Credit Freeze Now an Option for D.C. Residents
Residents of the District of Columbia now have the right to "freeze" their credit reports as a way to ward off identity thieves.
As of July 1, people living in the nation's capital can request a "credit freeze" from the three major credit-reporting bureaus. A freeze directs the bureaus to block access to a consumer's credit report and credit score.
While a freeze does little to stop abuse with accounts already compromised by criminals, it can limit victims' total exposure, saving them the time and expense of clearing new, fraudulent accounts from their records.
D.C. residents will need to file a written request via certified mail with the three bureaus individually, each of which may charge a $10 fee -- although those fees should be waived for residents who have been victimized by identity theft and can provide a police report to that effect. Consumers Union has more information on where to write and what information to include in a credit freeze request.
The credit bureaus are required to act within three business days of receiving a request, and should reply with a personal identification number (PIN) that a consumer can use to unfreeze his or her credit file.
Bear in mind that if you freeze your credit file you will need to plan ahead prior to making any major purchases, or before switching to a new job (a new employer may need to run a credit/background check as a condition of your employment). The credit bureaus are required to honor a credit "thaw" within three business days of receiving the request, which may be made by telephone, fax or over the Internet, depending on the bureau.
The thaw turnaround time will change as of Sept. 1, 2008, when the credit bureaus will be required to temporarily lift a freeze within 15 minutes if a thaw is requested by phone or online.
Read Keith L. Alexander's piece from Sunday's Post: "Consumers Can Block Access to Credit Files."
By Brian Krebs |
July 2, 2007; 5:21 PM ET
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Posted by: Bah! | July 3, 2007 11:07 AM
If the freeze works like a 'fraud alert', it may only last for 90 days, requiring users to set the fraud alert every 90 days.
Needless to say the financial industry doesn't like this sort of thing (discouraging people from opening new credit lines)
Posted by: Anon | July 3, 2007 1:52 PM
Anon --- the freeze stays in effect until you lift it.
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Posted by: dexter | July 3, 2007 3:25 PM
I applaud DC for taking this step, but it's time for Congress to act and make the freezes the default for credit inquiries. The credit industry lobbyists are holding this back, which is beyond ironic since they created the system that has led to rampant identity theft. Hold these people accountable!
Posted by: Matt | July 3, 2007 4:52 PM
Will the residents of the few remaining states like Virginia without the credit freeze option receive special attention from identity thieves?
Signed: Sitting Ducks
Posted by: John from Virginia | July 4, 2007 6:30 AM
For years I've advocated an "opt-in" system for credit checks, whereby the consumer has to explicitly permit a specific credit check. With a consumer-requested "credit freeze" available in many states, finally an "opt-out" system is available to many. Although this is far short of what is needed to effectively combat widespread identity theft, it is a step in the right direction. In order to make identity theft economically impractical, the next logical step is for Congress to enact an "opt-in" system. It's all about the money. Hopefully, the data brokers and financial services industry won't side with the identity thieves on this issue.
Posted by: Craig Herberg | July 4, 2007 8:10 AM
South Carolina has had bills proposing credit freeze provision languishing in the house and senate for 2 years. I bugged my senator and rep about these, but they don't want to talk about it. The credit industry lobbyists must be dumping a lot of money into this.
Posted by: SittingDuck | July 6, 2007 7:26 AM
This is great news as credit freeze is now available to about 66% of the US population. Consumers should not be discouraged by the process to place such freeze, nor the fear that such freeze may limit their ability to access legitimate credit. The freeze can be temporarily lifted, and the inconvenience of the wait of a few days is more than offset by reducing the risk of becoming an identity theft victim. Consumers can use pre-prepared kits to place or remove a credit freeze, as available at http://www.creditlock.com/creditlockdownpro.html
Posted by: bms | July 11, 2007 11:38 AM
Craig Herberg, in comment of July 4, 2007, is exactly correct. The default for everything bad (credit scanning, advertising mail,etc.) should be opt-out. People should have to actively opt-in. It is nuts that ordinary busy people struggling to get to work, take care of familties, etc. should have to take the time to protect themselves by opting out. Opt-out should automatically be the default.
Posted by: Margaret in DC | August 27, 2007 3:31 PM
The comments to this entry are closed.
Un-freaking believable. I was about to write my state legislators in Virginia to ask them to sign onto this idea. While doing my research, I found that the House Commerce and Labor Committee tabled HB 3056 (which would allow the credit freeze) in January. Doesn't look like there's a Senate bill. Completely unacceptable.