Vermont Attorney Lawyer

New York, legislators have a law on consumer protection against identity theft, but insurers are recommending Dir George Pataki to veto the measure, because their credit requirement does not freeze l ‘insurer.

The legislation promises consumers a way to prevent identity theft and protect themselves against online piracy, but also increase penalties for those who identity theft to celebrate. The package is supplemented by laws that allow consumers to a freeze of security in credit has meant a move to prevent identity thieves cause more damage to the victims of the borrower.

Senator Charles Fuschillo, chairman of Consumer Protection, under the auspices of the destination, it would allow the consumer to a freeze of security in their credit, blocking of access to all reports consumer credit and prevent identity thieves from receiving new loans and credits on behalf of a victim. Consumers, a freeze of the Security would be a unique personal identification number (PIN) or password, a report agency credit whenever consumers, so that access to their credit. Proponents say that should be a thief truncated the situation to credits, loans and leasing, on behalf of consumers.

“This security model acts as a barricade freeze against those who would be fraud,” Senator Steve Saland (RC, Poughkeepsie), co-sponsor of the legislation, said. “Identity thieves have already attacked when thousands of consumers in New York, theft of personal information, leaves consumers severely threatened. This law allows consumers to avoid victimization by the” empowerment “to their security freezes on their consumer reports. ”

But New York is the only measure of credit freeze legislation in the Member States this year, the insurer is not free. Nine other states have credit freeze legislation in 2006 (Colorado, Florida, Illinois, Kentucky, Wisconsin, South Dakota, Utah, Kansas, and Vermont), and all insurers may also continue to have access to information credit and other Underwriting used for legitimate purposes, after the Property Casualty Insurers Association of America (PCI), which gave rise to freeze credit Dir Pataki veto.

PCI, also indicates insurers in the gel is no benefit for consumers, while costs incerasing for industry.

“During PCI supports efforts to prevent identity theft, the application of legislation should freeze credit targeted on areas where prevalence of identity theft,” said Kristina Baldwin, regional director and adviser to the PCI. “Security in these provisions have no legislation or practice, consumers benefit under the insurance.

According to Baldwin, it was “highly improbable” that the information was illegally acquired credit for the purchase of insurance. She cites a study Federal Trade Commission in January found that 99.6 percent of identity theft complaints focused on areas other than insurance.

“Consumers receive little or no benefits of a freeze on security is insurer. Insurer and the consumer experience has increased expenses, costs and inconvenience caused in part This legislation credit freeze. It is important to bear in mind that additional charges Insurance Company and the costs are ultimately to the detriment of all insured by higher premiums. In short, charges related to the credit application to freeze the insurers are not limited by very beneficial for consumers would be covered by the provisions to freeze the implementation of the credit for insurers, “Baldwin said.