The New York State Consumer Protection Board just announced New Yorkers can request that a security freeze be placed on their credit records. A security freeze can aid in the prevention of identity theft by thwarting someone from opening credit cards or lines of credit in another person's name.
"This new law will give New Yorkers a way to help prevent identity theft because it will block access to your credit history," said the board's Chairwoman Teresa Santiago in a news release. "Blocking access to your credit files, in most cases, will prevent someone from using your name and credit information to establish a new line of credit.
"When phony credit accounts are created -- and the subsequent bills are not paid -- it can ruin your credit history, resulting in harassing calls from collection companies and making it extremely difficult for you to buy a home, borrow money or obtain a credit card," Santiago said.
A security freeze can only be obtained by sending a letter by certified mail or overnight courier to each of three credit reporting agencies: Trans Union, Experian and Equifax. The service is free if a consumer is making this request for the first time. However, a $5 fee can be charged for subsequent requests, as well as to remove or temporarily lift a security freeze.
No fees are charged to victims of identity theft provided they submit a signed police report or an ID Theft Victim's affidavit obtained from the Federal Trade Commission.
The freeze will take effect within five business days after the consumer's letter is received. Within 10 days, the credit bureaus must send a letter to the consumer informing them that the security freeze is in place and giving them instructions on how they can remove or temporarily "thaw" this credit freeze. The letter will also include a personal identification number to be used when the consumer calls a credit bureau in the future.
The freeze can be temporarily lifted for a specific period of time or for a specific company or creditor. To do this, you must write or call the credit bureaus using the personal identification number provided by them and request a temporarily lift of the security freeze from your records. This "thaw" will cost $5 and the credit bureaus will have three days to carry out this request. Consumers should plan ahead if they want to borrow money, finance a purchase or open a new credit card.
Consumers can use one of the sample letters available online at www.nysconsumer.gov.
