Legislatively Speaking
By Senator, Lena C. Taylor
Lena C. Taylor
Imagine turning 18 years-old; finally ready to take on your dreams as an independent young man or woman.
At this age, you feel like you have reached a starting point in life’s journey and are bursting with potential.
Now picture yourself as an 18 year-old aging out of foster care.
Life has already dealt you a set of circumstances that have interrupted your childhood, separated you from your biological parents and in some cases, your entire natural family.
You, alone, will now be responsible for your well being, housing, continued education, and economic future.
But you are ready for the opportunity to create your own future. Then, once again, life throws you a curve and you are faced with a new challenge: identity fraud.
WISN 12’s investigative reporter Colleen Henry reported on the story of two sisters, who were former foster children that discovered their identity had been stolen and personal credit ruined while in the state of Wisconsin’s care.
The sisters would learn that while they were still minors and being cared for by foster parents, they already had a house, a car, credit cards, and a bankruptcy in listed in their name.
In talking with a representative from the Wisconsin Department of Children and Families, I was told the following: “Children and youth in a court ordered out-of-home care (OHC) placement are particularly vulnerable to identity theft because their personal identifying information is frequently shared with multiple agencies and individuals, making it less protected and more readily accessible to identity thieves. Unfortunately, identity theft by parents, relatives and caregivers also occurs.
The misuse of the child’s identity may not be discovered until the youth exits the foster care system and applies for a cell phone, job, student loan or apartment.
Long-term implications for youth include debt that was not created by them, credit score problems, difficulty obtaining credit, loans and apartment rental, as well as the potential for civil judgments against the youth for delinquent accounts.”
Identity theft impacts an estimated 15 million United States residents each year, with financial losses totaling upwards of $50 billion annually.
Our country’s most vulnerable demographic, children, have become a popular target for identity thefts.
One in 40 families with children under 18 had at least one child whose personal information was compromised, according to a 2012 survey by the Identity Theft Assistance Center and the Javelin Strategy & Research group.
The survey revealed that identity thieves most often steal children’s Social Security numbers, since young children seldom have the credit histories acquired by adults, such as credit cards, bank accounts, licenses and financial statements.
Foster children are particularly at risk. So much so, that the White House’s Administration for Children and Families have created federal laws aimed at protecting kids from falling victim to identity thieves.
Under current Federal law state child welfare agencies— in order to become eligible for federal grants— ensure that youth in foster care who are 16 and older receive a free copy of any credit reports annually.
The law also requires that the agencies ensure that these youth get assistance in interpreting and resolving any inaccuracies in the reports.
Although it appears many states have no formalized process to address this situation, Wisconsin’s Department of Children and Families has begun to address the concerns raised by Colleen Henry and my office.
Going beyond the federal law, Wisconsin currently has agreements with two of the three credit reporting agencies and is working on the third.
We request credit reports twice a year, for all kids, not just those that are aged 16 and up. Remediation of fraudulent credit is a joint responsibility between Department of Children and Families and the county child welfare agencies.
However, for anyone that has ever been the victim of identity theft, you know that it can take years to clear your credit report of fraudulent accounts.
There is no obligation under the federal law to continue to work with aged out youth on credit remediation.
So, there are no laws that exist to protect these individuals beyond the age of 18.
That means a young man or woman, in the final days before becoming independent, could have their information stolen, their credit abused, and never get the help they need to recover.
Understanding that good credit is vital for a successful transition from foster care to adulthood, I am committed to addressing additional remedies for children who have been entrusted to our care and further harmed while on our watch.
I am working on legislation to protect our young men and women, who have been taken advantage of as a result of their circumstances that would allow them to receive continued assistance, in correcting their credit information, after they leave foster care and refer violators for prosecution on identity left laws.
It is unacceptable that these children would leave our care worse than when we received them.