The Specifics of the Bureaus’ Credit Freeze Programs
This is a public WSJ link for the moment, but in case it goes away, most of Terri Cullen’s October 14 article is excerpted below for fair use and discussion purposes:
By November, consumers in all 50 states will be able to “freeze” their credit reports at the three major credit bureaus to help prevent identity theft.
Previously, Equifax, TransUnion and Experian Group generally extended this privilege only to identity-theft victims and to senior citizens as required by state law.
When you freeze, or lock, your credit files, lenders and other third parties can’t access your credit report until you request that the credit bureaus “thaw,” or open, it. That means you — or a potential identity thief — can’t open a line of credit in your name until the credit-reporting companies get written permission from you to let third parties see your information.
TransUnion will offer security freezes nationwide starting tomorrow (October 15). Equifax says it will offer freezes by the end of the month. Experian announced last week that it will make freezes available to all on Nov. 1.
….. But it’s not an easy process — or an inexpensive one. To freeze a credit report, you must write to each of the three bureaus (certified mail is recommended). When your file is frozen, you are given a personal identification number (PIN), which you’ll need to remove the freeze from the file. To thaw the files, you must again write to all three bureaus, and the process can take three business days or more. If you can’t remember your PIN, it can take even longer.
Then there are the fees: Generally, victims of identity theft can freeze their credit reports at no charge, but non-victims on average must pay $10 to initiate a freeze on one file and another $10 to thaw it. (Those fees may be reduced or eliminated for residents of states that require lower freeze fees.)
Is a credit freeze right for you? If you’ve been a victim of identity theft, it’s generally a good idea. Even if you haven’t been a victim, freezing your credit files provides a powerful layer of protection against identity theft.
That said, if you know you’ll be opening a line of credit in the near future, or you’re changing jobs and it’s likely potential employers would want access to your credit history, hold off for now. That way you can avoid the fees and hassles of having to lock and unlock your files in the near term.
I would hope that the bureaus figure out a way to allow freezes and thaws online or via mail, with appropriate security precautions. The snail-mail restriction will be a significant deterrent to sign-ups.
