(TRENTON) – The Assembly Consumer Affairs Committee released legislation sponsored by Assemblymen Anthony Chiappone, Peter J. Barnes Jr. and Jack Cryan which would require financial institutions to be more proactive in preventing instances of identity theft.

The bill (A-1080) would require financial institutions to promptly notify clients of any suspicious activity or potential problems regarding their credit card accounts. The bill also would require creditors to assist clients in rectifying identity theft situations, as well as provide reimbursement for any losses. Credit card companies could delay client notification, however, if requested by a law enforcement agency.

“Identity theft destroys lives,” said Chiappone (D-Hudson). “A person can be held liable for thousands of dollars and their credit history ruined at the hands of thieves.”

“As the number of identity theft cases rise, there must be something done to slow down this trend,” said Cryan (D-Union). “Victims are taking the blame for a problem that is clearly out of their control. Financial institutions should be the first line of defense.”

The legislation also would call for other safety measures, such as tightly restricting requests for additional cards and increasing credit-card holder notification of change-of-address requests.

“Identity theft is running rampant in this state as well as the country,” said Barnes (D-Middlesex). “It takes weeks -- even months in some cases -- for individuals to realize they’re being taken for a ride. This measure is practical in stopping identity theft before it’s too late.”

The committee released the measure 5-0. It now goes to the Assembly Financial Institutions Committee for further consideration. Chiappone is also the sponsor of another Identity Theft bills A-2553 which would restrict the use or display of Social Security numbers by businesses and academic institutions throughout New Jersey. A-2553 would prohibit businesses and institutions of higher learning from using or displaying Social Security numbers (SSNs) under specified circumstances. In particular, it would bar both businesses and academic institutions from:

• Assigning an identification number to an individual that is identical to or incorporates that individual's SSN.
• Displaying publicly or using the Social Security number of any individual — for instance, a customer or a student — or any four or more consecutive numbers contained in that SSN.

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