ID theft occurs when someone uses another s name, Social Security number, mother s maiden name, or any personally identifiable information to purchase goods or services usually with credit cards. The bill will give consumers the power to avoid becoming victims of identity theft by allowing them to keep track of their own credit information in cooperation with creditors and credit bureaus. This legislation would not only empower consumers with protections, Hooley said, it also would demand creditors and credit bureaus do their part to combat fraud. While credit issuers have been willing to refund fraudulent charges, victims are still faced with problems of ruined or destroyed credit, the time commitments of redeeming their name with multiple credit bureaus and credit issuers, and the fear and anxiety associated with knowing that someone is using all of their personal information to charge any manner of goods. As a result of identity theft, victims have been turned down for jobs, mortgages, and other important extensions of credit.
Identity theft is a growing problem.
The Privacy Rights Clearinghouse estimates that there will be 400,000 to 500,000 new cases of ID fraud this year and the Federal Trade Commission s 1-800 number for ID theft receives an average of 400 calls a week from people like Hooley s constituent Paul LaLiberte, from Clackamas, Oregon. The first time Paul LaLiberte faced identity theft was about 20 years ago when someone stole his wallet. Worse, the thief used his identity when he was arrested for a felony, which then went on Paul's record. Years later, when he applied for a job, he was nearly turned down because of this false criminal record. The main problem he has faced has been trying to clear up his credit reports.