OREGON COMPUTER STOLEN FROM TAX FIRMID theft bill comes to another dead-endID theft bill comes to another dead-end
A Senate measure allowing consumers to "freeze" their credit files against predators flops -- again -- amid heavy lobbying
Thursday, July 14, 2005
GRANT SCHULTE
SALEM -- The burglars who kicked in Lyle Remington's door one sunny October afternoon, snatching a Belmont office computer from his Portland tax firm, stole far more than they may have realized.

Stored on the computer's hard drive, in unencrypted files, was some of his customers' most precious personal information. Social security numbers in some cases. Credit card numbers in others. In a heist that lasted minutes at most, the burglars exposed nearly 300 Oregonians to possible identity theft.

As difficult as it was explaining the situation to his clients -- Remington choked up in front of one group of customers -- the 58-year-old accountant said he was more surprised to learn how difficult protecting potentially compromised personal information can be.

In 2004, Oregon ranked ninth among states in identity theft cases per capita. But Senate Bill 1057 -- allowing consumers to "freeze" their credit files against predators -- has been blocked. Business lobbyists contend it could clog the profitable free-flow of credit information and force larger corporations to meet different state standards.

Oregon, as a result, has struggled to enact a law that would protect credit files, consumer advocates say.

An attempt to vote on the bill flopped an eighth time this week in the Senate, when it was referred -- again -- to the Senate Rules Committee. The bill's sponsor, smiling but clearly annoyed, threw up his hands as he walked past a reporter.

"Why don't we give consumers one tool to try to prevent identity theft?" Sen. Floyd Prozanski, D-Eugene, said before the vote.

Prozanski expected objections from the credit reporting industry, but others fighting the measure, such as auto dealers, came as a surprise.

"To say that there was some opposition is an understatement," said Senate Minority Leader Ted Ferrioli, R-John Day. "It was pretty much opposed universally" by banks, credit unions and other financial institutions.

Ferrioli said his caucus generally felt the bill overreached, dumping a considerable burden on companies that collect, sell and use such information.
In its current form -- watered down from a provision requiring customer notification about security breaches -- SB1057 still appears unlikely to muster enough Senate votes. And Prozanski hardly expects a warm welcome in the Republican-led House.

A "freeze" is the credit-file equivalent of a PIN number, preventing the release of an Oregonian's credit information to anyone without consent. Customers could still check their own reports, approve access for others or lift the freeze.

The safeguard would help "pretty much anyone who has a credit file" stop illicit purchases, said Steve Corson, communications director for the state's Department of Consumer and Business Services.