December 14,2006

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  Freeze!

  A credit freeze is a protective action that consumers can take to block new creditors from gaining access to their credit scores and/or reports without express permission. In theory, a credit freeze puts a virtual end to unsolicited credit mailings, as pretty much all credit issuers require a credit check before offering pre-approval.

  
  Sounds good, but a bill put forward by the House of Representatives and pending approval would disallow credit freezes to all but victims of identity theft... in other words, you could request a freeze once you had been a fraud victim, but not before. Currently, 20 states have passed laws that actively allow consumers the privilege of requesting a credit freeze.

  
  The logic behind the proposed legislation is that a fraud alert (which is free) is just as effective as a credit freeze in making potential creditors jump through hoops to access personal data. A fraud alert stays active for 90 days, and then falls off automatically, whereas a credit freeze stays active indefinitely, or until the consumer pays to have it removed. Opponents of the bill say that fraud alerts are flimsy protection at best, and rally behind the rights of the consumer to protect themselves to the fullest.
  
  
  
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