Fighting Identity Theft With Credit Freeze, Credit Lock Gains Momentum
December 17, 2007
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According to several studies and surveys, anywhere between 7 Million and 15 Million American residents fall victim to Identity Theft annually. Such annual figures represent anywhere between 2.3% and 5% of the total population of the United States. Such large annual percentages imply that over a span of 40 years, or during one's lifetime, it is almost a certainty that one would fall a victim of Identity Theft. Given such risk, and the disruptive and detrimental effects of becoming an Identity Theft victim, it is no wonder that 39 States, and the District of Columbia, have all passed Credit Freeze / Credit Lock laws. Such laws have enabled residents to lock down access to their Credit Report, preventing Identity Thieves from securing illicit loans and credit cards in their name.
Such Credit Freeze / Credit Lock laws, which started in California in 2003, ultimately led the three national Credit Bureaus, Equifax, Experian and Transunion, to allow consumers to lock down access to their credit report in all states, including those where there are no effective Credit Freeze laws. Hence, as of November 1, 2007, residents in all 50 U.S.states, along with Washington D.C. and Puerto Rico, can lock down access to their credit report either as stipulated by State law, or under the Voluntary Program enacted by the three national Credit Bureaus.
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The fees and requirements for locking down access to one's Credit Report vary from State to State. There are tools available that simplify the process, and provide relevant fees, addresses and kits, such as Credit Lock Down Pro TM . In addition, some Credit Bureaus introduced the electronic ability to place such Credit Lock / Credit Freeze (such as Transunion's Truecredit Lock and Equifax's Credit Report Control). However, such electronic feature offered by the Credit Bureaus has been packaged as part of other services, such as Credit Monitoring, which can cost a consumer in excess of $150 per year. Furthermore, if enrolled in such feature with a specific Credit Bureau, a consumer is only able to electronically place a Credit Freeze on his/her report with that specific bureau, and not the other two bureaus. For a Credit Freeze / Credit Lock to be most effective, it must be placed with all three Credit Bureaus. Meanwhile, print & fill kits, such as those available at Credit Lock Down ProTM , are provided for all three national credit bureaus, along with relevant addresses and instructions. Credit Lock Down ProTM is available on a complimentary basis to its website members, while annual membership costs a token $4.68 or less.
Although the ability of locking down access to one's credit report, and the passage of relevant laws has taken several years, there are indications now that such Identity Theft protection tool may be gaining momentum. The introduction of the Credit Freeze Voluntary Program by the three Credit Bureaus in itself is proof of such momentum. While the ability to lock down one's Credit Report is available today to the entire U.S. population of about 300 Million, it was available to none in 2002 or before; it was available to about 59 Million Americans by end of 2003, 59 Million by end of 2004, 72 Million by end of 2005, 139 Million by end of 2006 and 300 Million by end of 2007. Meanwhile, despite such wide availability, such useful tool has not been used by many Americans. Early estimates have indicated that anywhere between 50,000 and 80,000 consumers have placed a credit Freeze. However, recent national adoption of such tool could imply higher numbers. GammaWealth Startegy & Research LLC estimates that by end of 2007, it is possible that as many as 100,000 to 200,000 consumers would have adopted a Credit Lock, and expects such number to exceed 5 Million Americans by 2012, and 15 Million Americans by 2017. Even at 15 Million, such number would be less than 5% of the total U.S. Population. Email Article |
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