Credit "Security Freeze" Can Help Combat Identity Theft

By Senator Michael A. O'Pake (D-Berks)
Senate Democratic Whip

          Harrisburg, March 27, 2008 -- Pennsylvania's consumers have a new tool available -- under legislation I joined in sponsoring -- to help prevent identity theft and, more specifically, to thwart the ability of identity thieves to open up new credit card accounts or take out loans or lines of credit in the names of their unsuspecting victims.
          For many older adults who have long ago established their good credit standings and who don't anticipate opening up any new credit cards or taking out any new loans anytime soon, placing a credit "security freeze" on their credit reports on file with the national credit reporting bureaus may make very good sense.
          Such a credit "security freeze" prohibits the credit bureaus from releasing any credit information about you to anyone without your express permission.  Businesses typically check a person's credit history before issuing credit or opening new accounts.  A credit "security freeze" on your credit report prevents new accounts from being opened.  What's more, when a freeze is in place with a credit bureau, any changes in a consumer's name, date of birth, Social Security number or address must be confirmed with the consumer by the credit bureau 30 days before the change is posted to their file. Placing a security freeze on your credit bureau report does not affect your credit score, nor does it keep you from obtaining the free credit report you're entitled to once a year, or from buying your credit report or score.
          Pennsylvania's credit "security freeze" law (SB 180, Act 163/2006) -- which became effective just this past year -- is now one of 39 such laws in states across America.  But, unlike other states, Pennsylvania's law stipulates that seniors 65 years of age or older are exempt from having to pay any fee for the placement of a security freeze on their credit reports.  In addition, there is no fee for the placement of a freeze on the reports of Pennsylvanians of all ages who have had their identities stolen.  Our law also limits the fee for the freeze for everybody else to no more than $10.  Credit bureaus can charge consumers up to $10 each time they temporarily remove a security freeze but there is no fee to permanently remove the freeze.
          Requests to place a "security freeze" on your credit report -- as maintained by the three major credit bureaus -- must be made by certified mail.  More information is available by contacting the three major credit bureaus toll-free.  They are Equifax at 1-800-685-1111, Experian at 1-800-290-5195; and Transunion at 1-888-909-8872.
          Keep in mind, however, that placing a credit security freeze on your credit report is a voluntary option that's entirely up to you.  Consumers should carefully consider whether taking such action is right for them and, if it is, plan ahead to arrange to remove the freeze before seeking a loan or new credit.
          And, don't forget, monitoring and reviewing your credit report for accuracy is yet another way to guard against identity theft.  Consumers are entitled to a free copy of their credit reports once every year by calling 1-877-322-8228, or by visiting www.annualcreditreport.com on the Internet.

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