WASHINGTON,
D.C. – Saying that victims of identity theft must have a fair opportunity
and enough time to vindicate their rights, U.S. Representative Jan Schakowsky
(D-IL) today introduced the Protect Victims of Identity Theft Act of 2001
with U.S. Representative Spencer Bachus (R-AL), Chairman of the Subcommittee
on Financial Institutions and Consumer Credit.
“Finding
out that a thief has ruined your credit history and stolen your identity
is bad enough. Discovering that it’s too late to hold someone accountable
is even worse. Congress must change existing law to protect the rights
of consumers,” said Schakowsky, who is a member of the Financial Services
Committee.
The
bipartisan bill would safeguard the rights of victims of identity theft
and was introduced in response to a recent Supreme Court ruling.
The Supreme Court interpreted a provision in the Fair Credit Reporting
Act to mean that current law only protects victims within two years of
the time the fraud occurs. In other words, consumers must discover
the identity theft within two years if they wish to seek damages from the
credit reporting company that has failed to protect their private information.
The Bush Administration filed a brief in May urging the Supreme Court to
side with consumers.
The
Schakowsky/Bachus legislation would change the law so that the two-year
statute of limitations for identity theft would not begin until the consumer
discovers the problem or should have discovered it through the “exercise
of reasonable diligence.”
“Current
law shortchanges the growing number of identity theft victims by imposing
undue limitations on those most affected by the crime. The Protect Victims
of Identity Theft Act of 2001 would give consumers enough time to go after
bad actors and a fair shot to protect their credit, clear their record,
and seek justice,” Schakowsky said.
The
legislation is also cosponsored by U.S. Representatives Lindsey Graham
(R-SC) and Mel Watt (D-NC). A companion bill has been introduced
in the Senate by Senators Patrick Leahy (D-VT) and Charles Grassley (R-IA). |
