Arizona may be
the next state to implement a credit file freeze policy. About a dozen
states, including California, Texas, Vermont, New Jersey, Illinois, Nevada and Maine,
have already adopted this identity theft stopping method. A "file
freeze" allows a consumer who is worried about identity theft to
essentially lock their credit files from any access of review. When a
customer’s credit data is frozen, lenders, creditors and credit report
providers must obtain special permission before reviewing their credit files.
A "file freeze" goes far beyond a basic "fraud alert."
Fraud alerts are placed on your credit report for an initial 90-day period when
you suspect identity theft. During this period, creditors and lenders
accessing your data are warned about your fraud status and asked to take extra
steps to verify your identity. Once you can document your identity theft case,
this alert is extended for 7 years and your name is removed from pre-approved
credit offer lists.
In contrast, a file freeze prohibits your credit from being reviewed without
your specific permission. When a consumer with frozen credit wants to apply for
a new account, they must obtain a special identification number for the
creditor at a cost between $5-15. File freezes also make it harder for a
consumer to check their own credit
reports and credit scores online or to receive instant approval for loans
and credit cards. Residents of states that allow this action can request a file
freeze by calling the credit
bureaus’ fraud hotlines.
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