How to put the (credit) freeze on
BY SUZE ORMAN Special To Florida Weekly
The credit reports on file at the three credit bureaus - Equifax, Experian and Trans-Union - are your personal financial resume. One of the best ways to protect yourself from identity theft is to freeze your credit reports so unauthorized people can't sneak a peek. That can be incredibly helpful when an identity thief is attempting to get a credit card or a loan using your name and financial information. Any time a credit card issuer or lender wants to size up how good a customer you're likely to be, they check your credit report. If they can't see it, there's very little chance they would consider offering you - or someone impersonating you - a new card or loan.
Criminals who gain enough personal data about you - a Social Security number, a birth date, a current address - can apply for cards or loans as if they were you; the business assessing their application checks your credit report. If the request is approved, that's when your financial life becomes a nightmare. It can be months or years until you realize someone is masquerading as you and has, in effect, ruined your credit. Many people find out the horrible news when they're applying for a home or car loan and are shocked to realize their credit is a mess because of the thief who has run up all sorts of unpaid debt in their name.
If you put a freeze on your credit report, it means virtually nobody - not a credit card issuer, lender or even a prospective employer - can view it until you personally "lift" the freeze and grant them access. Even if thieves steal some of your personal info, their plans will be thwarted as soon as they try to pose as you and the lender can't take a look at "their" credit report.
The bad news is that not all states allow them and, to be frank, it can be a bit cumbersome to initiate one. That said, once you have the freeze in place, you typically just need to make one phone call or go online to lift it. When you're in the market for a mortgage or credit card, you can temporarily remove the freeze to let a creditor see your report.
How do you put a freeze on? The credit bureaus list the requirements on their Web sites, but you may have trouble finding them. Here are the specifics:
Equifax Security Freeze
P.O. Box 105788
Atlanta, Ga. 30348
- Send request by certified mail.
- Include full name, current and previous addresses for past two years, proof of current address (such as a utility bill), Social Security number and date of birth.
Experian
P.O. Box 9554
Allen, Texas 75013
- Send request by certified or overnight mail.
- Include full name with middle initial and Jr./Sr., etc.
- Include current address and previous addresses for past two years, Social Security number, birth date and two proofs of residence (government-issued ID such as a driver's license and a recent utility bill, insurance statement or bank statement).
TransUnion Fraud Victim Assistance Department
P.O. Box 6790
Fullerton, Calif. 92834
- Send request by certified or overnight mail.
- Include full name with middle initial and Jr./Sr., etc.
- Include current address and previous addresses for past two years, Social Security number and birth date.
For non-victims, there is typically a fee of $5 to $20 to enact a freeze, as well as a fee to temporarily lift or permanently remove it. (In some states, these fees are waived for senior citizens.) Costs and rules vary from state to state. The best way to find the information for your state is to go to the Consumers Union Web site (consumersunion.org/campaigns/learn more/003484indiv.html). Scroll down to find your state, then click on the link with more information on how to put on a freeze.
If you live in a state that doesn't allow consumers to freeze their reports, you should contact your state and federal representatives to find out why your state doesn't think it's important to allow residents to take steps to protect their financial identities.
How to protect your good name
In 2006, identity theft accounted for 36 percent of more than 600,000 fraud complaints lodged with the Federal Trade Commission. To help decrease your odds of becoming a victim, visit the FTC Web site for more information at www.ftc. gov.
- Suze Orman is a best-selling author and Emmy award-winning TV host whose new book, "Women and Money," was published in March 2007. For details, please visit www.suzeorman.com.
