean no one could open new charges or make loans until the account is unfrozen by the consumer.
"It sailed through the House," Stenehjem said, passing 92-0 on Feb. 7 and carries an emergency clause so that it would take effect almost immediately if it passes the Senate by at least a two-thirds margin.
Details of bill
Under the bill, consumers would be able to contact the major credit reporting agencies and put a freeze on their credit, and the agencies would have to effect the freeze within three days. If the person has already been the victim of identity theft, the agency would have to enact the freeze within 24 hours.
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The cost of requesting the freeze would be $5. The consumer could contact the credit reporting agencies by phone, e-mail, fax or letter.
The consumer would be able to order a temporary lift of the freeze for legitimate purposes such as taking out a new loan.
Agencies: Change billStenehjem and Linda Wurtz of the North Dakota AARP said the credit reporting agencies, through the Consumer Data Industry Association, wants the bill to be amended to make the freeze fee $10 and to require the consumer to request the freeze in writing, preferably by certified mail.
"That's a nonstarter for us," Stenehjem said.
The industry's claim that malicious ex-spouses or others could enact bogus freezes to victimize or harass someone is not realistic, he said.
"Give me an example where that's happened," Stenehjem said.
He said the industry also wants to raise the fee for freezing credit from the $5 in the bill to $10.
Wurtz said it's worse - the industry wants a $10 fee from the consumer to place the freeze, $10 to lift the freeze, and $10 to re-enact the freeze.
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It's important for credit freezes to be easy and inexpensive for consumers, Stenehjem and Wurtz said.
"I think the result of those (industry-backed) amendments would put it totally out of reach of most people," Wurtz said.
In other statesShe said security freeze bills have passed in 26 states and the District of Columbia. Many have exactly the same provisions for timelines and low fees that are in the North Dakota bill.
"North Dakotans deserve the same protections" as people in those states, she said.
Some states require all freezes to be enacted in 24 hours and for temporary lifts to be in effect within 15 minutes. That proves the industry is capable of meeting such deadlines, she said.
Comment from the industry was not immediately available for this story. Current North Dakota secretary of state's records of registered lobbyists do not list the Consumer Data Industry Association as having someone registered here.
Cole works for Forum Communications Co., which owns the Herald.
