May 1, 2007, Introduced by Rep. Gaffney and referred to the Committee on Banking and Financial Services.
A bill to amend 2004 PA 452, entitled
"Identity theft protection act,"
by amending section 11 (MCL 445.71).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) A person shall not do any of the following in the
conduct of trade or commerce:
(a) Deny credit or public utility service to or reduce the
credit limit of a consumer solely because the consumer was a victim
of identity theft, if the person had prior knowledge that the
consumer was a victim of identity theft. A consumer is presumed to
be a victim of identity theft for the purposes of this subdivision
if he or she provides both of the following to the person:
(i) A copy of a police report evidencing the claim of the
victim of identity theft.
(ii) Either a properly completed copy of a standardized
affidavit of identity theft developed and made available by the
federal trade commission pursuant to 15 USC 1681g or an affidavit
of fact that is acceptable to the person for that purpose.
(b) Solicit to extend credit to a consumer who does not have
an existing line of credit, or has not had or applied for a line of
credit within the preceding year, through the use of an unsolicited
check that includes personal identifying information other than the
recipient's name, address, and a partial, encoded, or truncated
personal identifying number. In addition to any other penalty or
remedy under this act or the Michigan consumer protection act, 1976
PA 331, MCL 445.901 to 445.922, a credit card issuer, financial
institution, or other lender that violates this subdivision, and
not the consumer, is liable for the amount of the instrument if the
instrument is used by an unauthorized user and for any fees
assessed to the consumer if the instrument is dishonored.
(c) Solicit to extend credit to a consumer who does not have a
current credit card, or has not had or applied for a credit card
within the preceding year, through the use of an unsolicited credit
card sent to the consumer. In addition to any other penalty or
remedy under this act or the Michigan consumer protection act, 1976
PA 331, MCL 445.901 to 445.922, a credit card issuer, financial
institution, or other lender that violates this subdivision, and
not the consumer, is liable for any charges if the credit card is
used by an unauthorized user and for any interest or finance
charges assessed to the consumer.
(d) Extend credit to a consumer without exercising reasonable
procedures to verify the identity of that consumer. Compliance with
regulations issued for depository institutions, and to be issued
for other financial institutions, by the United States department
of treasury under section 326 of the USA patriot act of 2001, 31
USC 5318, is considered compliance with this subdivision. This
subdivision does not apply to a purchase of a credit obligation in
an acquisition, merger, purchase of assets, or assumption of
liabilities or any change to or review of an existing credit
account.
(e) Subject to subsection (3), if the person is a person that
owns or licenses data that are included in a database, do either of
the following:
(i) Fail to implement and maintain reasonable security
procedures and practices, appropriate to the nature of the
information, to protect a consumer's personal identifying
information in the database from unauthorized access, destruction,
use, modification, or disclosure.
(ii) If the person disclosed a consumer's personal identifying
information in the database to a nonaffiliated third party pursuant
to a contract, fail to require in the contract that the third party
must implement and maintain reasonable security procedures and
practices, appropriate to the nature of the information, to protect
that personal identifying information from unauthorized access,
destruction, use, modification, or disclosure.
(2) A person who knowingly or intentionally violates
subsection (1) is guilty of a misdemeanor punishable by
imprisonment for not more than 30 days or a fine of not more than
$1,000.00, or both. This subsection does not affect the
availability of any civil remedy for a violation of this act, the
Michigan consumer protection act, 1976 PA 331, MCL 445.901 to
445.922, or any other state or federal law.
(3) Subsection (1)(e) does not apply to a person that is a
financial institution described in section 12(9) or a person
described in section 12(10).