About Security Freeze

A security freeze is one of the most effective ways to prevent identity theft. Under SB 116, beginning September 1, 2007, 39 states can put a security freeze on their credit files, which means those files cannot be shared with potential creditors.

A security freeze allows consumers to proactively "lock up" their credit information so no one can access it without their permission. This prevents a thief from falsely using someone else's identity to take out a new mortgage, apply for a credit card or get financing.

The freeze is easily lifted if consumers plan to make a major purchase, open a new credit card or take out a loan.

Background Checks - A freeze will prevent an employer from getting your credit report as part of a background check. You have to lift the freeze to allow a complete background check, just as you do to apply for credit. Be sure to request a security freeze lift at least 5 or more days prior to a temporary freeze lift to avoid any complications. The credit bureaus must lift a freeze no later than three business days after receiving your request.

A security freeze will NOT:

• lower your credit score
• prevent you from getting your own credit report
• stop credit card companies from sending you pre-approved credit offers. To stop most pre-approved credit offers, call 888-5OPTOUT (888-567-8688) or go online to www.optoutprescreen.com. You can choose to opt out for five years or permanently.

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Using a Security Freeze

What will It Cost You?

It costs $3 to place a security freeze on your credit files with a credit bureau, for a total of $9 to freeze your files with all three credit bureaus. For a security freeze to be effective for married couples, both spouses have to freeze their separate credit files. The total cost for a couple is $18.

• There is no fee for identity theft victims who have filed a police report of identity theft to freeze their files.
• To have a freeze temporarily lifted also costs $3 per credit bureau. There is no fee to permanently remove a security freeze.

how to Request a Security Freeze

To place a security freeze on your credit files, you must write to each of the three credit bureaus.

• Provide identifying information including, at a minimum, your name, address and Social Security number.
• Pay the $3 security freeze fee by check or credit card, unless you are an identity theft victim. If you are a victim, provide a copy of the police report of identity theft.
• For a security freeze to be effective for married couples, both spouses have to freeze their separate credit files, via separate letters requesting the freeze. The total cost for a couple is $3 x 3 credit bureaus x 2 people = $18.
• Send separate letters to each of the three credit bureaus. For married couples, both spouses must request to freeze their credit files via separate request letters:
  
  
• Equifax Security Freeze
  P.O. Box 105788
  Atlanta, GA 30348
  (800) 525-6285
  Experian Security Freeze
  P.O. Box 9554
  Allen, TX 75013
  (888) EXPERIAN (397-3742)
  TransUnion Security Freeze
  P.O. Box 6790
  Fullerton, CA 92834-6790
  (800) 680-7289

• The credit bureaus must place the freeze on your files within five business days of receiving your written request. If you are a victim of identity theft, they must place the freeze within 24 hours of getting the police report and information confirming your identity.
• Each of the credit bureaus will send you written notice that the freeze is in place within five days of it going into effect. This confirmation will include:
  • a Personal Identification Number (PIN),
  • instructions on how to lift or remove the freeze

How To Temporarily Lift a Security Freeze

To open a new credit account, take out a new loan or allow a background check, consumers need to temporarily lift the security freeze on their credit files. It can be lifted for a specific period of time or for a specific creditor.

• Contact each of the credit bureaus by phone and use your Personal Identification Number (PIN).
• Specify whether you want to temporarily lift the freeze for a specific date range or creditor.
• Pay the $3 lift fee to each credit bureau.

The credit bureaus must lift a freeze no later than three business days after receiving your request.

How To Permanently Remove a Security Freeze

You can permanently remove a security freeze at any time by calling the credit bureaus and using your PIN. There is no fee for permanently removing a security freeze.

The credit bureaus must remove the security freeze within three days.

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Who Can Still Access a Frozen Credit File?

When a file is protected by a security freeze, a creditor who requests that file will get a message or a code indicating that the file is frozen. However, when you have a security freeze on your credit file, certain entities can still access it.

• Your report can still be released to your existing creditors or to collection agencies acting on their behalf. They can use it to review or collect on your account.
• Other creditors may also use your information to make offers of credit, unless you opt out of receiving such offers.
• Government agencies may access your report for collecting child support payments or taxes, or for investigating Medicaid fraud. Government agencies may also access it in response to a court or administrative order, a subpoena or a search warrant.

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Fraud Alerts

A fraud alert:

• is a special message that people who suspect they may be identity theft victims can have placed on the report a credit issuer receives when it checks a consumer's credit rating
• tells the credit issuer there may be fraudulent activity on an account
• can help protect consumers against identity theft
• can slow your ability to get new credit, but does not stop you from using existing credit cards or other accounts

A fraud alert is not the same as a security freeze. While a fraud alert may slow down issuing new credit, it does not stop it. A security freeze will stop someone else getting new credit in your name.

Contact Consumer Protection

You can get your questions or concerns about using a security freeze by contacting the Office of Consumer Protection in your state.