|
October 10, 2007 - There are currently twenty eight states that allow their residents to freeze access to their credit file for any reason. Another eleven states have laws that allow the victims of identity theft to implement a credit freeze. But by the end of this year, it looks like consumers in all 50 states will have the ability to implement a credit freeze even if no new laws are passed.
Last week, Trans Union implemented a new policy that allows any consumer to place a freeze on their credit file, even if they live in a state without a credit freeze law. On November 1st, Experian will follow suite. And although Equifax has not announced a date yet, the company has said that it intends to allow consumers to freeze their credit file before the end of November. The announcements are something of a surprise. All three companies have been vocal opponents of credit freeze laws for several years. Each have poured vast lobbying efforts into defeating proposed new credit freeze laws and showered political candidates that are friendlier to their point of view with economic resources. While ACCESS is happy about the announcements, we are also somewhat skeptical about the companies' motives. The move could be an effort to head off additional legislation at the state or federal level which would further restrict their activities. Or it could be an effort to protect revenue. All three companies have announced that the charge for implementing a credit freeze will be $10. Furthermore, it will cost consumers $10 per company to lift a credit freeze each time they want to apply for new credit. These charges will not impact consumers who live in states which mandate lower fees. For instance, Indiana allows consumers to freeze their credit, or lift an existing credit freeze free of charge. This will not change. Any consumer interested in implementing a credit freeze will not find a lot of information on any of the companies' websites. Frankly, all three have buried most information about credit freezes deep within their sites. It should also be noted that the procedures and addresses used for credit freezes can vary from state to state. They also vary from bureau to bureau. Anyone who is interested in initiating a credit freeze can contact the CRAs for the proper procedures for their state by calling the following phone numbers: Credit freezes are the best way to prevent identity theft. Once a freeze is issued, the only way that your credit file can be accessed to provide you with new credit is if you give permission. The process requires you to contact each of the credit bureaus and lift the freeze; either for a specific amount of time or to grant access to a specific merchant. In most cases, once you freeze your credit file you will no longer have access to instant credit. By 2008, residents of Utah will be able to lift a credit freeze on 15 minutes notice. This will effectively give them access to instant credit. Utah however is the exception to the rule. None of the announcements from any of the CRAs indicated that they plan to provide this kind of flexibility to consumers in states that don't require it. by Jim Malmberg Note: When posting a comment, please sign-in first if you want a response. If you are not registered, click here. Registration is easy and free. Only registered users can write comments.
Please login or register. |
Identity Theft 
