New Law Empowers Consumers to Fight Identity Theft
By: Source: AARP.org Date Posted: 2007-08-13 13:25:07.109602-04:00
A new state law takes aim at identity thieves by giving Nebraska consumers the right to place a security freeze on their credit reports. Beginning Sept. 1, state residents can choose to lock up their personal financial information and prevent thieves from using credit information to obtain loans or open new accounts.
In this year's session, the Nebraska Legislature and Gov. Dave Heineman approved legislation allowing consumers to place the freeze on their credit reports. A freeze prohibits the nation's three major credit reporting agencies from releasing the information without the consumer's express authorization. The measure stops an identity thief from gaining access to credit information that could be used to open credit accounts in the victim's name.
AARP State President Sunny Andrews, himself a victim of credit card fraud in recent years, said the freeze is an important step forward for consumers. "All Nebraskans need a way to proactively shield themselves from identity theft, which is what a security freeze does," he said.
The Identity Theft Action Council of Nebraska and AARP pushed strongly for the security freeze. Sen. Mick Mines of Blair first introduced the measure, which was later attached to Legislative Bill (LB) 674. The bill was sponsored by Sen. Steve Lathrop (Omaha) and cosponsored by Sen. Kent Rogert (Tekamah) and Sen. Tom White (Omaha). Nebraska is among 35 states to pass security freeze legislation.
Some of the bill's consumer protections were weakened by opponents, Andrews said, but AARP will press for changes in the future to give the law more teeth. "For instance, we support lowering the maximum $15 fee to place a freeze to make this option widely accessible to consumers," he explained.
LB 674 also attempts to curb identity theft by restricting an employer's use of Social Security numbers, a provision praised by Jaimee Napp, founder of the Identity Theft Action Council of Nebraska. Napp's name, birth date and Social Security number were stolen and used to apply for credit cards. The person accused of the crime was a manager at her former employer.
"Thanks to LB 674, the serious problem of identity theft is now on our legislators' radar. We're light years from where we were one year ago," Napp said.
Fast Facts about Nebraska's Security Freeze
- Protects consumers who place a freeze with the three national credit reporting agencies: Equifax, Experian and TransUnion. Nebraskans must make the request via a certified letter to the agencies. Find sample letters online.
- Consumers can also lift the freeze - temporarily or permanently - when applying for credit or other services.
- Placing a freeze costs up to $15 per agency. It is free for minors and those who have already been the victim of identity theft and have filed a police report about the crime.
- If a consumer wanted more credit, the bureaus would have to lift the freeze within three days of a consumer's request. Starting Jan 1, 2009, that timeline is shortened to 15 minutes.
- Under a freeze, the credit reporting agencies must send a written confirmation to the consumer before changing their name, date of birth, Social Security number or address on the account.
- A security freeze is set to automatically expire seven years after the date it takes effect.
Find further guidance about placing a freeze on your personal credit information online, or contact the Nebraska Attorney General's Office at 1-800-727-6432 toll free.
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