TALLAHASSEE—The
Florida Legislature has passed HB37, the Security Freeze Bill, a
significant step in giving consumers more control over their personal
private financial information. The action was applauded by Florida PIRG
as a critical tool to prevent the growing crime of identity theft.
“This
simple tool acts as a padlock on consumers’ identity and is the best
way to prevent new fraud that results from identity theft,” said Brad
Ashwell, Consumer Advocate for Florida PIRG.
“The
security freeze is an opportunity for Floridians to take a proactive
step to prevent identity theft. Only the security freeze allows
individual consumers to take control of their own financial DNA,”
continued Ashwell.
If Governor Bush signs the bill into law, Florida will be one of only 16 states that extend this right to all consumers.
A
security freeze takes advantage of a simple fact: a new creditor won’t
give you credit without checking your credit report. If an identity
thief can’t give creditors access to your credit report, creditors
won’t let him make purchases in your name.
The
passage of such a law couldn’t come at a more important time for
Floridians. Recently released studies show that identity theft and the
fraud that results is growing rapidly. The Federal Trade Commission
reported over 17,000 people in Florida were victims of identity theft
in 2005.
The
reason for the increase in identity theft is in large part due to the
negligent privacy practices of credit bureaus, data brokers and
companies that allow this information into too many people's hands. In
2005 at least 53 million consumers have been placed at risk of identity
theft due to privacy breaches – allowing identity thieves access to our
financial information.
“The
reality is – information has become big business and consumers do not
have enough control over their private financial information.
Representative Adams and Senator Peaden have successfully sponsored
what will surely be one of the best pro-consumer protection bills of
the year,” said Ashwell.
