IDENTITY THEFT
Identity Theft
There are sweeping new laws to attempt to protect the victims of identity theft. Identity theft is viewed as the most prevalent white collar crime today.
This new law requires a consumer credit reporting agency to promptly and permanently block certain information when a consumer provides a valid copy of Department of Motor Vehicle investigative report indicating that another person has unlawfully used the consumer's personal identifying information. Inquiries on the credit report that were initiated as the result of identity theft are to be deleted from the consumer credit report.
Any person or entity of such as a credit union, who uses a consumer credit report in connection with a credit transaction and discovers the address on the consumer credit report does not match the address of the consumer requesting or being offered credit, must take reasonable steps to verify the accuracy of the consumer's address and confirm that the credit transaction is not the result of defined identify theft. Similar requirements are placed upon the user of a consumer credit report, which would include credit unions, when one receives specific notification from a consumer credit reporting agency, that information in the report has been blocked as the result of identity theft. The creditor must use reasonable steps to verify the address.
Victims of identity theft can now sue, including filing a cross-claim when they are sued for a debt due to identity theft. The victims of identity theft can obtain a judgment declaring that they are not obligated on the claim, a declaration that the security interest on the victim's property is void, an injunction restraining attempts to collect on the claim and recover actual damages and a civil penalty up to $30,000, plus reasonable attorneys fees and costs. Thus, it is incumbent for all creditors to use care in matching the address on the consumer credit report with that provided on a credit application as well as caution when the consumer credit report shows blocked information as a result of identity theft.
Creditors who wish to sell a consumer debt to a debt collector are prohibited from doing so if the consumer's file with the consumer credit reporting agency is blocked or the creditor has reason to believe that the consumer is a victim of identity theft.
Finally, a consumer who is a victim of identity theft can specify either verbally or in writing, that his or her name shall be removed from lists that a consumer credit reporting agency furnishes for credit card solicitations for a minimum of two (2) years, and that consumer credit union agency will be required to inform a consumer of this option.
The Crime of Identity Theft
Before this year identity theft was already a crime in the State of California, providing for punishment by imprisonment in a county jail not to exceed one year, a fine not to exceed $1,000 or both, or by imprisonment in a state prison, a fine not to exceed $10,000 or both. The law has been changed to eliminate the requirement that the person who uses another person's personal identifying information for an unlawful purpose obtain that information without that person's consent. Therefore, now for the crime of identity theft, it does not matter whether the information was obtained with or without the person's consent.
