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Identity Theft: Credit Freeze Does Not Freeze Your Existing Credit Cards
June 13, 2007
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Although many Americans are familiar with Identity Theft, and the severe consequences of becoming a victim of such crime, many individuals are not familiar with one of the most effective tools for fighting Identity Theft: Credit Freeze. In a recent informal poll/survey conducted by GammaWealth Strategy & Research, and published at www.creditlock.com , visitors were asked what they believe happens when they place a Credit Freeze. 77% answered correctly, by saying that access to their credit report is frozen. Meanwhile 21% answered incorrectly, with 2% saying that access to their Credit Cards is frozen, 11% saying that access to both their credit cards and credit report is frozen, and 8% saying that neither access to their Credit Report, nor access to their Credit Cards is frozen. Such result implies that if such poll was conducted by phone interviews with a random sample of the general public, substantially less than 77% would have answered correctly due to several factors: A- some of the visitors to www.Creditlock.com are already familiar with Identity Theft and various protection measures, B- other visitors could have simply read about Credit Freeze on the website prior to answering the survey question, C- there is a higher likelihood for those that ignored the online poll that they do not know the answer, rather than that they do know the answer (it is human nature not to want to admit what we do not know, and to brag about what we do know), D- other similar survey nuances.... |
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Bachar Samawi, Chief Strategist for Gammawealth Strategy & Research estimated: "Given various nuances associated with the method the informal poll was conducted, I believe that as much as 60% to 90% of the general public either has never heard of Credit Freeze, or is misinformed about it."
Credit Freeze is also known as Credit Lock, and Security Freeze. However, of all such names, the one name that is least likely to cause confusion is Credit Lock. In reality, when a consumer utilizes such tool, he is simply locking access to his credit report, because of the ability to request the removal of such freeze at any time, either on a permanent or temporary basis. Psychologically, when the term "Freeze" is used, it may induce the false perception of a drastic negative action, when in reality it is a positive highly effective protection tool. Such false psychological impact could be related to the fact that we often hear expressions such as: "his/her assets were frozen", "freeze or I'll shoot", etc... The word "Lock" typically has positive connotations associated with it, typically evoking a sense of security: "lock your car", "lock your home", "lock your office", etc...
Furthermore, when a consumer places a Credit Lock, or a Credit Freeze, he/she is still able to have access to his own Credit Report. Most importantly, unless such consumer has canceled his credit cards, a Credit Freeze does not freeze his access to his existing credit cards. A consumer who has placed a Credit Freeze can continue to use his credit cards as usual. A credit freeze prevents new credit and new loan accounts from possibly being opened, by blocking access to the consumer's credit report. Lenders typically require access to one's Credit Report prior to approving new loans and credit accounts. A consumer who has placed a Credit Freeze can still open legitimate Credit and Loan accounts by removing such freeze on a permanent or temporary basis. Such removal request should typically be processed anywhere between 15 minutes and 5 days from the time such request is received by the credit Reporting agencies, depending on the state of residency. |
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Although during the past five years reference has been made to all three names of Credit Lock, Credit Freeze and Security Freeze, it may make sense for journalists, law makers, identity theft protection advocates and others to primarily refer to such tool as a credit lock in order to limit consumer confusion. In a recently launched identity theft protection feature by Transunion, available through their Credit Monitoring service, they presented such tool as the ability to "Lock and Unlock" your credit report. Such naming preference trend would be expected to continue.
Consumers interested in additional information on Credit Freeze / Credit Lock / Security Freeze, as well as service availability throughout the United States, can visit www.creditlock.com/creditlockdownpro.html .
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