Many Unaware of Credit Freeze Options
Not everyone is aware of this great identity theft tool…
A new study of 8,412 respondents by the AARP Public Policy Institute, conducted between April and May 2007, shows that 55% of respondents were ‘very concerned’ about becoming the vicitim of identity theft or fraud - but only 31% knew about the option to freeze their credit accounts. 57% said they wouldn’t even know where to find information about credit freezes, with most responding that their bank or credit union would be the first place they’d look.
Older consumers, the most vulnerable to identity theft or credit related fraud, don’t know that the tool exists and are often reluctant to use it. The difficulties in implementation and sending copious amounts of personal information in order to enact a freeze was cited by respondents as the main reason for not taking advantage of the system.
Thirty-nine states and the District of Columbia have laws enabling consumers to freeze their credit, each with varying costs and regulations. To freeze an account all three credit agencies charge $10 to initiate and $10 to unlock, and require certified mailings throughout.
Experian enables consumers to unlock their credit in 15 minutes via a phone call, whereas Trans Union and Equifax take several days to unlock the freeze. “Experian should be applauded for making the freeze easier to use,” said Consumers’ Union policy analyst Jeannine Kenney. “All three credit bureaus should make it fast, affordable, and easy for consumers nationwide to take advantage of this important identity theft safeguard.”
“Legislators and regulators can take a number of actions to make security freezes easier for consumers to use,” said AARP public policy analyst Neal Walters. But before action is taken, consumers need to be aware that the option exists. Once people start using credit freezes on a wider scale, it’s likely improvement will be made across the entire system.
* To find out more about credit freezes, visit: Experian, Equifax or TransUnion
