LANSING – The Michigan House of Representatives today passed a bill introduced by House Majority Floor Leader Kathy Angerer (D-Dundee) to protect Michigan residents from identity theft. Angerer's bill is part of a comprehensive, bipartisan package to toughen penalties for identity thieves and strengthen consumer protections for victims.
"Today's criminals are much more sophisticated than someone on the street demanding your wallet, and we have to make sure consumers are protected from them," Angerer said. "More and more these days, criminals use high-tech tactics to steal something far more valuable than the money in your pocket – your identity. As criminals evolve, so must our consumer protection laws. This legislation will make sure Michigan's laws do not fall behind."
Angerer's bill, House Bill 4729, will create the Identity Theft Commission within the Michigan Department of Information Technology to study new and evolving ways to prevent identity theft. Other key parts of the package that passed the House today will:
- Force identity thieves to compensate victims for damage done to their financial affairs and credit history, and require courts to order restitution for victims.
- Require businesses to have a written identity theft prevention plan to protect consumers.
- Protect customers' personal information by requiring that any data that includes unencrypted or unredacted personal information be destroyed when it is removed from the database of a business or agency.
- Prohibit an individual from using another person's personal information to mislead law enforcement officials or courts regarding an individual under investigation.
Identity theft is the fastest growing type of fraud in the country. In 2008, roughly 9.9 million Americans reported being victims of identity theft – a 22 percent increase from 2007, according to the U.S. Congressional Research Service. According to the Federal Trade Commission (FTC), identity theft costs consumers nearly $50 billion each year.
"Once a person becomes a victim of identity theft, it can take years and thousands of dollars to get their life back – that's why prevention is so important," Angerer said. "This legislation will attack this growing crime head on and will give our consumers the confidence that their information is secure. I applaud my colleagues for approving these tough new protections for our residents."