LANSING – The Michigan House of Representatives today passed a plan introduced by State Representative Robert Dean (D-Grand Rapids) to help better protect Michigan residents from identity theft. Dean's plan is part of a comprehensive package introduced by House Democrats to toughen penalties for identity thieves and strengthen consumer protections for victims.
"Identity theft is on the rise, and frankly, it's been threatening residents in Grand Rapids and across the state for far too long," Dean said. "We need to take quick action to give Michigan consumers the tools they need to protect themselves from this ever-growing threat. This plan will make sure residents are the ones in control of their personal information so it doesn't fall into the wrong hands."
Dean's plan will 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. Other key parts of the plan 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.
- Create the Identity Theft Commission within the Michigan Department of Information Technology to study new and evolving ways to prevent identity theft
- Require businesses to have a written identity theft prevention plan to protect consumers.
- 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, about 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.
"The key to avoiding identity theft is deterrence and prevention," Dean said. "At a time when there is so much financial uncertainty in our state, our residents need these protections to make sure criminals are not depleting their bank accounts or ruining their credit. In addition to safeguards for our consumers, our plan toughens penalties against the faceless predators who steal identities. I applaud my colleagues for standing up for our residents by protecting their personal information."