| What exactly is a credit freeze and how do I do it? | | | | banks and other lenders to take extra steps to |
| In this new age of information technology, our | | | | verify your identity before issuing credit. So what's all |
| personal privacy has taken a major hit. No longer is | | | | the fuss about? |
| anyone truly anonymous, but in actuality you can be | | | | First and foremost, the credit bureaus serve the |
| found almost instantaneously by a search of the | | | | credit card companies. Always remember that. Also, |
| internet. If you don't believe me, type your name | | | | consumer credit counseling, allegedly intended to help |
| into Google and see what comes up. You might be | | | | the consumer, is funded by the credit card |
| shocked. | | | | companies. Do you see the relationship now? Tell me |
| To make matters even worse, you can also do a | | | | who owns who here. |
| Google search for 'background checks' and you will | | | | Who is opposing Credit Freezes? |
| again be shocked at all of the companies offering | | | | Credit reporting agencies are! They make a lot of |
| their services anywhere from $39.00 up to $149.00 | | | | money in selling your personal information to brokers, |
| to find out anything on anyone. This search you will | | | | car dealerships, banks and mortgage brokers. Have |
| pay for can include their social security number, | | | | you ever wondered why you got that Pre-Approval |
| corporate tax I.D. number, home address, place of | | | | from the car dealership in the mail? They have paid |
| employment, what type of car they are driving, their | | | | either the credit bureau directly or a third party |
| credit rating and just about anything else you can | | | | company that paid for information in the range of |
| think of. | | | | beacon scores that they are looking for. The car |
| Did you know there's a new law that will help stamp | | | | dealership might be targeting only people with |
| out identity theft by allowing consumers to freeze | | | | discharged bankruptcies or they may be targeting |
| their credit information? | | | | consumers that have had a little slow credit but no |
| What this credit freeze means is that you have the | | | | bankruptcy or repossession. Car dealers make more |
| right to decide who can and cannot access your | | | | money off both of these classes of consumer, so it |
| personal information. There are a few timing pitfalls in | | | | benefits them to target these two groups. |
| doing this but if your identity has been stolen or you | | | | How-To: Eight of 12 states allow all consumers to |
| fear it may be, this may be just what the doctor | | | | place credit freezes on their credit reports. In four of |
| ordered for you. Unfortunately, there are only twelve | | | | the states, you can only place a credit freeze in your |
| such states that have placed this law into effect thus | | | | file if you have been the victim of ID theft and have |
| far, with California being the first and New Jersey | | | | a police report to back it up. The cost of a security |
| recently enacting it. | | | | freeze varies from state to state. The cost to thaw |
| What caused this freeze-out law in the first place? | | | | a credit freeze also varies from state to state. |
| This is the simple part. Unfortunately, credit card | | | | However, most states do offer the freeze free of |
| companies are not our friends. They never have | | | | charge if you can prove you have been victimized by |
| been and never will be. Keep in mind that the credit | | | | an identity thief. |
| card companies were the largest, single contributor | | | | To place a credit freeze on your file, you must mail |
| to our last presidential campaign and that alone should | | | | (certified) the following information to at least one of |
| make you sleep better. | | | | the three major national credit bureaus, Experian, |
| What this law has done is help expose security | | | | Equifax or TransUnion: |
| breaches at huge companies such as Lexis-Nexis and | | | | • Your Full name: First name, middle name, |
| Choice Point-two companies recently in the news | | | | last name, Jr., etc.- • Current home address |
| that 'accidentally' lost over 40 million Americans | | | | and addresses for past five years, Social Security |
| personal identity information. Overnight, millions of | | | | number and birth date- • Payment by |
| Americans had their social security numbers, car | | | | check, money order or credit card. You will be asked |
| accounts, bank accounts and credit card numbers all | | | | to verify the name, account number and expiration |
| over the streets. This new law has a stipulation that | | | | date on the credit card. Costs vary from state to |
| should a breach occur, data brokers have to inform | | | | state, but initiating a freeze will run you anywhere |
| consumers immediately. | | | | from zero to $10. Lifting it will run another $5.00 to |
| Data Brokers? Here's the part that seems to shock | | | | $12.00. |
| people in America. Credit bureaus and data brokers | | | | Credit bureaus must place your freeze no later than |
| buy and sell your name, address, Social Security | | | | five days after receiving your written request. After |
| number and credit file info to anyone who is willing to | | | | you send your letter asking for the freeze, each of |
| pay for it. The fraud alert allows all U.S. citizens to | | | | the credit bureaus will send you a PIN or personal |
| place a 90-day watch on their credit file, requiring | | | | identification number. |