I know nothing about the California identity Theft Act (all I can find on it is that companies have to disclose any breach of security on information they have in their possession).
But the Patriot Act does not require copies of drivers licenses. If you look at page 6 of the Patriot Act it states:
The final rules implementing section 326 permit financial institutions to verify customer identity through both documentary and non-documentary means. In proposed rules issued in July of 2002, Treasury and the federal functional regulators included a new requirement that when a financial institution relies on a document - such as an identification card - the financial institution must make and maintain a photocopy of that document. Virtually all of the substantial number of comments relating to this provision were critical of the requirement. In light of these comments and the terms of section 326 of the Act, Treasury and the federal functional regulators eliminated the photocopy requirement in the final rule, instead requiring financial institutions to make and maintain a record of the description of any document upon which the financial institution relies to verify customer identity. The description must include the type of document, any identification number contained in the document, the place of issuance, and, if any, the date of issuance and expiration date.
So, when we fill out a form giving the drivers license number, date of issuance and expiration date we have helped the financial institution (the lender) comply with the Patriot Act.
The arguments against requiring a photocopy of the identification were:
1) the difficulty and burden of storing and retrieving copies of documents.
2) the fact that many kinds of identification documents, particularly some new drivers licenses have security features that prevent them from being copies legibly.
3) The difficulty of safeguarding copies, which could facilitate identity theft.
4) The fact that this requirement would substantially deviate from current banking practice and would violate certain state laws.
5) the difficulty for banks offering credit card accounts through retailers, which require the customer to provide identifying documents at the point of sale, in complying with such a requirement, especially given the reduced risks of money-laundering and the financing of terrorism through retail store credit cards.
6) The potential for claims of unlawful discrimination, especially since the banking regulators have discouraged the practice of retaining photocopies when extending credit. |
