11.26.01

Senator Cantwell Introduces Reclaim Your Identity Act to Combat Identity Theft

Attorney General, King County Sheriff, and Consumer Organizations Express Strong Support for Measure

(SEATTLE, WA) - Flanked by State Attorney General Christine Gregoire, King County Sheriff Dave Reichert, victims of identity theft, and representatives of consumer groups, U.S. Senator Maria Cantwell (D-Wash.) today announced that she would introduce the Reclaim Your Identity Act of 2001 to combat the growing problem of identity theft Tuesday in Washington D.C.

The bill fights identity theft by empowering consumers to reclaim their identity and protecting consumers' good name from bad credit generated by fraud. The bill also increases information flow about identity theft between local, state, and federal law enforcement agencies to aid anti-terrorism activities. Finally, the bill preserves consumer rights to sue creditors in response to the recent Supreme Court ruling limiting consumer rights in TRW v. Andrews.

"I am introducing the Reclaim Your Identity Act as the holiday shopping season begins because as credit card usage peaks, consumers deserve the tools they need to protect their identity," said Senator Cantwell.

Senator Pat Leahy (D-VT), Chairman of the Judiciary Committee, applauded Senator Cantwell. "Unfortunately, identity thief victimizes tens of thousands of Americans every year," said Leahy. "I commend Senator Cantwell for her leadership on protecting private financial information. I look forward to working with her on legislation to provide consumers across America with the protections that they need and deserve."

Reverses U.S. Supreme Court's new limitations on consumer rights

The Reclaim Your Identity Act addresses the recent U.S. Supreme Court ruling which denied a California woman the right to sue a credit reporting agency for allowing bad credit caused by identity theft to build up on her record. The Court ruled that the two-year statute of limitations in the Fair Credit Reporting Act ran from the time the crime was committed even though the victim did not learn of the crime until more than two years had passed. As a result, her right to sue was denied. The bill would revise the statute of limitations so that the two-year period would not begin until the victim became aware of the fraud.

Based on Washington state law which empowered consumers

The bill is based on Washington state's new identity theft legislation, enacted in July 2001. One of the key provisions of Washington state's new law requires business to disclose records about identity theft to victims of the crime.

"Believe it or, when your identity is stolen, many businesses won't give you the records you need to reclaim your identity," said Cantwell. "This bill puts you first by requiring businesses to give you relevant records."

Washington State Attorney General Christine Gregoire, who led the fight for Washington state's law, strongly supports Cantwell's bill. "I am pleased that Senator Cantwell is building on ideas first developed and implemented here in Washington state at the national level," said Gregoire.

Cantwell said that nationalizing Washington state's disclosure requirements would help Washingtonians as much as consumers in other states. "When your TV is stolen, you know it was taken from your living room. But when your identity is stolen, it could be stolen from anywhere, and businesses from every state could be involved. That's why we need a federal solution to this problem," said Cantwell.

Bill helps fight identity theft associated with terrorism

This bill helps fight terrorism in two ways. First, by giving victims more rights to get relevant records from businesses, it increases information available to victims and to law enforcement and therefore increases the likelihood that any identity theft associated with terrorist activities will be caught. Second, it specifically directs the federal committee studying implementation of federal identity theft laws to examine ways in which the federal government can better share information it may have on terrorists involved in identity theft with state and local governments.

Supported by consumer advocates

The Consumers Union, Identity Theft Resource Center, and Privacy Rights Clearinghouse all support Cantwell's legislation. Frank Torres, Legislative Counsel for Consumers Union, said, "This bill represents a big step forward in helping consumers who are victims of identity theft."

Jenni D'Avis, a victim of identity theft, said the bill would help others reclaim their identity with greater ease than she experienced. "I had to become Nancy Drew," said D'Avis. "This bill creates a process for investigating thefts of your identity."

Supported by local law enforcement

The bill expands the role of state and local law enforcement in federal identity theft policy-making. King County Sheriff Dave Reichert said "I am pleased to see the inclusion of provisions in the bill which require state and local representation in federal oversight of identity theft laws."

Identity theft is America's fastest growing crime

According to the Federal Trade Commission, identity theft is the fastest growing crime in America. Last year there were over 500,000 new victims of identity theft and, according to the Department of Treasury, reports of identity theft from financial institutions grew by 50% from 1999 to 2000. From March 2001 to June 2001, the number of ID theft victims contacting the FTC jumped from 45,500 to 69,400, a 50% increase in just three months. One in five Americans or a member of their families has been a victim of identity theft. Washington state, which recently enacted new strong identity theft legislation, ranks in the top 10 for identity theft per capita.

Victims need help in dealing with identity theft. More than 30% of victims have no information about the suspect despite the fact that the suspect is supplying creditors information which would be useful to the victim. On average, it takes 12 months for a victim to learn that he or she has been a victim of identity theft. It takes another 175 hours and $808 of out-of-pocket expenses to clear their names.