Requires credit reporting agencies to furnish proof of identity theft to creditors upon debtor's request

Summary of specific provisions

This bill adds a new section to Chapter 63, Section 380-v of the general business law.

Section 1 of the bill requires credit reporting agencies to keep all submitted documentation indicating proof of identity theft for seven years and to furnish such information to all creditors upon the request of the victim.

Subsection 2 of section 380-v the bill defines proof of identity theft as follows:

a) a copy of a valid police report tiled by the victim alleging the crime of identity theft;

b) a written statement by the victim claiming to be a victim of identity theft with respect to the specific debt being collected by the creditor.

Section 3 of the bill defines a written statement to be as follows:

a) a signed federal trade commission ID theft victim's affidavit;

b) a written statement that certifies to be true under penalty of law that the victim is a victim of identity theft and did not incur the debt or authorize the use of their name or personal information for incurring the debt;

Subsection 3 requires the following to contain or accompany the written statement with respect to the relevance of the debt:

a) a copy of the victim's driver's license or state issued identification card, documentation of the residence of the victim at the time of the alleged debt; any available correspondence disputing the debt after transaction information has been provided to the victim;

b) any information concerning who may have incurred the debt such as the identification of any person who the victim believes is responsible;

c) a telephone number for contacting the victim concerning any additional information or questions, or direction that further communicates to the victim be in writing only;

Subsection 4 defines the written certification as defined in Section 3 to be sufficient if it is substantially in the following form:

"I certify the representation made are true, correct and contain no material omissions of fact" Date and Place {Signature)

Justification

Usually when there has been a case of identity theft, the victim's personal information is used to open several different accounts. Those accounts are then utilized and not paid for, eventually ending up in collections. Collection action can occur immediately or take up to six and a half years before it is put on the victim's credit report. While there may be an instance in which the victim has found out about the debt via letter, phone call or reviewing a copy of their credit report and has disputed and proven to be a victim, because of the lag in collections, the information stolen may not get collected on from another creditor until years latex, thereby leaving the victim to have to prove once again that they have been a victim of identity theft.

This is an inconvenience for the victim and a burden that they shouldn't have to sustain as it is not their fault that there is a lag in collections. This bill would define what proof is needed in regards to proving identity theft as well as require that once proof has been established, that the credit bureau must keep the proof for a period of seven years and furnish it immediately to the credit or upon the victim's request.

Prior legislative history

2012-13: S.3229/A.5165 - Referred to Consumer Protection 2011-12: S.1468/A.4026 - Referred to Consumer Protection 2009-10: S.2282/A.7181 - Referred to Consumer Protection 2008-09: S.8677 - Referred to Rules

Fiscal implications

None.

Effective date

This act shall take effect on the ninetieth day after it shall have become law.