A new law in effect in New Jersey makes it illegal for creditors to deny credit to people solely because they were victims of identity theft. It also prohibits the reduction of a person’s credit limit.
The new law, previously S1643, provides for violators to face penalties of $5,000 for every proven incident of credit denial to a victim of identity theft.
“The scourge of identity theft shouldn’t be allowed to inflict further damage to victims by subjecting them to bad credit ratings,” Sen. Nia Gill, D-Essex, said in a written statement.
To help prevent identity theft, authorities warn consumers should look out for their own interests by reading their credit card statements, reviewing their credit report once a year and destroying unwanted credit card offers.
If you think you’ve been a victim of identity theft, you are encouraged to file a police report and a complaint with the state attorney general’s office.
To view other legislative activities of interest for New Jersey in 2007, click here.