Act Now to Protect Your Credit
By: States: Indiana Source: AARP.org Date Posted: 2007-08-24 15:42:57.640980-04:00
You've heard about it, you've waited for it, and now it's here.
Indiana's "security freeze" law takes effect Sept. 1, giving Hoosier consumers an unparalleled opportunity to shield their credit reports from prying eyes. We've included all the instructions below. Before you start, though, here's the skinny on why it's important.
Every time an identity thief steals your Social Security number through computer hacking or other means, the thief can gain access to your credit report. That lets him open new lines of credit in your name or boost existing lines of credit.
Before you know it, you're either on the hook for a slew of bills, or you're engulfed in paperwork to clear your name and credit.
The annual cost to businesses and consumers is about $16 billion, according to Consumers Union, a nationally respected consumer advocacy group.
That's why AARP Indiana championed the security freeze as a consumer tool to block the thieves. Lawmakers listened, in part because they know that AARP Indiana represents more than 866,000 Hoosiers age 50+.
Now it's your turn to act.
Here's how:
- Starting now, you can send the three major credit reporting agencies a letter telling them to protect ("freeze") your credit report and credit score.
- Within 10 days of your written request, the agencies will mail you a four-digit PIN (personal identification number). You can use the PIN any time you want to apply for new credit or access your credit report. But without the PIN, an identity thief won't be able to access your credit report.
- By law, placing a security freeze will not hurt your credit rating.
- Also by law, this is a free service. Indiana is the only state to make this service free for everyone, even people who have not been victims of identity theft.
That makes Indiana a leader.
The law will get even better in 2009. By then, consumers will be able to request a security freeze by telephone or e-mail. You'll also be able to "thaw" the freeze by phone or e-mail whenever you want to release your credit report to a business or other organization.
Until then, written requests are necessary.
Your letters must include your full name, address, Social Security number, and date of birth. You also must include proof of current address, such as a phone or utility bill, and a photocopy of a government-issued ID card. Examples include a driver's license or military identification. Do not send copies of your Social Security card. Anyone who's moved within the past five years also must include addresses from that period.
Make sure you send a letter to all three credit reporting agencies at these addresses:
Equifax Security Freeze
PO Box 105788
Atlanta, GA 30348
Experian Security Freeze
PO Box 9554
Allen, TX 75013
TransUnion Security Freeze
PO Box 6790
Fullerton, CA 92834-6790
Finally, please tell AARP Indiana about your successes or any problems you encounter. We are here to listen. Call Martin DeAgostino at (866) 448-3618 toll-free, or by e-mail.
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