Rep. Pettengill Releases Information on Credit Freezes
9/26/2007
Rep. Pettengill Releases Information on Credit Freezes
Possibly the Next Step in Identity Theft Protection
(DES MOINES) —Today Rep. Dawn Pettengill (R-Mount Auburn) released information on a possible new way to curb identity theft. Continuing a trend that began in California in 2001, states have begun implementing a way for their citizens who are victims of identity theft to fight back. Credit freezes allow citizens to prevent identity thieves from establishing new lines of credit. Proponents of the credit freeze concept claim that the process gives consumers more control over their credit history and allows them to control who has access to this sensitive data. Those opposed to the freezes say it does nothing to prevent identity theft and can serve as an impediment to obtaining new credit or getting a job requiring security clearance. According to Rep. Pettengill, this concept has started to generate discussion in Iowa.
Rep. Pettengill explains that a credit freeze restricts a credit reporting agency from releasing an individual’s credit report or any information from the report without authorization from the individual. Who can implement a credit freeze varies from state to state. Some states limit this to victims of identity theft, while others make it available to all citizens. Since the freeze prevents the establishment of new credit lines for a person, the perpetrators of identity theft are stopped from drawing additional funds against the person. The freeze also helps to identify when the perpetrators are trying to obtain the credit and locate them as well.
The process for implementing a credit freeze is pretty similar between states with credit freeze laws. To place a credit freeze, the eligible person must write to each of the three credit bureaus. They must provide identifying information. For example, in California, identity theft victims are required to provide a copy of their police report of identity theft to the credit bureaus. Californians who are not victims of identity theft are required to pay a fee of $10 to each of the credit bureaus for the freeze. The fee amount varies between the states.
“As identity theft becomes more prevalent we need to be looking for new ways to protect Iowans from this kind of crime,” said Rep. Pettengill. “Recently I’ve been receiving questions about how to defend consumers and specifically about credit freezes. I will continue to research the information and discuss more ways to keep Iowans safe from fraud.”
Currently, 30 states and the District of Columbia have implemented some form of credit freezes.
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