LANSING – State Representatives Frank Accavitti (D-Eastpointe), Steve Bieda (D-Warren) and Fred Miller (D-Mount Clemens) today voted for a plan to fight identity theft by allowing residents to place a security freeze on their credit report. The proposal, which overwhelmingly passed the Michigan House of Representatives, also prohibits a credit-reporting agency from releasing or using information without proper authorization.
"This plan empowers consumers to safeguard their most sensitive personal information," Accavitti said. "Identity theft is an epidemic in this country, and I am pleased that the House moved quickly on this important measure."
The plan features security provisions including a personal identification number (PIN) that gives users easy access to their personal and confidential credit information.
According to the IdentityTheftResourceCenter, 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, identity theft has surpassed drug trafficking as the No. 1 crime in the nation and costs businesses and consumers billions of dollars each year.
"Michigan residents need all the tools they can get to fight identity theft to the fullest," Bieda said. "This plan gives people more control over their own personal financial information. It's the right thing to do."
The legislation combats this crime by locking down unsecured access to consumers' credit information, limiting security breaches. The bill lets consumers freeze all accounts, limiting access to those records through the sole use of the consumers' PIN. The freeze will remain in effect on all accounts through the three official credit reporting agencies until the consumer chooses to lift it.
"We have the power to protect so many other important possessions in our lives — our cars, our homes. We should also have the power to protect our own financial information," Miller said. "This is an important safety measure for Michigan consumers."