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Credit security freezes to prevent ID theft
By karen | December 30, 2007
When reviewing suggestions for preventing financial identity theft in magazine articles and on the web I am surprised at how infrequently I see any mention of putting a security freeze to prevent credit bureaus from giving out information to potential thieves.
I often see “check your credit reports frequently”, but this method will only tell you that a problem may already have occurred.
The problem with credit freezes, though, is they are a hassle to set up, and potentially live with. I believe that the credit bureaus do not want you to do this. Each bureau will charge you $10 to set up the freeze, so you are out $30, or $60 if married to do this. If ever you do want to apply for a loan or open new retail credit accounts they charge you to release this information and there are delays associated with it. Not all states in the US allow for it. And there has been periodic proposed Federal legislation that has threatened our rights to do this except for those who already have been victims of ID theft. Finally, security freezes on credit information won’t prevent all forms of ID theft, but it will keep thieves from opening up new credit accounts in your name.
I feel that it is unfair that credit bureaus make money by distributing personal information and that we have to pay to either have control of it or to check it periodically.
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