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Businesses oppose ID theft safeguard

A bill to let consumers curb access to their credit reports would hinder instant credit promotions, legislators are told.

By STEVE BOUSQUET
Published November 10, 2005

TALLAHASSEE - A proposal to protect Florida consumers from the growing problem of identity theft ran into a buzz saw of opposition Wednesday from businesses opposed to more state regulation.

Legislation by Rep. Sandy Adams, R-Orlando, would let individual consumers "freeze" their credit reports to reduce the chance that personal financial information could be stolen and used by criminals. The freeze would block the release of personal financial information to a third party, such as a car dealer or department store, until a consumer paid $5 to have the freeze lifted.

Criminals commit identity theft by stealing a consumer's credit card, Social Security or checking account routing numbers, then using that information to open instant charge accounts at stores.

Adams' proposal is modeled after laws in California and New Jersey, two of the 10 states that currently allow people to freeze their credit histories. But it includes a provision that would allow consumers to sue "anyone" who fails to comply with the provisions of the bill, which helped coalesce opposition.

"The question is, do we just sit back and not allow consumers an extra tool to protect themselves, or do we move forward?" Adams asked the House Agriculture Committee. "I would respectfully ask that we move forward."

But that didn't happen.

Lobbyists for retail stores, credit reporting agencies and banks said the bill could block retailers from offering instant credit or lead to a flood of lawsuits. Bankers stopped short of outright opposition but said federally chartered banks don't want to be forced to comply with different laws in every state.

Jeff Johnson of AARP Florida urged passage of Adams' bill (House Bill 37). Johnson said many AARP members, consumers over age 50, have excellent credit, making them "attractive targets" to identity thieves.

But the AARP's support was no match for the bulwark of business resistance. It didn't take long for Republicans and Democrats to line up in opposition.

John Rogers of the Florida Retail Federation told lawmakers the consumer-friendly practice of offering "instant credit" could be endangered by Adams' bill.

Not one lawmaker on the committee spoke in favor of Adams' bill, and most of their questions dealt with the effects on business owners, not consumers.

Only after pleas from five lawmakers did Adams agree to delay a vote until the committee's next meeting in early December, giving her time to work out a compromise with lobbyists.

After leaving the meeting, Adams voiced hope that her bill could still pass, along with a Senate version sponsored by Sen. Durell Peaden, R-Crestview.

"I'm a little disheartened that this was presented by some as a business-unfriendly bill. It's a consumer tool," Adams said.

Steve Bousquet can be reached at bousquet@sptimes.com or 850 224-7263.

[Last modified November 10, 2005, 01:20:16]