CBA Publications >> CBA Regulatory Compliance Bulletin >> Vol 2003 No.13
October 6, 2003

Vol 2003 No. 13 October 6, 2003

Summary of New California ID Theft Bill

Pursuant to a bill passed last year (see CBA Regulatory Compliance Bulletin 2002-17), codified at Civil Code Section 1785.20.3, a creditor using a credit report who discovers that a consumer's address on a credit application and credit report do not match must take reasonable steps to verify the address before extending credit. A new California law passed this year, AB 1610, extends this obligation to discrepancies in a consumer's first and last name and social security number. The law is intended to prevent extensions of credit obtained pursuant to identity theft.

As originally introduced, this measure would have required a user of a credit report to verify any inconsistent information in an application and a consumer report. CBA opposed the original bill and worked to limit its application to the specific items of information noted above. Note that, also attributable to CBA-supported amendments to last year's bill, the new verification requirements apply only in connection with an approval of credit.

You may be interested to know that CBA has produced a brochure, available to CBA members, to educate bank customers about identity theft. The brochure may also be used to satisfy a bank's existing obligation under Civil Code Section 1785.20.3, which this bill amends, to notify a customer of his or her rights to block information maintained by a credit reporting agency if that information resulted from identity theft. Information about the brochure may be obtained by calling Anissa Yates at 916-441-7377 ext. 208.

For further information about AB 1610, please contact Pat Zenzola at 916-441-7377 ext. 210.