Innovative Credit Freeze Laws Tackle Identity Theft: Credit Reports Access is Reinvented
April 18, 2007
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Credit Freeze / Security Freeze / Credit Lock laws are becoming effective in an additional 12 States and DC in 2007. Such laws have already become effective in January 2007 in Hawaii (HI), Illinois (IL), Kansas (KS), New Hampshire (NH), Oklahoma (OK), Pennsylvania (PA), Rhode Island (RI) and Wisconsin (WI). In July 2007, Credit Freeze laws will become effective in District of Columbia (DC), Montana (MT), New Mexico (NM), West Virginia (WV), and Wyoming (WY). Prior to 2007, similar laws had already become effective in another 17 States. An interactive U.S. map is available at www.creditlock.com/creditlockdownpro.html , showing the U.S. availability of Credit Freeze / Credit Lock / Security Freeze on a state by state basis. By the end of 2007, Credit Freeze laws would have become effective in a total of 30 U.S. States.
With losses from Identity Theft mounting year after year, It seems inevitable that such laws will ultimately encompass most, if not all, of the U.S. Under such laws, individuals are granted power to control access to their Credit Report, hence minimizing the risk of the issuance of unauthorized credit in their name.
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 | The most progressive of such Credit Lock laws is yet to
become effective in Utah in September 2008. Under such law, as in most
other states with similar laws, Utah residents can Freeze / Lock access
to their Credit Report. However, in Utah, unlike all other states,
residents will be able to request a temporary removal of such request,
to be effective within fifteen minutes from the time such request is
placed. In most other States, Credit Reporting agencies have anywhere
between 3 and 5 days to make Credit Freeze Removal requests effective.
The
Utah law has the potential to revolutionize the way Credit Reports are
accessed throughout the entire nation. In essence, for security
purposes, it is appealing to most individuals to Freeze / Lock their
Credit Report on a permanent basis, and request a temporary removal of
such Credit Lock / Credit Freeze whenever needed. A similar analogy is
the security of one's home. The front door of a home is always closed,
and is typically opened only temporarily to allow a familiar person
into the house. The fifteen minute requirement under Utah law is what
makes such analogy practical.
To date, Credit Reporting
agencies have warned consumers that placing a Credit Freeze / Credit
Lock could delay and prevent legal access to their credit report when
needed by employers, landlords, authorized financial institutions,
etc... However, the ability to temporarily and permanently remove a
Credit Freeze / Credit Lock, is a valid counter argument. Many
individuals may feel that protection against Identity Theft justifies
waiting 3 to 5 days for the removal of a Credit Freeze / Credit Lock.
Most likely, all identity theft victims, who sometimes have to spend
months and even years to clear their name in an Identity Theft case,
would find such inconvenience well worth the security and peace of
mind.
In the case of Utah, the fifteen minute requirement
means that there is practically almost no inconvenience associated with
the removal of a Credit Freeze / Credit Lock. Residents in other states
will most likely lobby for similar requirements. |
Ultimately, it is
conceivable that control of Credit Reports will shift to consumers, as
they take charge of who is allowed to access their Credit Report.
However, until such day comes, many consumers in existing Credit Freeze
States are already benefiting from the ability to Freeze / Lock their
Credit Report.
Related Links:
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