Dodd’s Consumer Protection Bill Unanimously Passes the Assembly

SACRAMENTO – The Identity Theft Resolution Act, a bill authored by Assemblymember Bill Dodd (D-Napa) unanimously passed the Assembly Floor with bipartisan support. The Identity Theft Resolution Act will dramatically reduce the time it takes for victims of identity theft to clear their name, end harassing phone calls, and remove negative credit reporting. The bill has received broad based support from Attorney General Kamala Harris, consumer advocates, and even segments of the debt collection industry.

“Identity theft does not discriminate based on your political party and many of my colleagues in the legislature, myself included, have been victims of identity theft. This bill is a prime example of how members of the legislature can work together to pass common sense legislation that will positively impact millions of people in California,” said Assemblymember Bill Dodd. “Victims don’t just receive annoying collection calls; they can also face higher interest rates or even lose out on critical home or auto loans due to the fraudulent charges on their credit reports.”

Identity theft occurs every 2.5 seconds in the U.S. and impacts 1.5 million Californians every year, according the California Attorney General. Identity theft occurs when perpetrators illegally use a person’s confidential information to make fraudulent purchases or apply for consumer loans in the victim’s name. The Federal Trade Commission estimates it can take an average of 6 months and 200 hours of work to recover from identity theft. Under Dodd’s legislation, the timeframe for resolution can be reduced to a matter of weeks.

“Identity theft can have damaging effects long after the crime has taken place. Many people only find out the crime has occurred once it appears on their credit report,” said Sonoma County District Attorney Jill Ravitch. “Consumers can spend months trying to navigate through a confusing and overwhelming system to remove the negative reporting. Any legislation that provides a more expedient resolution for cases of identity theft is a positive step for consumer protection.”

“Identity theft is a very serious problem that affects millions of Californian’s each year. In Contra Costa County, our Consumer Protection Unit receives over five hundred complaints a year from residents who have become victims of consumer fraud and hundreds more from victims of identity theft,” said Contra Costa District Attorney Mark Peterson. “These victims deserve a faster resolution process. This legislation is a step towards helping ordinary citizens deal with the nightmare that results from being the victim of the crime of identity theft.”

While Dodd’s bill dramatically reduces the time frame for debt collection companies to review identity theft disputes, it also requires that consumers be notified of how their dispute was resolved. Further, the bill requires faster updates to the credit reporting agencies to delete negative credit reporting and ensures the fraudulent accounts are not sold or transferred to another collector. The bill now moves on the Senate where it will be heard later this year.

Assemblymember Bill Dodd represents the 4th Assembly District, which includes all or portions of Napa, Yolo, Sonoma, Solano, Lake, and Colusa Counties. .