Great Lakes Politics

Michigan residents can prevent criminals from stealing their identities under new legislation unveiled today by House Republicans that will continue the caucus' push to help reduce the growing number of ID theft crimes in the state.

State Representatives Rick Baxter (R-Concord), David Farhat (R-91, Fruitport) and John R. Pastor (R-19, Livonia) unveiled legislation this morning to better protect residents' personal financial information. The bills allow consumers to register to be notified when a new line of credit is opened in their name, streamline process of recovering stolen information for consumers and put a time limit on how long businesses can hold a consumer's account and credit card information.

"To protect seniors and consumers our laws should focus on crime prevention and stopping the thieves before they get away with someone's identity," explained Baxter. "Our current ID theft laws are working, but we can always do more to ensure Michigan residents do not become victims of this appalling crime."

The Farhat bill streamlines the process of repairing the effects of having personal checks stolen. Once filing a police report, the individual presents their bank with an Affidavit of Forgery, which ensures the banks stop the stolen checks and notify the merchants of the crime. The Baxter bill creates the option for all Michigan residents to be placed on the Office of Financial and Insurance Services Credit Activity List, a quarterly report given to consumer reporting agencies. Consumer reporting agencies then notify the individuals who are on the list when any new line of credit opens in their name.

The Pastor bill would prohibit a person or business from retaining any part of a consumer's credit card or account number after the transaction is completed for more than 4 years, or for more than the period established between the person and the credit card issuer.

"Stopping personal checks before ID theft takes place and notifying individuals when a credit card opens up in their name are two critical steps to stopping ID theft," said Farhat. "Innocent victims in Michigan should not have to prove their identification was tampered with, nor should they have to fall victim to the hassle that surrounds recovering their identification."

Pastor, said: "A consumer's credit card and account information should not be accessible for longer than necessary. Implementing a time limit for businesses that retain valuable consumer information is needed to ensure this information is not out there long enough for it to get in the wrong hands."

These bills improve upon a comprehensive ID theft package enacted by House GOP in 2004 that created the Identity Theft Protection Act, listed ID theft as an unlawful practice of trade or commerce and established the right of an ID theft victim to obtain a police report.

The legislation is part of a month of reform, in which House Republicans have focused on cutting government bureaucracy, protecting residents and children, decreasing mortgage fraud and creating jobs.