Legislature Cuts Fees to Freeze Credit Reports

By: State: Nebraska | Source: AARP.org

Curbing identity theft just became cheaper and easier under Nebraska's security freeze law.

Since 2007, Nebraska consumers have had the right to place a security freeze on their credit reports. With a few simple steps, state residents can choose to lock up their personal financial data and prevent thieves from using credit information to obtain loans or open new accounts.

But with fees totaling $45 to place a security freeze at all three national credit reporting bureaus, few people appear to be taking these precautions.

"The cost has simply been out of reach for too many Nebraskans, limiting the effectiveness of the law," said AARP State President Sunny Andrews.

Aiming to fix the problem, the Legislature and Gov. Dave Heineman recently approved LB 177, which strengthens consumer protections established in the original 2007 law. The legislation was sponsored by state Sen. Steve Lathrop of Omaha.

Most importantly, fees for security freezes have been dropped from $15 to $3 per credit reporting agency. That means a consumer can freeze their credit reports with the three credit reporting bureaus for just $9. The bill also eliminated an automatic 7-year expiration date for security freezes, leaving that decision up to the consumer about when to lift or cancel a freeze.

The successful measure was among AARP Nebraska's top legislative priorities in the 2009 session. Andrews, himself a victim of identity theft, praised lawmakers for enacting changes to make the security freeze work for consumers.

"Our hope is that the improvements will encourage more Nebraskans to freeze their credit reports and gain more control over how their personal information is used," he said. "Everyone needs a way to proactively shield themselves from identity theft, which is what a security freeze does."

Nebraska is now ranked in the top five states offering the lowest security freeze fees in the nation, according to Jaimee Napp, executive director of the Identity Theft Action Council of Nebraska. Montana and Georgia also charge $3 per credit reporting agency, while Indiana and South Carolina charge nothing.

"Freezing your credit report is an extremely easy process that can save a tremendous amount of grief," said Napp, whose birth date and Social Security number were used fraudulently to apply for credit cards.

For more information about how to place a security freeze on your credit, visit www.idtheftne.org.