Foster Children More Susceptible to Identity Theft and Damaged Credit

Every once in awhile, I come across a story that makes me truly angry. I read it and get a fire in my belly, wanting to tell everyone I know so that this injustice will stop. Earlier this year, I covered blatant foreclosure fraud by the banks and JP Morgan Chase overcharging and foreclosing on military families on this blog. As bad as those both were, I was still unprepared for a new story uncovered by First Star, a non-profit organization that advocates for abused children.

First Star recently released a report titled “The Fleecing of Foster Children: How We Confiscate Their Assets and Undermine Their Financial Security.” The report details how the current foster care system works against these kids financially by taking away survivor benefits and disability funds without their knowledge as well as discouraging them from earning and saving money. If they save up more than $2,000, then they are ineligible for most of their aid programs.

As if all of this weren’t bad enough, there is a rise in foster child identity theft. Foster children are often shuffled from house to house and go through many foster parents, and sometimes the foster care personnel or foster parents, the people who are supposed to protect and raise these children, are using their personal information to obtain credit. These children turn 18, and they are kicked out into the world with destroyed credit, very little savings, and no support system in place to help them. They have trouble getting housing, a car, or even a job, and if they get a job, they usually don’t know much about money management.

Current state and federal laws are inadequate for dealing with these abuses and shortcomings in the foster care system. First Star along with the Children’s Advocacy Institute and other children’s advocacy groups are pushing for two new laws titled the Foster Children Self-Support Act and the Foster Youth Financial Security Act. These laws would help foster children prepare for self-sufficiency before they turn 18. Included in the second law’s provisions is a requirement that foster care programs check their children’s credit reports for inaccuracies and take care of any necessary credit repair services.

Anyone paying close attention to national politics can tell you that our country is severely divided right now, and it seems like Republicans and Democrats can’t agree on anything. No matter what side of the aisle you are on, I think that everyone can agree that our country’s foster care system is broken, and it is hurting the future financial health of these foster children. After reading through the Foster Children Self-Support Act and the Foster Youth Financial Security Act, I strongly believe that these laws will help protect foster children from identity theft, allow them to earn and save money for the future, and give them a much better chance after leaving the foster care program.

Identity theft can happen to anyone at any age. If you think you have been a victim of identity theft, go to http://www.mycreditspecialist.com to sign up for a free credit evaluation, and check out http://blog.mycreditspecialist.com to learn how to improve your credit health.

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