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Two new laws enacted by the Indiana General Assembly to protect consumers will take effect on July 1. The first, Public Law 137, is the state’s latest weapon in the war against identity theft. Authored by State Rep. Linda Lawson, D-Hammond, the legislation creates a unit within the Attorney General’s Office to investigate and prosecute ID theft and to assist victims. “As Hoosiers increase their reliance on electronic forms of payment, the risk of identity theft will continue to grow,” Lawson said in a statement released on Wednesday by the media office of the Democratic Caucus. “By giving the Attorney General’s Office additional powers to stop identity theft, we can greatly reduce the instances of these crimes and save innumerable Hoosiers from financial ruin.” Other provisions of the law: *To stop sloppy business practices which increase the risk of ID theft, the law requires database operators to report security breaches to the Attorney General and forces businesses which handle personal information to implement reasonable security procedures. *The law requires businesses to make reasonable efforts to verify the identity of an applicant before extending a line of credit and bars businesses from denying credit to an applicant because he is a past victim of identity theft. “Identity theft was the top consumer complaint made to the Federal Trade Commission in 2008,” the statement said. “Studies show that there were approximately 9.9 million ID theft victims in the U.S. that year. Of that number, 328 complaints were made directly to the Indiana Attorney General’s Office.” Mortgage Lenders Public Law 52, on the other hand, was enacted “to curb the practices of unscrupulous mortgage lenders whose actions contributed to the wave of foreclosures currently plaguing Indiana,” the statement said. Authored by State Rep. Gail Riecken, D-Evansville, the legislation institutes a set of reforms designed to reinforce consumer confidence in the home-buying process. “In order to reinvigorate Indiana’s housing market, we need to reaffirm Hoosier’s faith in the mortgage lending industry,” Riecken said. “Indiana has one of the highest rates of homeownership in the country. This law will help ensure that the American Dream continues here in the nation’s heartland.” Provisions of the law: *The Homeowner Protection Unit (HPU) of the Indiana Attorney General ’s Office will play a much larger role in the mortgage lending industry. Creditors must give all prospective homeowners an HPU-approved notice that they have the right to inspect closing documents 24 hours in advance of a closing date.*Creditors will be required to notify borrowers that they can report suspected violations of mortgage law to the HPU and request an investigation. A report will be submitted to the General Assembly regarding the number of complaints received by the HPU, which will include a breakdown of the sources of those complaints and what enforcement actions were taken against offenders. *Payment fees which deter adjustable rate mortgage holders from re-financing into a lower mortgage rate will be prohibited. *No person will be allowed to corrupt or improperly influence the real estate appraisal process. New penalties will be created for wielding undue influence on real estate appraisals. *Practicing real estate without a license will be prohibited. *Foreclosure consultants will be required to keep all records for three years after a foreclosure takes place.
Posted 6/19/2009 |
