AARP-Backed Identity Theft Proposal Now Law

Source: AARP.org | May 30, 2006

Identity theft—one of the fastest growing crimes in the nation— happens when someone uses stolen financial information when applying for loans, credit cards, or leases. Older consumers often are attractive targets for identity thieves because they tend to have accumulated more savings and home equity, and have a long credit history.

That's why more than 500 AARP members came to the State Legislature in 2006 and asked their lawmakers to pass a law to protect consumers from this growing crime.

The Minnesota State Legislature did just that. Starting August 1, 2006, all consumers can place a security "freeze" on their credit reports. A freeze allows you to control the release of your credit information, and is a good way to prevent identity theft.

"Consumers are fed up with this crime—and now have a way to control who gets their personal information," said State President Hubert H. (Skip) Humphrey III. "A security freeze is an excellent way to prevent identity thieves from accessing your information."

The new law also includes a "thaw" provision that allows consumers who have frozen their credit to still obtain timely access to credit for major purchases. Most consumers will pay a $5 fee for each freeze and each thaw—unless the consumer has been a victim of identity theft. Victims of identity theft will not pay a fee to use this service.

State Representatives Paul Kohls (R-Victoria) and Jim Davnie (DFL- Minneapolis) and State Senator Dan Sparks (DFL-Austin) were the key authors of the bill in the Legislature.

AARP also fought to require more businesses to notify consumers after a security breach, when consumers' information may have been lost or stolen. The law now requires health care companies (those covered by HIPAA) to notify consumers—but their remains an exemption from the law for financial institutions and banks. Financial institutions argued that they are already required to protect consumers under federal guidelines. AARP will continue to work at the state and federal level to ensure that consumers are adequately notified by financial institutions when a security breach occurs.

The law goes into effect on August 1, 2006. To place a security freeze on your credit, contact the 3 major credit bureaus.

Equifax
800-685-1111
800-525-6285

Experian
888-397-3742
888-397-3742

TransUnion
800-888-4213
800-680-7289

Other Resources

• Privacy Rights Clearing House or call 619-298-3396
• Identity Theft Resource Center