LANSING – Rep. Mike Lahti (D-Hancock) today announced that the Michigan House of Representatives overwhelmingly approved a plan to fight identity theft by allowing residents to place a security freeze on their credit report. The legislation also prohibits a credit-reporting agency from releasing or using information without proper authorization.
"With identity theft spreading across Michigan like wildfire, we need to take quick action to help consumers protect their personal information," Lahti said. "This plan gives consumers the power to put their personal identities under lock and key. It is the right thing to do in order to strengthen our consumer protection laws, and I'm pleased to see the House act quickly on this important safety measure."
The legislation features security provisions including a personal identification number (PIN) that gives users easy access to their personal and confidential credit information.
According to the Identity Theft Resource Center, 10 million people are harmed by identity theft each year. That means about 19 individuals become identity theft victims every minute. According to the U.S. Department of Justice Bureau of Justice Statistics, identity theft has passed drug trafficking as the number one crime in the nation and costs businesses and consumers billions of dollars each year.
The bill also combats identity theft crime by locking down unsecured access to consumers' credit information, thereby limiting security breaches, and allows consumers to freeze all accounts, limiting access to those records through the sole use of the consumer's PIN. The freeze will remain in effect on all accounts through the three official credit reporting agencies until the consumer chooses to lift it. The freeze is free to seniors and victims of identity theft. Other consumers pay a minimal one-time charge. Consumers can lift the freeze on their identities within minutes.
"We must give consumers all the tools they need to protect their personal financial information, and this plan does that," commented Lahti. "Identity theft has threatened citizens in the U.P. and across Michigan for far too long. This legislation will give Michigan consumers the control they need to protect themselves from this type of crime."
House Bill 4103 passed on a 105-0 vote. The bill now heads to the Senate for consideration.