Sunday, 23 November 2003
"No one gets all that they want, but we believe this is a good balance."
Sen. Paul Sarbanes
D-Md.
THE ASSOCIATED PRESS WASHINGTON - House and Senate negotiators have agreed
on legislation to give consumers new protections against identity theft, including
free credit reports annually and a national fraud alert system to minimize damage
once a theft has occurred.
The House passed the bill Friday night, and the Senate was expected to act
on it before Congress leaves for the year.
"No one gets all that they want, but we believe this is a good balance,"
said Sen. Paul Sarbanes, D-Md.
In addition, the legislation would reauthorize the Fair Credit Reporting Act,
which set a national credit reporting standard to make it easier for people
to get credit cards, loans and mortgages.
Reauthorizing the law, which expires at year's end, is a congressional priority.
Both parties agree the current national credit reporting system helps the economy
by offering consumers quick credit.
"This is historic legislation that will maintain the credit system in
this country that we know and rely on," said House Financial Services Chairman
Michael Oxley, R-Ohio.
But critics say the law prevents states from setting separate, tougher rules
on how businesses use, share and report data on consumers.
The California Legislature adopted a groundbreaking financial privacy law earlier
this year, but the new national standards adopted by Congress gutted many of
its most stringent provisions, including one that would have allowed victims
of identity theft to freeze access to their credit reports.
"The pre-emption of rights of the states to go forward is not a small
thing," said Rep. Bernie Sanders, I-Vt., who voted against the compromise.
Rep. Maxine Waters, D-Calif., also opposed it.
"We in California shouldn't be penalized for being a little ahead of the
curve on identity theft," said an aide to state Sen. Jackie Speier, a strong
proponent of California's bill.
Republicans and Democrats defended the move. "The trade-off is, most of
the people in the rest of the country will have much more in the way of consumer
protection than they did before," said Rep. Barney Frank, D-Mass.