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Why Consumers Need a Nationwide Credit Freeze NOW
What do a shoe retailer, an online discount broker, and a
popular clothing retailer all have in common? All three - DSW
Shoe Warehouse, Ameritrade, and Polo Ralph Lauren - sustained
breaches to their customers' accounts. Unfortunately, these three
are not alone when it comes to security breaches. CitiFinancial,
Bank of America, LexisNexis and other companies have also
experienced similar events.
Over 46 million Americans have had personal records containing
credit card numbers, bank account information, and social
security numbers lost or stolen during the first six months of
2005.
Having even just one piece of personal information is
sometimes all that an identity thief needs in order to wreak
havoc to your credit profile. Many people falsely believe that an
ID thief uses only the stolen credit cards to go on their
shopping sprees. The truth is ID thieves use your stolen
information to open new accounts for credit, cars, loans, mobile
phones and more. Most victims won't know there's a problem until
they've been turned down for credit or begin receiving calls from
creditors and collection agencies about the unpaid bills.
So, what can you do to guard your identity from criminals?
Along with vigorously protecting your social security number,
using a shredder to destroy credit card offers, and monitoring
your credit report regularly, you may also be able to use a new
line of defense against ID thieves - placing a "freeze" on your
credit files.
Placing a freeze on your credit files with the three major
credit reporting agencies - Experian, TransUnion, and Equifax -
shuts out potential lenders from accessing your credit files in
order to make you an offer for credit. When applying for new
credit accounts or loans, you would use a special password or PIN
to "thaw" your credit files, a process that takes a few days. The
credit bureaus charge around $10 for each freeze or thaw as
allowed by law.
A credit freeze protects your data since the lender can't
check your profile in order to approve any new credit.
Unfortunately, credit freezes are currently available only to
consumers in California, Colorado, Connecticut, Illinois,
Louisiana, Maine, Nevada, Texas, Vermont, and Washington.
Congress is examining laws to make credit freezes available
nationwide, however they are facing some strong opposition. And
guess where it's coming from? The credit bureaus and data
clearinghouses! They make money every time they sell your
information to banks, mortgage brokers, car dealerships and other
retailers.
The time to act is NOW. If you live in a state that doesn't
offer you, the consumer, the right to freeze your credit files,
contact your state legislators to let them know that YOU WANT TO
CONTROL who can access your personal and financial data. Names
and contact information for your Senators and Representatives can
be found at www.senate.gov and www.house.gov. Write or e-mail
them and tell them you want control of your personal data. After
all, it's your identity and your finances at stake!
© 2005, http://www.yourfreecreditreportnow.com
Author: James H. Dimmitt
James is editor of "TO YOUR CREDIT", a free weekly newsletter
with tips to help you manage your personal finances. Subscribe
today and receive his e-book "IDENTITY THEFT- How To Avoid
Becoming the Next Victim!" and other free bonuses by visiting
http://www.yourfreecreditreportnow.com
MORE RESOURCES:
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