Consumers score right to freeze credit
In a major reversal, TransUnion, one of the Big Three credit bureaus, says it will allow individuals in all 50 states to freeze their credit histories.
The service, which goes into effect Oct. 15, is a big victory for anyone who wants to be more proactive about preventing identity theft, consumer advocates say.
"Consumers deserve the right to a low-cost security freeze that makes it easy to prevent crooks from opening fraudulent accounts," says Gail Hillebrand, senior attorney for Consumers Union.
TransUnion broke ranks with Experian and Equifax. A June story in USA TODAY described how the Big Three credit bureaus have lobbied for two years to stop strong credit-freeze laws from being adopted at the federal and state levels. The bureaus disseminate credit histories used by lenders to issue credit cards, mortgages and other loans.
A credit freeze bars the bureaus from issuing your credit history, the summary of loans and payments that forms the basis of your credit score. Because few lenders will issue credit without first seeing a credit score, putting a freeze on your information means ID thieves can't use stolen Social Security numbers to fraudulently open new accounts.
Dozens of states have adopted laws requiring all companies and government agencies to disclose data thefts and credit bureaus to permit freezes.
"Increased awareness and concern regarding identity theft have resulted in greater consumer demand for options like file freeze," says Mark Marinko, president of consumer services at TransUnion.
Equifax and Experian are discussing whether to follow TransUnion's example.
"We are finalizing our approach," said Equifax spokesman David Rubinger.
Experian spokesman Don Girard said the company is "analyzing the situation."
Hillebrand says all three need to offer national freezes to fully protect consumers. "It's like locking the front door, and leaving the back door and the window open," she says.
Consumers Union estimates an average of 27,000 Americans become victims of identity theft each day. Cyveillance, a security firm that crawls the Internet looking for tainted Web sites, has found more than 1 million stolen Social Security numbers on computer servers controlled by criminals.
TransUnion says it will provide the security freeze free to ID theft victims and charge others $10 to initiate a freeze and $10 to lift it temporarily or remove it. States with the most consumer-friendly security-freeze laws typically charge $5.
TransUnion is also offering a $14.95-a-month service called TrueCredit 3-Bureau Monitoring that gives consumers unlimited access to their credit reports and scores. It includes an online credit-freeze feature.
"There's a lot of pressure building as ID theft becomes more of an issue," says David Certner, director of legislative policy at AARP.
WBJ Web Partners
Most Recent
Most Recent
0 Comments