The main problem trying to be fixed here is "identity theft". What that crime is, I think, is not clearly understood. This is when a criminal defrauds a bank or other company by getting credit using your identifying information and then defaults. The bank then misinforms the credit bureaus that you defaulted on your loan and this lie by the bank hurts you when you want to get any type of loan. This crime would be better called "bank slander" and the banks that do it should be fined heavily with some money going to the person slandered.
Banks should have to know who they are loaning money to and if they make a mistake, that needs to be solely their problem. Then banks will figure out ways to confirm your identity better and people won't get into the hell that is trying to get the "bank slander" removed from their credit report.
Banks should have to know who they are loaning money to and if they make a mistake, that needs to be solely their problem. Then banks will figure out ways to confirm your identity better and people won't get into the hell that is trying to get the "bank slander" removed from their credit report.