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NEW CREDIT REPORT “SECURITY FREEZE” LAW TAKES EFFECT |
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Security Freeze Offers Important Protection Against Identity Theft! |
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Beware of Potential Inconveniences! |
A new state law effective on November 1st will permit individuals to “lock” up their credit files by putting a “freeze” on their credit reports. A security freeze blocks access to a credit report and can help prevent identity theft. For example, with a security freeze activated, a bank or credit card company would not be able to check your credit file, and therefore, would probably deny the application, preventing the imposter from stealing your identity and opening a line of credit in your name.
However, the same holds true if you wanted to apply for credit in your own name while your freeze is on. This means that you have to plan ahead for a wide variety of situations, such as credit and employment applications, as you will need to contact the credit reporting agencies to “thaw” the freeze beforehand and authorize the release of your personal information. Otherwise, your application will likely be denied. A security freeze may delay, interfere with or prohibit the timely approval of any application you have for a new loan, credit, mortgage, insurance, rental housing, employment, investment, license, cellular phone, utility hook-up, internet credit card transaction, or other services, including an extension of credit at the point of sale.
The following is a
brief summary of
How
do I place a freeze?
You need to send a letter by certified or overnight mail to each of the credit reporting agencies (Equifax, TransUnion and Experian), including personal identifying information such as complete name, address, date of birth and social security number .
How
soon will the freeze take effect?
Within five business days of receipt of your letter by the credit reporting agencies [note: within four days of receipt as of January 1, 2008, and within three days of receipt as of January 1, 2009].
How
long
does the freeze last?
Until you remove it.
Will I receive written confirmation of the freeze?
Yes. Within ten days of the freeze the credit reporting agencies will send you written confirmation and a unique personal identification number or password to be used when providing authorization for the release of your credit report to a specific party or for a specific period of time.
Does
placing a freeze affect my credit score?
No. Placing a freeze has no effect on your credit score.
Do I have to be a victim
of identity theft to place a freeze?
No. However, there may be a fee if you are a non-victim of identity theft (see below).
Is
there a fee to place a freeze?
If you are a victim of identity theft, there is no fee to place a freeze. If you are a non-victim, there is no fee for the first freeze you place, but there is a $5 fee for a second freeze and for each subsequent freeze.
How do I prove I was a victim of identity theft?
By providing a
copy of a signed Federal Trade Commission ID theft victim’s affidavit
or a
valid police report.
How
do I remove a freeze?
You must contact the credit reporting agencies by certified mail, overnight mail or such other methods (telephone or Internet) that may be adopted by the agencies. You should indicate whether you are authorizing the release of information to a specific party or for a specific period of time. You must provide proper identification and the unique personal identification number or password that you were issued upon placing the freeze.
How
soon will a freeze be removed?
Within three business days of receipt of your request for removal.
Is there a fee to remove a freeze?
If you are a victim of identity theft, there is no fee to remove a freeze. If you are a non-victim, there is a $5 fee for each removal.
Are there exceptions to a
security freeze?
Yes. Credit reporting agencies can still release your credit report to parties including existing creditors, law enforcement agencies and child support agencies.
Will a security freeze delay or interfere with credit or employment applications?
Yes.
Unless you have lifted the freeze for a specific party or for a specific
period time, a credit reporting agency will not release your credit report.
Therefore, a security freeze, unless lifted, may delay, interfere with or
prohibit the timely approval of any request or application you make regarding a
new loan, credit, mortgage, government services or payments, insurance, rental
housing, employment, investment, license, cellular phone, utilities, internet
credit card transaction, or other services, including an extension of credit at
the point of sale.
What
are the addresses of the credit reporting agencies?
Experian
Security Freeze
PO Box
9554
Allen
,
TransUnion
Security Freeze
PO Box
6790
Fullerton
,
Equifax
Security Freeze
PO Box
105788
Atlanta
,
