Freeze identity thieves out of your credit files Posted by mitcka at 05/19/05 04:29 PM

Of course, there are some common sense steps you can take to reduce your risk, like shredding documents and being stingy with sensitive information like your Social Security number. But when there’s a news story virtually every week about another company that has lost sensitive data because of lax security, you begin to wonder if it’s just a matter of time before you become the next victim.

Some states are finally beginning to enact new laws to give consumers the tools they need to protect their credit record from being ruined by identity theft. Washington Governor Christine Gregoire just signed a bill into law that allows identity theft victims and consumers who’ve been notified of a security breach to put a security freeze on their credit file, which prevents crooks from opening new accounts in their names. California, Vermont, Texas, and Louisiana already have security freeze laws on the books and many other states are considering them. In California and Louisiana, all consumers can put a security freeze on their credit file, not just those who’ve already become a victim of identity theft. The Vermont and Texas laws only apply to people who’ve already had their identities stolen.

Financial industry lobbyists are pulling out the stops to prevent other states from falling suit. They claim the reform is overkill that will make it harder for consumers to get quick credit when they need it. But these laws let consumers decide for themselves whether they want the extra protection afforded by a security freeze. Shouldn’t you be allowed to decide who gets access to your credit file?

comments (2)

1 Posted by alkemist03 at 07/04/05 05:59 AM

In addition to freezing one's credit file, a person should have the right to declare a type of "credit bankruptcy". This would provide an additional measure of protection/exhonoration for those people whose credit has been irreplicably damaged by ID theft.

2 Posted by Kathy Watkins at 10/05/05 03:20 AM

It seems to me that we as citizens should be demanding that law enforcement and the judicial system get much tougher on these criminals. Every politician wants to be "tough on crime", but when it comes to Identity theft criminals, the politicians seem quite happy with the status quo.

It's time to light a fire under Congress to pass some tough laws with tough penalties and fund law enforcement to catch these criminals and prosecute them.

Of course it is complicated to track down these thieves, but it is certainly doable if we really want to do it.