Identity theft victims will be able to seek compensation for the time and effort it takes to clean up damaged credit history under legislation approved Wednesday (July 15th) by the House Judiciary Committee.

The bipartisan package of identity theft protection bills also updates Michigan law by better defining what constitutes identity theft and increasing penalties.  House Bill 4737, sponsored by state Rep. Matt Lori, makes victims of identity theft eligible for restitution from the Michigan Crime Victim Compensation Fund.  This is the first bill sponsored by Lori to be approved in committee.  The freshman lawmaker was pleased by committee approval of his bill:  Lori audio clip

In reporting on his legislation, the Constantine Republican said, “Because of the amount of business conducted online, identity theft is becoming an increasingly common crime and harder to prevent.  This legislation will give prosecutors the tools they need to go after these criminals and provide residents greater protection against identity theft.”

Lori noted that victims of identity theft must often spend years trying to fully restore their credit history and clear their name:  Lori audio clip

Lori said, “Victims of identity theft must often spend years cleaning up the mess – a frustrating, expensive and time-consuming hassle.  These bills give victims the opportunity to seek restitution for their effort.”

In addition to increasing penalties and helping victims recover, the legislation also reduces the risk of identity theft by establishing procedures for companies to properly destroy personal data.

The bills now head to the full House for consideration.

Source:  News release from state Rep. Matt Lori