California Credit Law Blog

The Federal Trade Commission has a site for ID theft victims that covers every type of ID theft. The site has advice for consumers on how they may protect themselves against ID theft and what to do when their ID is stolen.

The FTC has also made available a guidebook for assisting identity theft victims. For example, the guide details how consumers may get assistance in resolving ID theft, sample letters to send to credit reporting agencies and creditors, and the best way to dispute claims by debt collectors,

This from AOL News reports

According to an Army spokesman, thieves have gone online using dead soldiers' identities to scam women into sending them money. "They look for patriotic women, and they play on their heartstrings," Christopher Grey, a spokesman for the United States Army Criminal Investigation Command, told AOL News.

The use photos and details culled from Facebook and news accounts to pose as living soldiers. They target women who are sympathetic to soldiers' in war zones.

Victim Joan Romano of Lynbrook, N.Y. said one image in particular "really got my heart going because I really do cherish our soldiers." She sent the crook her savings.

The Army has received complaints from victims reporting losses from a few thousand dollars to $28,000 in one case,

As we all know, businesses collect identifying information on millions of consumers, which is stored in computerized databases. From time to time, hackers get into the system and steal the personal information. Or an employee loses a laptop containing such information. The thieves then use the personal information to open credit card accounts in consumers' names. Or order merchandise using the consumers' information. The result is identity theft on a large scale.

In 2002, California enacted the first law requiring any business that experiences a breach of its security system such that names, addresses, credit card number or social security numbers is lost must inform affected consumers in the most expedient time possible. To comply with the law, businesses typically send letters to the persons whose data was lost; however, studies showed that the letters were often too vague to be of much value.

The Legislature has now amended the law to specify that the notice letters must contain the name and contact information of the business that lost the data, a list of the types of personal information that may have been lost, and a toll-free number for persons to call for more information. The letters must also disclose the date and description of the breach incident, and what the business is willing to do to assist the consumers. This information should help consumers know how to protect their own credit from fraudsters.

Businesses that have not complied with California and other states' laws have been the target of class actions seeking damages.

The Consumer Financial Protection Bureau will take over the regulatory authority over the credit reporting agency now held by the Federal Trade Commission. This is good news for consumers because the FTC's record regulating the credit bureaus is mostly too little and too late.

In an interview with the Huffington Post, Elizabeth Warren, the newly appointed director of the bureau, said the agency will rely on interaction with the public in order to accomplish its mission. She said the agency will exponentially expand the manpower it has to review the operations of banks and lenders by hearing from consumers and watchdog groups.

Given the chance, the bureau will surely hear from thousands of frustrated consumers unable to get the credit bureaus to eliminate errors in their credit reports.