Laws to Freeze Credit Card Accounts

New ‘Freeze Laws’ help in the fight against identity theft…

Thieves often use stolen information to create new credit card accounts or  tap into existing ones by accessing consumers personal data. In an effort to offer more control in the fight against identity theft, 37 states and the District of Columbia have recently adopted new laws which allow consumer credit files to be frozen, in affect stopping all activity on accounts when a threat of fraudulent activity is suspected.

Consumers who request a freeze on their credit files will effectively lock all access to their credit records. No new accounts can be opened during this time. Any attempts to open a new line of credit will be denied since access to credit records (which is required by lenders for approval) will be unavailable. If new accounts are needed, the consumer has access to a PIN number which temporarily unlocks their credit file.

Freeze law legistlation has been enacted in 37 states with specific rules for each. Most states allow each of the three major credit bureaus to charge between $5 and $10 to initiate the protection or to lift the freeze. For example, Florida offers no fees for identity theft victims and seniors 65 years and older. All others will pay $10 to place the freeze, lift it temporarily, or remove it altogether. Indiana residents will pay absolutely no fee.

Here’s a list of states  that have “freeze” laws on their books:

Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Indiana, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, New York, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin, Wyoming.

The Consumers Union’s Guide to State Security Credit Freeze Laws is available at http://www.consumersunion.org/securityfreeze.htm and offers detailed instructions explaining how consumers can exercise their rights in each state. Additional information about security freeze laws, can be found on the Federal Trade Commission’s web site at:

http://www.ftc.gov/bcp/edu/microsites/idtheft/credit-freeze.html