Published Tuesday, September 23, 2008

Credit freeze law offers identity theft protection

The Times-Herald

After three years of consumer advocacy on the part of the Georgia chapter America Association of Retired Persons and its 1.1 million members, the Georgia General Assembly passed House Bill 130 -- which gives Georgians an effective tool to fight new account fraud.

"Every year, identity theft thieves scam $16 billion by opening up new credit using someone else's good name," according to an AARP Georgia press release.

"Georgia ranks 7th in the nation for identity theft," according to Yolanda Hallas, associate state director for Community Services for AARP Georgia.

New account fraud comprises 15 percent of identity theft cases, according to data from the Federal Trade Commission's Identity Theft Clearing House, as cited by the AARP release.

Victims spend "an average of $1,180" and work and average 40 hours per case to correct their accounts.

The bill, which went into effect Aug. 1, protects Georgians by allowing them to block access to the use of their credit, thus preventing credit fraud before it ever occurs.

"To use credit freeze protections, consumers need to contact each of the major credit bureaus to request the freeze," according to the AARP.

The request should be made to all three major consumer reporting agencies -- TransUnion, Equifax and Experian -- since each might house different credit data. The request may be made in writing, by telephone, or through secure electronic connection.

Within 10 days of acting on a request, the consumer reporting agencies will mail the consumer a four-digit PIN number. The PIN number may be used any time you want to apply for new credit or access your credit report.

Without this PIN number, an identity thief will be unable to apply for new credit using your name or access your credit report. A cost of $3 will be charged by each credit bureau.

The Georgia statute creates a $3 fee cap across the board on freezing requests, to include: initial freeze requests; requests for a temporary lifting of the freeze for large purchases that require a credit check; and requests to remove the freeze if a consumer no longer wishes to have his or her credit status frozen. People over the age of 65 will have access to freezing, lifting and removing a credit freeze at no cost.

Additionally, if you are the victim of identity theft and can produce a police report or other official documentation acceptable to a consumer reporting agency, you have the right to a security freeze at all three credit reporting agencies at no cost.

HB 130 mandates that credit bureaus lift a freeze at the request of the credit holder within 15 minutes to facilitate purchases that require credit checks, such as automobiles, appliances and other large ticket purchases.

To lift a freeze, temporarily for a large purchase, or permanently, consumers must provide proper identification, your PIN or password, and fee payment as required.

If lifting temporarily, you must indicate the time period for which your credit report shall be made available to users of consumer credit information.

You will still be able to request an annual free copy of your credit report from each of the three credit reporting bureaus.

By law, placing a security freeze on your credit will not harm your credit rating.

Information about credit freeze protections, including template letters, is available on AARP Georgia's Web site at: www.aarp.org/ga.

Interested consumers can also request a security freeze kit by contacting Tobias Tillmon at the AARP Georgia state office at: 1-866-295-7281. The kit contains information about AARP, a "frequently asked questions" document, three security request forms (one for each credit reporting agency), and annual credit report request form (if you wish to obtain a free copy of your credit report), and mailing labels for each of the credit agencies.

Credit freezing will not stop the steady flow of pre-approved credit offers, a source of concern and aggravation for many consumers.

To stop pre-approved credit offers, call 888-5OPTOUT (888-567-8688), or log onto: www.optoutprescreen.com . This will stop most of the deluge of pre-approved offers and is good for five years, or you can permanently opt out.