20 Mar 2007
Delaware Gets Tough On Preventing Identity Theft
Delaware’s Clean Credit And Identity Theft Prevention Act
The state of Delaware is getting tough on preventing identity theft. Effective September 29th 2006 Delaware’s Clean Credit and Identity Theft Prevention Act goes into effect. This is a step in the right direction, protecting consumers from becoming victims of identity theft and it will assist those who have already fallen victim to this form of theft. The law works by giving each consumer the availability to put a Security Freeze on each of their credit reports, whether or not they have been a victim of ID theft.
What Is A Security Freeze?
A Security Freeze is just that – it freezes your credit report. This means that once the freeze is placed on your report, the credit reporting agency is prohibited from releasing all or part of your report or any other information contained in your file without your authorization to do so.
Therefore, if a thief did get a hold of your information and applied for a credit card without your knowledge or consent, the credit agency would not be able to release your credit bureau report to the third party (credit card company). In return the credit card company would not be able to approve or process the request, stopping the thief from succeeding in fraudulently gaining credit and steeling your identity.
How Do I Place A Security Freeze On My Credit Reports?
All you need to do is contact each of the three major credit reporting agencies by mail requesting the Security Freeze be placed on your file. You will be provided with a Personal Identification Number (PIN) or password, so you may temporarily unfreeze your credit report in the future for credit transactions requiring your credit bureau reports. You will need to plan ahead for your future credit applications, keeping in mind it could take up to three days to have your Security Freeze temporarily lifted.
For the most part each of the three major credit reporting agency require some basic information such as your name, Social Security Number, date of birth, address. However, you should check each of the reporting agencies, Equifax, Experian, and Trans Union, for their procedures and requirements.
Are There Any Fees Associated With A Security Freeze?
At present there is a cost of $20.00 to place a Security Freeze on your credit file. If you know you have been a victim of identity theft, or you have good reason to believe so, you may file a report with your local police department, and provide this report to the credit reporting agencies in order to waive the fee.
What Happens If A Violation Occurs?
If one or more of the credit reporting agencies violates the Security Freeze and If the Security Freeze has been violated and one or more of the credit reporting agencies has released your credit report in whole or in part that has been under a freeze, that agency must notify the consumer within five days of the violation. The credit agency must provide all the details pertaining to the violation, including the information that was release and to whom. A complaint can be filled with the Federal Trade Commission, and civil action can be brought against the offending agency.
Before rushing out a putting a Security Freeze on all your credit bureaus, make sure you read up on all the policies and procedures for each of the three major credit reporting agencies and that you understand them in full. Should you find that this is not the way to go for you, but you still want to have some type of protection without the inconvenience of freezing your report, each of these credit agencies offer monthly credit monitoring services. Where you are alerted of key changes to your credit file within 24hours, allowing you to take the appropriate action necessary to stop any fraud.
Resources:
See the official Press Release
Read all about Delaware’s Credit Report Security Freeze
Related Topics:
How To Prevent Identity Theft
How Credit Monitoring Works
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