Washington, D.C. – U.S. Senator Mike Enzi, R-Wyo., and Senate colleagues passed legislation today that would give Wyomingites the tools to better manage their credit and protect them from becoming victims of identity theft.

The Senate passed, by a vote of 95-2, the National Consumer Credit Reporting System Improvement Act of 2003, S. 1753. The bill would amend the Fair Credit Reporting Act of 1970 to help prevent identity theft, improve financial education and literacy, limit the sharing of certain consumer information among businesses, and improve the accuracy of consumer reports resulting in greater access to and use of those reports for consumers.

"The more people understand their credit and the credit system, the better they will manage their finances. This bill would help improve the accuracy of credit reports and provide better financial information to individuals and families so they can make sound financial decisions and prevent crimes like identity theft from happening to them," said Enzi.

The House passed its credit management and protection bill, H.R. 2622, on Sept. 10 by a vote of 392-30. Enzi has been chosen by leadership to be part of a Senate-House conference committee selected to work out the differences between the two versions of the legislation.

Enzi, a member of the Senate Banking Committee, worked particularly hard on two provisions in the bill regarding financial literacy and identity theft. The provisions were part of legislation introduced by Enzi earlier this year.

IDENTITY THEFT

Enzi, along with Sen. Maria Cantwell, D-Wash., successfully offered an amendment designed to provide information to consumers and safeguards to businesses in order to facilitate quick and cost effective recovery from identity theft.

The amendment would allow consumers, at no charge, to request from businesses any records relating to a fraudulent transaction that resulted from identity theft. It would also provide businesses with clear guidelines on the kinds of identity verification necessary to prove that the individual asking for the information is truly a victim and not another identity thief. The provision would not require businesses to keep new records or seek information that is not under their control.

Enzi said the amendment would allow victims to work with businesses to obtain information related to cases of identity theft so they can start reversing the lasting and damaging effects of the crime.

"Victims of this crime are faced with potential financial ruin when their identities, bank accounts, and credit histories are taken away from them by unscrupulous criminals. Unfortunately, restoring a person's identity can be an uphill battle. This provision would make it easier for victims of this crime to recover both economically and emotionally."

According to a recently released Federal Trade Commission study, more than 27.3 million consumers have been a victim of identity theft in the past five years.

FINANCIAL LITERACY

The bill would also provide a one-stop-shop for consumers to reach various federal financial literacy programs and create a national strategy to bring consistency and focus to the federal government's overall financial literacy goals.

The legislation would bring appropriate federal agencies together to review and evaluate the current financial literacy programs offered by the federal government. A Financial Literacy and Education Commission would make recommendations on how to coordinate, improve and reduce the redundancy of existing programs. The commission would also be charged with setting forth a national strategy to bring consistency and focus to the federal government's overall financial literacy goals, and would recommend changes to the President and Congress on how federal agencies could improve their financial literacy efforts.

Enzi said the legislation would make it easier for Wyomingites to keep track of their credit. He also praised efforts of the University of Wyoming, Wyoming realtors, bankers, Fannie Mae and others who have already helped him conduct financial education classes in the state.

"Having a good or bad credit report can make or break a family. A bad credit report could mean the denial of a car loan and a car, and for people in Wyoming that is not something that is easy to go without," said Enzi. "The success of financial literacy programs in Wyoming, like the compressed video classes on how to buy a home, have demonstrated to me the power that we can give to individuals and families over their finances if they have the tools."