Governor Signs Encore-Supported Legislation to Help Victims of Identity Theft and Fraud
September 19 2016 - 12:26PM
Encore Capital Group, Inc. (NASDAQ:ECPG), a San Diego-based
international specialty finance company, recently announced that
California Governor Edmund G. Brown, Jr. signed into law Friday
Encore-supported legislation to help victims of identity theft and
fraud.
Prior to reaching the Governor’s desk, California Assembly Bill
1723 passed both the Assembly and Senate Floors with unanimous
bipartisan support. The bill has received broad-based support from
Attorney General Kamala Harris and consumer advocates.
Encore partnered with State Assemblyman Bill Dodd (D-Napa) on
this consumer-focused legislation to provide prompt relief for
victims of identity theft or fraud and to raise debt collection
industry standards. In two previously held hearings this session,
Encore testified in support of the legislation. Assembly Bill
1723 also boasts a bipartisan list of coauthors including San Diego
Assemblymembers Rocky Chavez (R-Oceanside), Brian Maienschien
(R-San Diego) and Marie Waldron (R-Escondido).
Encore’s efforts to raise industry standards and
consumer-centric approach is consistent with Encore’s Consumer Bill
of Rights, the industry’s first and only declaration detailing the
commitment to conduct business ethically and in ways that support
our consumers' financial recovery.
According to the Federal Trade Commission’s (FTC) “Consumer
Sentinel Network Data Book for January – December 2015,” California
had more identity theft complaints—55,305—than any other state, and
nationwide, identity theft has increased more than five-fold during
the past 15 years. [1]
Under the Encore-supported legislation, the timeframe of
recovery for identity theft victims will be reduced to a matter of
weeks. “We hope this legislation will improve the burdensome
process for the victims of identity theft as they work to resolve
their accounts by creating greater transparency and better
guidance,” said Sheryl Wright, Encore Capital Group’s Senior Vice
President of Corporate & Government Affairs.
“We stand beside our consumer-centric principles and practices
and are committed to consumer safety and respect," continued Ms.
Wright. “This legislation seeks to expedite the process that will
assist victims of identity theft to resolve their investigation and
continue to move forward with their lives.”
The bill’s provisions go beyond existing state and federal law
to provide greater consumer protections.
Specifically, the bill’s requirements would provide the
following protections:
- Debt collectors must initiate an investigation within 10
business days of receiving fraud/identity theft documentation from
a consumer. Current federal law provides for a 30-day investigation
timeframe.
- Consumers must be notified of how the fraud/identity theft
dispute was resolved, regardless of the outcome. Current state law
only requires a notification when the dispute is found to be
invalid.
- Credit bureaus must be notified within 10 business days that
the account is disputed or that the account’s trade line needs
deletion after a fraud/identity theft investigation. Currently,
this notification process takes some debt collection companies up
to 60 days.
- Creditors must be notified within 10 business days that
collection activities have been terminated due to fraud/identity
theft. Current state law requires a notification back to creditors,
but does not stipulate a timeline.
“Millions of Californians have fallen victim to identity theft,
myself included. It’s an issue that transcends partisan politics,
and that’s why my colleagues in the legislature voiced their
unanimous support for this bill,” said Assemblymember Dodd.
“Victims of identity theft deserve a transparent and speedy
resolution process."
“Encore is proud to support this essential legislation in
partnership with Assemblyman Dodd. It’s important to our company to
stand behind meaningful policies such as this one that provide
better solutions for our consumers, therefore, creating a better
life,” said Ms. Wright.
In terms of consumer-centric legislation, Encore has previously
worked with U.S. Rep. Scott Peters (D-Calif.) on a bill before
Congress that would exempt consumers nationwide from tax
liabilities on up to $2,500 of forgiven consumer debt.
[1]
https://www.ftc.gov/system/files/documents/reports/consumer-sentinel-network-data-book-january-december-2015/160229csn-2015databook.pdf
About Encore
Capital Group, Inc.
Encore Capital Group is an international specialty finance
company that provides debt recovery solutions for consumers across
a broad range of assets. Through its subsidiaries around the globe,
Encore purchases portfolios of consumer receivables from major
banks, credit unions and utility providers.
Encore partners with individuals as they repay their debt
obligations, helping them on the road to financial recovery and
ultimately improving their economic well-being. Encore is the first
and only company of its kind to operate with a Consumer Bill
of Rights that provides industry-leading commitments to
consumers. Headquartered in San Diego, Encore is a publicly
traded NASDAQ Global Select company (ticker symbol: ECPG) and a
component stock of the Russell 2000, the S&P Small Cap 600 and
the Wilshire 4500. More information about the company can be found
at http://www.encorecapital.com. More information about the
Company's Cabot Credit Management subsidiary can be found
at http://www.cabotcm.com. Information found on the company’s
or Cabot’s website is not incorporated by reference.
Contact:
Kevin Saidler
Encore Capital Group, Inc.
619-608-9072
kevin.saidler@encorecapital.com
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