Relates to defining a "protected consumer" as an individual who is under the age of eighteen years

1 Co-sponsor

• Bill Perkins

Title of bill

An act to amend the general business law, in relation to the definition of "protected consumer"

Purpose

Relates to defining a "protected consumer" as an individual who is under the age of 18 years.

Summary of provisions

Section 1 amends subdivision (o) of section 380-a of the general business law, as added by chapter 441 of the laws of 2014 to read as follows: The term "protected consumer" will mean an individual who is under the age of eighteen years of age at the time a request for the placement of a security freeze is made.

Section 2 Effective date.

Justification

According to the Federal Trade Commission (FTC), a child's social security number can be used by identity thieves to apply for government benefits, open bank and credit card accounts, apply for a loan or utility service, or rent a place to live. According to a 2011 report from ID Analytics, an identity theft protection firm, an estimated 140,000 minors are at risk of becoming victims of identity theft each and every year. Another 2011 study, from CyLab, a research center at Carnegie Mellon University, examined 43,000 children who were registered with a commercial identity protection service and found that 10% of them had someone else using their social security number. Cylab also documented that kids under the age of 18 are 51 times more likely to become victims of identity theft than their parents. The FTC advises parents to check their children's credit reports to see if their personal information is being misused, and to take immediate action if it is. However, there is a glaring error in the law in which no mechanism currently exists for parents of children in New York State ages 17 to take proactive measures to protect their children's credit. This bill would include seventeen year olds within the scope of protections.

In 2014, New York amended its general business law to line up with other state laws in line with state laws which require credit reporting agencies to allow a parent to freeze their child's credit even when no file exists, thereby averting the potential for identity theft to occur in the first place. That law defined a "protected consumer" as anyone under the age of 16.

Child identity theft is a particularly egregious problem because it may go undetected for years, until the child applies for student loans, other forms of credit, or even a job. Further, child identity theft is particularly detrimental because it can postpone college admission due to student loan denials, gaining employment, accessing credit, and renting or purchasing a home. These delays can last for months or even years, until the child can dispute the fraudulent activity and have the activity cleared from their credit report. In our global world, and in light of data-sharing of our children's personally identifying information, it is imperative that parents have a way to protect their children's credit records. Thus raising the age of a "protected consumer" to under the age of 18 is imperative so that all minors are afforded these vital protections.

Legislative history

A new bill. FISCAL IMPLICATIONS :

None to the state.

Local fiscal implications

None.

Effective date

This act shall take effect immediately.