Credit Freeze Law Provides New Security for Consumers

Better Business Bureau (BBB) of Greater Maryland is informing consumers of a new Senate law, enacted on January 1, 2008 to help diminish identity theft. For a five dollar fee, Maryland residents now have the option of placing a security freeze on their credit reports. The freeze prevents a credit reporting bureau from releasing information about the individual’s credit history.

Once the freeze has been authorized, you would receive a phone call from the reporting agency prior to the establishment of a new credit account. This eliminates a thief’s ability to open an account under your name.

Up until now, victims of identity theft traditionally learned unauthorized charges had been made in their name when:

• they were contacted by a collection agency over past due accounts they never knew they had;
• they received credit cards for which they did not apply;
• significant charges showed up on a credit card bill for purchases they never made;
• they noticed unexplained charges or withdrawals on their bank accounts;
• they were denied credit for no apparent reason;
• they failed to receive bills or other mail, which may signal an address change by the identity thief;
• a lender tried to repossess a car they did not know they owned; and/or
• they were contacted by the police after a crime is committed in their name.

As you move through your daily life, you almost certainly carry personal information with you and leave bits and pieces of your personal information behind - in credit applications, insurance records, doctors' offices, etc. So, someone who is bound and determined to single you out to steal your identity can probably do so.  However, because most businesses are required to check a person’s credit history before opening a new account in their name, the credit freeze law is a great resource to lessen your chances of becoming a victim.

If you do become a victim, it is extremely important that you act immediately to stop the thief’s further use of your identity. Report the crime to the police. Call your bank and credit card issuers. Contact the fraud unit of the three major credit reporting companies. Request that a “fraud alert” be placed in your file, as well as a victim’s statement asking that creditors call you before opening any new accounts or changing your existing accounts.