New law aims to resolve ID theft among foster children

SALT LAKE CITY —  Jode Littlepage has spent years digging out of the mess foster parents in California had made of her credit.

They used her Social Security number to apply for credit cards and open bank accounts. When she left the foster care system, she was burdened with thousands of dollars of debt and serious damage to her credit history.

"Going into college, it was very difficult to apply for housing, even get a bank account because I had all of these negative things on my credit," said Littlepage, who mentors Utah youths in foster care through a program in the Department of Workforce Services.

Given her personal experiences and numerous instances she has counseled Utah youths who have encountered financial manipulation on the part of birth and foster families, Littlepage welcomes a new federal law that requires states to run credit checks on older foster children to help resolve cases of identity theft.

President Barack Obama signed the Foster Youth Financial Security Act into law on Sept. 30.

The new law ensures that foster children 16 and older receive free credit checks before leaving state foster care systems and that they are given assistance in clearing any inaccuracies that come to light.

As many as 30 percent of foster children might be victims of identity theft, based on reviews of the credit reports of foster children, The Associated Press reports. Most do not recognize that their identities have been stolen until they grow up and apply for credit.

Rep. Jim Langevin, D-R.I., co-sponsor of the legislation, said foster children "are already behind the eight ball," he said.

"They're already dealing with psychological and emotional problems because of abuse and neglect. It's outrageous that they would be further victimized by identity theft and find out about it just when they're trying to establish themselves with a car loan, apartment or job."

In general, children are more at risk of identity theft than adults, researchers at Carnegie Mellon University have found. Their review of records of 42,000 children found more than 10 percent showed signs of identity theft. Meanwhile, the federal government estimates that 4 percent of adults are victims of identity theft.

The thieves are often birth families, who may view a child's Social Security number as a means to put food on the table, pay rent or feed an addiction.

Littlepage, who was abandoned as an infant and spent about 16 years in foster care before entering college early, said it took six years to dig out of the mess created by the adults the state of California had trusted to care for her.