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As of Nov. 1, 2007, consumers wanting stronger protection
against identity theft can freeze their credit reports at all three
major credit-reporting agencies -- regardless of their state's laws.
TransUnion was the first of the three largest credit bureaus to grant credit freezes to all consumers. It rolled out its plan on Oct. 15. Equifax and Experian mirrored the offer weeks later, and introduced their universal credit freeze plans on Oct. 31 and Nov.1, respectively.
Consumers living in states that either don't have
credit freeze laws,
have laws that aren't in effect yet or limit credit freezes only
to ID theft victims now have the ability to place a freeze on their
TransUnion, Equifax and Experian credit reports. Victims of identity
theft will be able to place, lift or thaw, and remove the freeze
for free, while nonvictims will pay $10 each time.
"We're trying to give consumers the opportunity to choose the identity theft fraud solution for their specific circumstances," says Steve Katz, spokesman for TransUnion's Truecredit.com.
None of the new plans will pre-empt state laws or state-set prices on credit freezes.
Consumers in all 50 states already have the right
to place a fraud
alert, regardless of whether they are victims of ID theft. The
fraud alert lasts for 90 days and alerts new creditors and other
businesses checking the creditworthiness of an applicant that the
consumer may be a victim of fraud.
While the fraud alert merely asks the lender to take
additional precautions, a credit or security freeze
prevents third parties from receiving a copy of the consumer's credit
report or credit score, making businesses less likely to grant credit
or services to the applicant. Only businesses with a permissible
purpose or for whom the consumer lifts the freeze may obtain
the consumer's credit information.
"(The) credit freeze is part of a trend of giving
individuals more control over their consumer reports. This control
is necessary because credit grantors do not screen applications
for fraud carefully enough to stop identity theft," says Chris
Hoofnagle, senior staff attorney at the Samuelson Law, Technology
& Public Policy Clinic and senior fellow at the Berkeley Center
for Law and Technology at the University of California-Berkeley.
Those who wish to freeze their credit report can do so by mailing a freeze request to TransUnion. They will receive a PIN, which they can use to lift the freeze temporarily by either writing or calling. Consumers also can remove the freeze permanently, but must do so in writing. The credit freeze will remain in effect until removed by the consumer.
At Experian, consumers can place a freeze by mail
or online
and can thaw it instantly online,
over the phone or via mail with their PIN. They can submit a request
for permanent removal by mail or online.
Consumers must send a written request to freeze their Equifax file. They can call the toll-free number provided to them to remove or lift the freeze.
Consumer advocates generally expressed support for the credit bureaus' voluntary efforts, but said they would like to see lower fees and the process of freezing and unfreezing credit reports streamlined.
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