LANSING – The Michigan House of Representatives today passed a plan introduced by State Representative Lee Gonzales (D-Flint Township) to help better protect Michigan residents from identity theft. The plan is part of a comprehensive package to toughen penalties for identity thieves and strengthen consumer protections for victims.
"Imagine waking up one day to find out that someone else has used your identity to buy a car or commit a crime," Gonzales said. "In just a matter of minutes, these criminals can do things to your good name that can take years to fix. That's why these laws are needed now. Michigan consumers deserve stronger protections."
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.
- Require businesses to have a written identity theft prevention plan to protect consumers.
- Protect customers' personal information by requiring that any data that includes unencrypted or unredacted personal information be destroyed when it is removed from a database.
- 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.
"With the amount of information that's transmitted electronically these days, ensuring that we have strong laws in place to protect residents' personal information is absolutely essential," Gonzales said. "This bipartisan plan will toughen penalties for perpetrators of this crime and make sure they pay for the harm they inflict on innocent people. I applaud my colleagues for standing up for the people of Michigan with their support of this plan."