|State||2013 Statute Number||2013 Statute Language|
|Arizona||Ariz. Rev. Stat. § 41-1521.|
Consumer Fraud Definitions.
|In this article, unless the context otherwise requires:|
1. "Advertisement" includes the attempt by publication, dissemination, solicitation or circulation, oral or written, to induce directly or indirectly any person to enter into any obligation or acquire any title or interest in any merchandise.
2. "Attorney general" means the attorney general of Arizona or his authorized delegate.
3. "Authorized delegate" means any attorney, investigator or administrative personnel employed by the attorney general and so designated, and, when requested by the county attorney and authorized by the attorney general may include similar personnel employed by the several county attorneys of this state.
4. "Examine" means the inspection, study or copying of any account, book, document, merchandise, paper or record.
5. "Merchandise" means any objects, wares, goods, commodities, intangibles, real estate, or services.
6. "Person" means any natural person or his legal representative, partnership, domestic or foreign corporation, any company, trust, business entity, or association, any agent, employee, salesman, partner, officer, director, member, stockholder, associate, or trustee.
7. "Sale" means any sale, offer for sale, or attempt to sell any merchandise for any consideration, including sales, leases and rentals of any real estate subject to any form of deed restriction imposed as part of a previous sale.
|Ariz. Rev. Stat. § 44-1522. |
Unlawful practices; intended interpretation of provisions.
|A. The act, use or employment by any person of any deception, deceptive or unfair act or practice, fraud, false pretense, false promise, misrepresentation, or concealment, suppression or omission of any material fact with intent that others rely on such concealment, suppression or omission, in connection with the sale or advertisement of any merchandise whether or not any person has in fact been misled, deceived or damaged thereby, is declared to be an unlawful practice.|
B. The violation of chapter 9, article 16 or chapter 19, article 1 of this title is declared to be an unlawful practice and subject to enforcement under this article.
C. It is the intent of the legislature, in construing subsection A, that the courts may use as a guide interpretations given by the federal trade commission and the federal courts to 15 United States Code sections 45, 52 and 55(a)(1).
|Ariz. Rev. Stat. § 44-1523. |
|Nothing contained in this article shall apply to the owner or publisher of a newspaper, magazine, or other publication of printed matter wherein such advertisement appears, or to the owner or operator of a radio or television station which disseminates such advertisement when the owner, publisher, or operator has no knowledge of the intent, design, or purpose of the advertiser. Further, nothing contained in this article shall apply to any advertisement which is subject to and complies with the rules and regulations of, and the statutes administered by the federal trade commission.|
|Ariz. Rev. Stat. § 44-1524. |
Powers of Attorney General.
|A. If the attorney general has reasonable cause to believe that a person has engaged in, is engaging in or is about to engage in any practice or transaction which is in violation of this article or order or assurance of discontinuance entered under this article, he may:|
1. Require such person to file on such forms as he prescribes a statement or report in writing, under oath, as to all the facts and circumstances concerning the sale or advertisement of merchandise by such person, and such other data and information as he may deem necessary.
2. Examine under oath any person in connection with the sale or advertisement of any merchandise.
3. Examine any merchandise or sample thereof, or any record, book, document, account or paper as he may deem necessary.
4. Pursuant to an order of the superior court, impound any record, book, document, account, paper, or sample or merchandise material to such practice and retain the same in his possession until the completion of all proceedings undertaken under this article or in the courts.
B. This section does not prohibit the attorney general from investigation of violations of this article including requesting a person to respond to a complaint filed against him. A person cannot be compelled to comply with a request to respond to a complaint except in accordance with section 44-1527.
|Ariz. Rev. Stat. § 44-1525. |
Confidentiality of Information or Evidence.
|All information or evidence provided to the attorney general shall be confidential and shall not be made public unless in the judgment of the attorney general the ends of justice and the public interest will be served by the publication thereof, provided that the names of the interested parties shall not be made public.|
|Ariz. Rev. Stat. § 44-1526. |
Subpoena; hearing; rules & regulations.
|A. To accomplish the objectives and to carry out the duties prescribed in this article, the attorney general, in addition to other powers conferred upon him by this article, may:|
1. Issue subpoenas to any person.
2. Administer an oath or affirmation to any person.
3. Conduct hearings in aid of any investigation or inquiry.
4. Prescribe such forms and promulgate such procedural rules and regulations as may be necessary to enforce the provisions of this article, which rules and regulations shall have the force of law. Such rules and regulations shall not be inconsistent with the provisions of this article.
B. The attorney general shall serve a demand or subpoena in accordance with one of the following:
1. Service within or without this state in the manner provided under applicable law or rules of procedure for the service of a summons and complaint in a civil action.
2. On a natural person by delivering the demand or subpoena or by mailing the demand or subpoena by registered mail to the person at his last known place of business, residence, or both, within or without this state.
3. On any person other than a natural person by delivering the demand or subpoena or by mailing the demand or subpoena by registered mail to the person authorized or permitted by law to receive service of a complaint and a summons in a civil action.
4. Service as the superior court may direct.
|Ariz. Rev. Stat. § 44-1527.|
Failure to supply information or obey subpoena; hearing.
|A. If any person fails or refuses to fully comply with a demand or any subpoena issued by the attorney general under sections 44-1524 or 44-1526, the attorney general may file a petition with the superior court and, after notice and hearing on the petition, request the following orders until the person complies with the demand or the subpoena:|
1. Adjudging such person in contempt of court.
2. Granting injunctive relief, restraining the sale or advertisement of merchandise by such person which is the subject of the investigation.
3. Granting such other relief as the court may deem proper.
B. If the court determines that the attorney general has reasonable cause to believe that the respondent has engaged in, is engaging in or is about to engage in any act, practice or transaction which is in violation of this article or order or assurance of discontinuance entered under this article, the court shall grant the appropriate relief.
C. If the attorney general determines that disclosure to the respondent of the evidence relied on to establish reasonable cause would not be in the best interests of the investigation, he may request and the court may examine the evidence in camera and thereafter make its determination.
|Ariz. Rev. Stat. § 44-1528.|
Remedies; injunction; other reliefs; receiver.
|A. Following an investigation made pursuant to section 44-1524 and when it appears to the attorney general that a person has engaged in or is engaging in any practice declared to be unlawful by this article, the attorney general may seek and obtain in an action in a court of competent jurisdiction an injunction prohibiting the person from continuing the practices or engaging in the practice or doing any acts in furtherance of the practice after notice as is required by the rules of civil procedure. The court may make such orders or judgments as may be necessary to:|
1. Prevent the use or employment by a person of any unlawful practices.
2. Restore to any person in interest any monies or property, real or personal, which may have been acquired by means of any practice in this article declared to be unlawful, including the appointment of a receiver.
3. Require that any profits, gain, gross receipts or other benefit obtained by means of any practice in this article declared to be unlawful be disgorged and paid to the state for deposit in the consumer remediation subaccount of the consumer restitution and remediation revolving fund established by section 44-1531.02.
4. Prohibit a person found to have violated this article from engaging in a specified trade or occupation.
B. Following an investigation made pursuant to section 44-1524 and when it appears to the attorney general that a person has engaged in or is engaging in a practice declared to be unlawful by this article and that the person is about to conceal the person's assets or the person's identity or whereabouts or leave the state, the attorney general may apply to a court of competent jurisdiction, ex parte, for an order appointing a receiver of the assets of the person. On a showing made by affidavit or other evidence that the person has engaged in or is engaging in a practice declared to be unlawful by this article and that the person is about to conceal the person's assets or the person's identity or whereabouts or leave the state, the court may order the appointment of a receiver to receive the assets of the person.
|Ariz. Rev. Stat. § 44-1529.|
Powers of receiver.
|When a receiver is appointed by the court pursuant to this article, he shall have the power to sue for, collect, receive, or take into his possession all the goods, and chattels, rights and credits, monies and effects, lands and tenements, books, records, documents, papers, choses in action, bills, notes and property of every description, including property with which such property has been mingled if it cannot be identified in kind because of such commingling, and to sell, convey, and assign the same and hold and dispose of the proceeds thereof under the direction of the court. Any person who has suffered damages as a result of the use or employment of any unlawful practice, and submits proof to the satisfaction of the court that he has in fact been damaged, may participate with general creditors in the distribution of the assets to the extent he has sustained out-of-pocket losses. The court shall have jurisdiction of all questions arising in such proceedings and may make such orders and enter such judgments therein as may be required.|
| Ariz. Rev. Stat. § 44-1530. |
Assurance of discontinuance of unlawful practice.
|In the enforcement of the provisions of this article, the attorney general may accept an assurance of discontinuance of any act or practice deemed in violation of the provisions of this article from any person engaging in, or who has engaged in, such act or practice. Such assurance may include a stipulation for the payment by such person of reasonable expenses incurred by the attorney general or as restitution to aggrieved persons, or both. Any such assurance shall be in writing and shall be filed with and subject to the approval of the superior court of the county in which the alleged violator resides or has its principal place of business or in Maricopa county. A violation of such assurance within six years of the filing thereof shall constitute prima facie proof of a violation of the provisions of this article. Such assurance of discontinuance shall not be considered an admission of a violation for any purpose.|
| Ariz. Rev. Stat. § 44-1531. |
Violations; civil penalties.
|A. If a court finds that any person has wilfully violated section 44-1522, the attorney general upon petition to the court may recover from the person on behalf of the state a civil penalty of not more than ten thousand dollars per violation.|
B. For purposes of this section, a wilful violation occurs when the party committing the violation knew or should have known that his conduct was of the nature prohibited by section 44-1522.
|Ariz. Rev. Stat. § 44-1531.01. |
Consumer protection-consumer fraud revolving fund; use of fund.
|A. The consumer protection-consumer fraud revolving fund is established to be administered by the attorney general under the conditions and for the purposes provided by this section. Monies in the fund are subject to legislative appropriation. Monies in the fund are exempt from the lapsing provisions of section 35-190. |
B. Any investigative or court costs, attorney fees or civil penalties recovered for the state by the attorney general as a result of enforcement of either state or federal statutes pertaining to consumer protection or consumer fraud, whether by final judgment, settlement or otherwise, shall be deposited in the fund established by this section, except that such costs, penalties or fees recovered by a county attorney shall be retained in such county and utilized for investigative operations for consumer protection in such county.
C. The monies in the fund shall be used by the attorney general for operating expenses, including any cost or expense associated with the tobacco master settlement agreement arbitration, consumer fraud education and investigative and enforcement operations of the consumer protection division.
D. On or before January 15, April 15, July 15 and October 15, the attorney general shall cause to be filed with the governor, with copies to the director of the department of administration, the president of the senate and the speaker of the house of representatives, a full and complete account of the receipts and disbursements from the fund in the previous calendar quarter.
E. On or before January 15, April 15, July 15 and October 15, each county attorney who retains monies pursuant to subsection B of this section shall provide the county board of supervisors with a full and complete account of the receipts and disbursements of such monies in the previous calendar quarter.
| Ariz. Rev. Stat. § 44-1532. |
Violation of order or injunction; penalty.
|A person who violates any order or injunction issued pursuant to this article shall forfeit and pay to the general fund of the state of Arizona a civil penalty of not more than twenty-five thousand dollars per violation. For the purpose of this section, the superior court in the county issuing any order or injunction shall retain jurisdiction, and the cause shall be continued. In such cases, the attorney general acting in the name of the state may petition for the recovery of civil penalties.|
|Ariz. Rev. Stat. § 44-1533. |
|A. The provisions of this article are in addition to all other causes of action, remedies and penalties available to this state.|
B. The provisions of this article shall not bar any claim against any person who has acquired any monies or property, real or personal, by means of any practice declared to be unlawful by this article.
| Ariz. Rev. Stat. § 44-1534. |
|In any action brought under the provisions of this article, the attorney general is entitled to recover costs, which in the discretion of the court may include a sum representing reasonable attorney's fees for the services rendered, for the use of the state.|
|Ariz. Rev. Stat. § 44-1691.|
|In this chapter, unless the context otherwise requires: |
1. "Consumer" means an individual.
2. "Consumer reporting agency" means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information on consumers for the purpose of furnishing consumer reports to third parties.
3. "Consumer report" means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for (a) credit or insurance to be used primarily for personal, family, or household purposes, or (b) employment purposes, or (c) other purposes authorized under section 44-1692. The term does not include any report containing information solely as to transactions or experiences between the consumer and the person making the report; or any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys his decision with respect to such request, if the third party advises the consumer of the name and address of the person to whom the request was made.
4. "Employment purposes" when used in connection with a consumer report means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee.
5. "File" when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.
6. "Person" means an individual, partnership, corporation, association, or any other entity of whatever kind or nature.
|Ariz. Rev. Stat. § 44-1692. |
Permissible use of consumer reports.
|A. Except as provided in section 44-1693, a consumer reporting agency may furnish a consumer report only under the following circumstances and no other:|
1. In response to the order of a court having jurisdiction to issue such an order.
2. In accordance with the written instructions of the consumer to whom it relates.
3. To a person that it has reason to believe:
(a) Intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer.
(b) Intends to use the information for employment purposes.
(c) Intends to use the information in connection with the underwriting of insurance involving the consumer.
(d) Intends to use the information in connection with a determination of the consumer's eligibility for any license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status.
(e) Otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer.
4. On request by the department of economic security, its agent or another agency administering a title IV-D program under the social security act certifying that:
(a) The obligor mother or the obligor father has been determined to be the parent of a child to whom a support obligation relates.
(b) The consumer report is needed to establish an obligor's capacity to make support payments or to determine the appropriate amount of the payments or for the purpose of setting an original support amount or modifying an existing support order.
(c) The obligor has received at least ten days' advance notice, by certified mail, at the last known address, by personal delivery or by personal service that a consumer report will be requested.
(d) The consumer report shall be kept confidential and shall be used only for the purposes described in subdivision (b) of this paragraph.
(e) The consumer report shall not be used in connection with any other civil, administrative or criminal proceeding or for any other purpose.
B. The report furnished in subsection A of this section may be provided by electronic or other means.
| Ariz. Rev. Stat. § 44-1693.|
Access to reports by a consumer.
|A. Upon furnishing adequate credentials by a consumer as to his identity:|
1. A creditor who denies credit to any consumer shall disclose to such consumer the name and address of any consumer reporting agency which has furnished such creditor with a consumer report on such consumer which was considered by the creditor in making the determination.
2. A licensing agency which denies a license to any consumer shall disclose to such consumer the name and address of any consumer reporting agency which has furnished such agency with a consumer report on such consumer which was considered by the licensing agency in making the determination.
3. An employer who denies a consumer employment, a promotion, retention as an employee or reassignment or does reassign the consumer, whichever is not to the advantage of the consumer, shall disclose to such consumer the name and address of any consumer reporting agency which has furnished such employer with a consumer report on such consumer which was considered by the employer in making the determination.
4. A consumer reporting agency shall disclose to any consumer the contents of its file used for the purpose of making a consumer report on that consumer, any and all facts, allegations or sources upon which such information is based and the name and address of each person requesting a report on the consumer within the previous six months. A credit reporting agency may make the disclosures in the following manner:
(a) By a trained employee of the credit reporting agency when the consumer makes the request in person.
(b) By telephone if the credit reporting agency receives a written request for a telephone disclosure from the consumer. Any toll for the telephone disclosure shall be prepaid by the consumer or charged directly to the consumer requesting the telephone disclosure.
(c) By a decoded written copy of the file or a written copy of the consumer report with an explanation of any codes used if the credit reporting agency receives a written request for a written disclosure from the consumer.
B. A consumer reporting agency shall provide trained personnel to disclose the contents of its file to consumers during normal business office hours and assist a consumer in fully understanding all items on his consumer report.
C. The consumer shall be permitted to be accompanied by one other person of his choosing, who shall furnish reasonable identification, at such time as the consumer reviews the files of the consumer reporting agency as provided in this section.
D. No consumer reporting agency nor any creditor, licensing agency or employer shall request or require any waiver of rights by any consumer. No consumer reporting agency nor any creditor or any other person shall charge any fee to a consumer for a disclosure of his file if within a thirty-day period prior to the request for a disclosure the consumer is denied credit, licensure, employment or received a notice of collection or received other adverse action due to the credit report. Except as provided for in this subsection, a consumer reporting agency may charge a reasonable fee for any disclosures of a file to the consumer or his designee.
| Ariz. Rev. Stat. § 44-1694. |
Correction of credit reports.
|A. If any consumer disputes the accuracy of any item in the consumer's records with any consumer reporting agency, the consumer may give notice in writing to the consumer reporting agency specifying in what manner the report is inaccurate and the consumer reporting agency shall reinvestigate the inaccuracy at no charge to the consumer and record the current status of the disputed information. The consumer reporting agency shall provide forms for such notice and shall assist a consumer in preparing the notice when requested. |
B. Within thirty days after receiving a notice of inaccuracy, a consumer reporting agency shall deny or admit the inaccuracy to the consumer in writing. If the consumer reporting agency denies the inaccuracy, the consumer reporting agency shall include the following information with the written results of the reinvestigation:
1. The basis for the denial.
2. A copy of the consumer's file that is based on the consumer's file as revised as a result of the reinvestigation, including the business name and address of any furnisher of information who was contacted in connection with that information and, if reasonably available, the telephone number of the furnisher.
3. A notice that states that, if requested by the consumer, the consumer reporting agency shall provide the consumer with a description of the procedure used by the consumer reporting agency to determine the accuracy and completeness of the information.
C. If the consumer reporting agency admits that the item is inaccurate, it shall immediately correct the item in its records and, on request by the consumer, it shall inform any person who within the last six months has previously received a report containing such inaccurate information.
D. A consumer may provide a statement to the consumer reporting agency and, unless there are reasonable grounds to believe that it is frivolous or irrelevant, the consumer reporting agency shall include the statement in the consumer's file if either of the following applies:
1. The statement is a written explanation regarding an item of information that the consumer reporting agency denies is inaccurate.
2. The statement is regarding the contents of the consumer's file. The consumer may provide such a statement at any time, and the consumer reporting agency shall not charge the consumer for the statement.
E. A consumer reporting agency may limit a consumer's statement as described in subsection D to not more than one hundred words if the consumer reporting agency provides the consumer with assistance in writing the statement.
|Ariz. Rev. Stat. § 44-1695. |
| A. A consumer reporting agency or information source is not liable to any consumer resulting from:|
1. Reporting inaccurate information corrected in compliance with sections 44-1694 and 44-1698 except as provided in this section.
2. Failing to lift a security freeze pursuant to section 44-1698, subsection G.
B. A consumer reporting agency is liable for any damages and attorney fees and court costs that are incurred by a consumer and that result from reporting of inaccurate information that a consumer reporting agency refuses to correct as provided in section 44-1694.
C. Any consumer reporting agency, user of information or source of information that is grossly negligent in the use or preparation of a consumer report or that acts wilfully and maliciously with intent to harm a consumer is liable to the consumer for actual damages, if any, punitive damages and attorney fees and court costs. If a consumer reporting agency prepares a consumer report, the consumer reporting agency shall follow reasonable procedures to ensure the maximum possible accuracy of the information relating to the consumer who is the subject of the consumer report.
D. Under section 44-1698, any consumer reporting agency that is grossly negligent or that acts wilfully and maliciously with intent to harm a consumer is liable to the consumer for actual damages, if any, attorney fees and court costs for the following:
1. Failing to implement a security freeze.
2. Releasing a credit report or credit score if a security freeze has been placed by the consumer.
3. Failing to remove a security freeze at the consumer's request.
| Ariz. Rev. Stat. § 44-1696. |
Unlawful acts; classification.
| A. Any person who requests or obtains a consumer report from a consumer reporting agency under false pretenses or furnishes a consumer report to any person except as prescribed by this article or any employee of a consumer reporting agency who knowingly falsifies a consumer report or any records relating thereto shall be guilty of a class 1 misdemeanor.|
B. Any person or the agent, clerk or employee thereof, who knowingly makes, causes to be made, or permits to be made, any false statement to any consumer reporting agency for the purpose of having such false information reported on a consumer report, shall be guilty of a class 1 misdemeanor.
C. Any consumer reporting agency, or the agent, clerk or employee thereof, who knowingly violates any provision of this article, shall be guilty of a class 1 misdemeanor.
| Ariz. Rev. Stat. § 44-1697. |
Fair credit reporting.
| A. If a consumer makes a payment on a credit or loan account to the proper address to which the payment should be directed, a person shall calculate the number of days by which an account is delinquent by determining the number of days between the scheduled due date of the payment and the date the payment was received by that person.|
B. If a person uses a reporting standard that requires a calculation of the number of days an account is delinquent, the person may report the delinquency based only on the number of days of the delinquency plus not more than four days.
| Ariz. Rev. Stat. § 44-1698. |
Security freeze on credit reports and credit scores; fees; definitions.
|A. A consumer may request in writing or in a form acceptable to the consumer reporting agency that a consumer reporting agency place a security freeze on the consumer's credit report. If a security freeze is in place, a consumer reporting agency shall not release a consumer's credit report or consumer's credit score to a third party without the consumer's prior express authorization. This subsection does not prevent a consumer reporting agency from advising a specific party that a security freeze is in effect with respect to the consumer's credit report.|
B. A consumer reporting agency shall place a security freeze on a consumer's credit report not later than ten business days after receiving a written request from the consumer.
C. The consumer reporting agency shall send a written confirmation of the security freeze to the consumer within ten business days after placing the security freeze on the consumer's credit report and shall provide the consumer with a unique personal identification number or password, other than the consumer's social security number, that the consumer may use to provide authorization for the release of the consumer's credit report for a specific period of time and to remove the security freeze.
D. A security freeze remains in effect until the consumer requests that the security freeze be removed or temporarily lifted as provided in this section. A consumer may request that a security freeze be removed or temporarily lifted by mail, telephone, internet or other electronic contact method in a form acceptable to the consumer reporting agency. A consumer reporting agency shall require proper identification of any person who makes a request to place or remove a security freeze.
E. On requesting removal, the consumer shall provide the following information:
1. Proper identification.
2. The unique personal identification number or password that the consumer reporting agency provided to the consumer.
F. On requesting a temporary lift to allow a credit report to be accessed for a specific period of time, the consumer shall contact the consumer reporting agency and shall request that the security freeze be temporarily lifted and shall provide the following information:
1. Proper identification.
2. The unique personal identification number or password that the consumer reporting agency provided to the consumer.
3. The proper information regarding the specific time period for which the credit report shall be available to users of the credit report.
G. A consumer reporting agency shall remove or temporarily lift a security freeze from a consumer's credit report within:
1. Three business days after receiving the consumer's request for the removal or temporary lift by mail.
2. Fifteen minutes after receiving the consumer's request through the use of telephone, internet or other electronic contact method in a form acceptable to the consumer reporting agency, during normal business hours. The consumer reporting agency is not required to remove or temporarily lift the security freeze within the fifteen minute time limit if the agency's ability is prevented by any of the following:
(a) An act of God, including fire, earthquakes, hurricanes, storms or similar natural disaster or phenomena.
(b) Unauthorized or illegal acts by a third party, including terrorism, sabotage, riot, vandalism, labor strikes or disputes disrupting operations or similar occurrence.
(c) Operational interruption, including electrical failure, unanticipated delay in equipment or replacement part delivery, computer hardware or software failures inhibiting response time or similar disruption.
(d) Governmental action, including emergency orders or regulations, judicial or law enforcement action or similar directives.
(e) Regularly scheduled maintenance, during other than normal business hours of, or updates to, the consumer reporting agency's systems.
(f) Commercially reasonable maintenance of, or repair to, the consumer reporting agency's systems that is unexpected or unscheduled.
(g) Receipt of a removal or temporary lift request outside of normal business hours.
H. A consumer reporting agency shall remove or temporarily lift a security freeze placed on a consumer's credit report only in the following cases:
1. If the consumer requests removal pursuant to subsection E or a temporary lift pursuant to subsection F.
2. If the consumer's credit report was frozen as a result of a material misrepresentation of fact. If a consumer reporting agency intends to remove a security freeze on a consumer's credit report pursuant to this paragraph, the consumer reporting agency shall notify by mail, telephone, internet or other electronic contact method the consumer before removing the security freeze on the consumer's credit report.
I. When a consumer requests a security freeze, the consumer reporting agency shall disclose the process for placing and for removing or temporarily lifting a freeze and the process for allowing access to information from the consumer's credit report for a specific period of time while the security freeze is in place.
J. If a third party requests access to a credit report on which a security freeze is in effect, the request is in connection with an application for credit or any other use and the consumer does not allow the consumer's credit report to be accessed for a specific period of time, the third party may treat the application as incomplete.
K. A consumer reporting agency may charge a five dollar fee for each security freeze, removal of the freeze or temporary lift of the freeze for a period of time on the consumer's credit report. A consumer reporting agency shall not charge a fee to a victim of identity theft who submits a valid police report that alleges a violation of section 13-2008, 13-2009 or 13-2010.
L. A consumer reporting agency may charge a five dollar fee if the consumer fails to retain the original unique personal identification number or password provided by the consumer reporting agency and the consumer reporting agency must reissue the unique personal identification number or password or provide a new unique personal identification number or password to the consumer.
M. If a security freeze is in place, a consumer reporting agency shall not change a consumer's name, date of birth, social security number or address in the consumer's credit report without sending a written confirmation of the change to the consumer within thirty days after the change is posted to the consumer's file. Written confirmation is not required for technical modifications of a consumer's official information, including name and street abbreviations, complete spellings or transposition of numbers or letters. For the purposes of address changes, the consumer reporting agency shall send the written confirmation to both the new address and the former address.
N. This section does not apply to the use of a credit report or credit score by any of the following:
1. A person, a subsidiary, affiliate, agent or subcontractor of that person, an assignee of a financial obligation owed by the consumer to that person or a prospective assignee of a financial obligation owed by the consumer to that person in conjunction with the proposed purchase of the financial obligation with which the consumer has or had before assignment an account or contract, including a demand deposit account, or to whom the consumer issued a negotiable instrument, for the purposes of reviewing the account or collecting the financial obligation owed for the account, contract or negotiable instrument. For the purposes of this paragraph, "reviewing the account" includes activities that are related to account maintenance, monitoring, credit line increases and account upgrades and enhancements.
2. A subsidiary, affiliate, agent, assignee or prospective assignee of a person to whom access has been granted under this section for the purpose of facilitating the extension of credit or other permissible use.
3. Any state or local agency, law enforcement agency, trial court or private collection agency acting pursuant to a court order, warrant or subpoena.
4. A child support agency acting pursuant to title 25, chapter 3, article 2 or title IV-D of the social security act.
5. The department of health services or its agents or assigns acting to investigate fraud.
6. The department of revenue or its agents or assigns acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities.
7. The department of transportation or its agents or assigns acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities.
8. The administrative office of the courts to conduct audits or investigate fraud or for applicant screening.
9. Any agency or entity for the purposes of prescreening or postscreening as provided for by the federal fair credit reporting act (15 United States Code section 1681b).
10. Any person or entity that administers a credit file monitoring subscription service to which the consumer has subscribed.
11. Any person or entity for the purpose of providing a consumer with a copy of the consumer's credit report or consumer's credit score on the consumer's request.
12. Except as otherwise provided by law, a person setting or adjusting a rate or claim or underwriting for insurance purposes.
13. Any person who uses a consumer reporting agency's database or file that consists entirely of information concerning, and is used solely for, one or more of the following:
(a) Criminal record information.
(b) Fraud prevention or detection.
(c) Tenant screening.
(d) Employment screening.
14. Any state or federally regulated bank or financial institution for checking, savings and investment accounts.
O. The following entities are not required to place a security freeze on a credit report:
1. A check services or fraud prevention services company that issues reports on incidents of fraud or authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers or similar methods of payments.
2. A deposit account information service company that issues reports regarding account closures due to fraud, substantial overdrafts, automated teller machine abuse or similar negative information regarding a consumer to inquiring banks or financial institutions for use only in reviewing a consumer request for a deposit account at the inquiring bank or financial institution.
3. A consumer reporting agency that acts only as a reseller of credit information by assembling and merging information contained in the database of another consumer reporting agency or multiple consumer reporting agencies and that does not maintain a permanent database of credit information from which new credit reports or credit scores are produced.
P. An act or practice in violation of this section is an unlawful practice under section 44-1522 and is subject to enforcement through a private action and by the attorney general. Injunctive relief may be sought to prevent future violations of this section. The remedies provided in this section are not intended to be the exclusive remedies available to a consumer. This subsection does not apply to subsection G, paragraph 2 of this section.
Q. For the purposes of this section:
1. "Proper identification" means information that is generally deemed to be sufficient to identify a person under the circumstances.
2. "Security freeze" means a notice that is placed in a consumer's credit report at the request of the consumer and that prohibits the consumer reporting agency from releasing the consumer's credit report without the express authorization of the consumer.
| Ariz. Rev. Stat. § 44-1698.01. |
Consumer credit reports; extension of credit; identity theft; definition.
|A. Any person who does not use a consumer credit report in connection with the approval of credit based on the application for an extension of credit shall not lend money or extend credit without taking reasonable steps to verify the consumer's identity and confirm that the application for an extension of credit is not the result of taking the identity of another person or entity pursuant to section 13-2008 or aggravated taking the identity of another person or entity pursuant to section 13-2009.|
B. Any person who uses a consumer credit report in connection with the approval of credit based on the application for an extension of credit shall not lend money or extend credit without taking reasonable steps to verify the consumer's identity and confirm that the application for an extension of credit is not the result of taking the identity of another person or entity pursuant to section 13-2008 or aggravated taking the identity of another person or entity pursuant to section 13-2009 if either of the following applies:
1. The creditor has received notification that a police report has been filed with a consumer reporting agency and that the applicant has been a victim of an offense involving a violation of section 13-2008 or 13-2009.
2. The creditor has received notification that the consumer has placed a fraud alert or security freeze on the consumer's credit report.
C. In an action to collect on a debt as a result of an extension of credit, if a consumer proves by a preponderance of the evidence that an extender of credit extended the credit in violation of this section, the finder of fact may infer someone other than the consumer applied for and received the benefit of the extension of credit.
D. An act or practice in violation of this section is an unlawful practice under section 44-1522 and is subject to enforcement through private action and by the attorney general. Injunctive relief may be sought to prevent future violations of this section. The remedies provided in this section are not intended to be the exclusive remedies available to a person whose identity was used to secure an extension of credit in violation of this section.
E. For the purposes of this section, extension of credit does not include an increase in an existing open-end credit plan, as defined in regulation Z of the federal reserve system, 12 Code of Federal Regulations section 226.2, or any change to or review of an existing credit account.
F. Financial institutions that are required to have a customer identification program pursuant to 31 Code of Federal Regulations section 103.121 are exempt from this section.
G. For the purposes of this section, "reasonable steps" means any commercially reasonable action taken by an extender of credit that is intended to improve identity verification or confirmation or to lessen the likelihood of a violation of sections 13-2008 and 13-2009.