ST. PAUL -- Minnesota's elderly would be especially aided by bills going through the Legislature to curb identity theft, a Senate committee heard Wednesday.
"Fully one quarter of Minnesota residents have been affected by this kind of crime," said Hubert "Skip" Humphrey, former state attorney general and current president of the AARP senior citizen group.
"Older people are particularly attractive targets," he added, because they often have more savings and home equity, and most long have carried good credit.
The Senate Commerce Committee combined several proposals to make one that:
E Allows consumers to "freeze" their credit reports so their financial information can be shared only with their consent.
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E Lets consumers check their credit reports monthly, for a fee.
E Mandates businesses to thoroughly dispose of records with personal information.
E Gives identity victims ways to restore good credit after an ID theft.
The bill moved to the Senate Judiciary Committee, probably its last stop before a full Senate vote. A similar bill is moving through the House committee system.
Allowing consumers to freeze credit reports is a key in the bill by Sen. Dan Sparks, DFL-Austin. The freeze could be lifted by the consumer when applying for credit.
Sparks said the freeze is important because it allows law enforcement officers time to investigate ID theft complaints
Often when ID thefts occur, a person doesn't know his credit report is adversely affected until a financial institution rejects a credit application.
"You would know who you release your credit to," Sparks said.
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Bob Johnson of the Insurance Federation of Minnesota warned about too strong a law.
"We are in an information economy nationally and internationally," Johnson said, and making it more difficult to transfer information could affect commerce.
"Minnesota is doing well" in protecting consumers, Johnson said.
Buzz Anderson of the Minnesota Retailers Association said Sparks' freeze could delay purchases because credit reports may not be available immediately. Without a credit report, a store may not be able to approve a person's credit, he added.
"Credit agencies are so quick to spread the word," said Sen. Mike McGinn, R-Eagan.
Joe Witt of the Minnesota Bankers' Association supported the bill.
"Banks take the financial hit in those situations," he said of ID thefts. "It is the lifeblood of our business to make sure we maintain that data securely."
Identity theft is when someone uses stolen financial information for their own benefit, such as to obtain credit cards and loans.
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"Our personal and financial information is too easy for criminals to find, steal and wreak havoc on our credit reputation," Humphrey said.
