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Capping three years of effort by AARP Georgia and other supporters, Gov. Sonny Purdue signed on May 13 a credit-freeze bill that allows consumers to block access to their credit reports. Because potential creditors must review a credit report before approving new accounts, a credit freeze effectively blocks some types of identity theft.

Once a person’s identity is stolen, thieves often use the information to seek new credit in the victim’s name, to open a bank account and write invalid checks in the victim’s name or to apply for government benefits in the victim’s name.

“There are lots of reports of stolen information like Social Security and credit card numbers,” said state Rep. Tommy Benton, R-Jefferson, a primary sponsor of the legislation. “If you know your credit report is frozen, you can sleep a little better.”

More than 8,000 Georgians were the victims of identity theft in 2006, according to the Federal Trade Commission, with the state ranking seventh nationally in the number of residents per 100,000 that were robbed of their identity.

AARP Georgia worked closely with legislators and other key advocates over the last three years to provide education and muster support for the bill.

“Many states across the nation have similar laws, and we wanted to give the same types of protection to all Georgians,” said Ken Mitchell, state director of AARP Georgia. “It may have taken three years, but our persistence paid off. This is a good bill, which extends vital, new protection to everyone with a credit card or a credit history.”

How the New Law Works
Beginning on Aug. 1, Georgia consumers will be able to request a credit freeze from credit reporting agencies that can only be lifted with approval from the consumer. Consumers will be charged $3 for each transaction. The credit freeze is free to all Georgians 65 and older.

A consumer may place a security freeze on their credit report by making a request in writing by certified mail to a consumer credit reporting agency. After receiving the letter, the agency has three business days to put a credit freeze in place, and 10 business days to send an acknowledgement to the customer. The agency also will need to send an ID number or password to use when making changes to the credit-freeze status.

The new law requires that credit reporting agencies will need to provide consumers with an Internet-based method and a toll-free telephone number that can be used to place a credit freeze, temporarily lift a freeze, or completely remove one by Aug. 1.

One proviso in the new law allows for a credit freeze to be temporarily lifted within 15 minutes after the request and payment are received by phone or electronic notification by the customer. The customer will need to supply proper identification, including their ID number or password, during normal business hours.

While there are dozens of regional and industry-specific credit reporting agencies, consumers often deal with the “Big Three” national agencies: Equifax, Experion and TransUnion. Many consumers are in all three data banks and will want to coordinate credit freezes with all of them, driving up costs.

According to Kathy Floyd, associate state director for advocacy for AARP Georgia, the price was a major sticking point. “The bureaus wanted to charge $10 apiece but that would have priced some people out of the market, or just made it not worth the cost.” AARP Georgia successfully worked to lower the proposed fee to $3.

In addition to Rep. Benton, AARP Georgia wishes to thank Representatives Rich Golick, R-Smyrna; Rob Teilhet, D-Smyrna; and Senator Bill Hamrick, R-Carrollton, for their work and leadership on this issue.

Look for more information about taking advantage of the new law’s provisions here on the AARP Georgia website July 20.