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Freezing Credit Bureau Files

My state (PA) has recently passed a law allowing consumers to put a freeze on their credit bureau files. I initially welcomed this law, but now that I look into it I am not sure it was implemented in the best possible way.

The law allows a credit bureau to charge a fee up to $10 to put the freeze in place. So if you do this with each of the three major bureaus for yourself and your spouse, that's $60. If you want to remove the freeze temporarily, a bureau can charge up to $10 to do that. When you reinstate the freeze, that's another $60, and even if you never ask to have the freeze removed, it has a lifetime of seven years.

So I am wondering, for purposes of avoiding identity theft - in particular someone else applying for credit in your name - whether it is better to do the freeze or just to subscribe to a credit monitoring service. I don't plan to apply for credit any time soon, but it's possible I might want a different credit card some time in the future, and credit reports are checked for other things like applying for a new cell phone service, insurance, etc. Another option is just getting a free credit report once a year from each bureau.

Also, does anyone in another state know how the credit bureaus are actually handling the freezes, i.e., what are the actual fees and how convenient is it to do (web site, letter, etc.).

Thanks.

Reply to
pixel_a_ted
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What exactly is meant by "freeze" here?

Instead of spending this money on credit security systems and this so-called "freeze," I suggest avoiding the need for personal credit.

The NY Times the other week ran quite an article purporting that the credit industry is more out to make buck with all these alleged protection plans than it is interested in actually protecting. The article even suggested it does not pay them to provide too much protection.

Reply to
Elle

That seems to be typical (except the 7 year limit). See

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The good news is that you only have to wait until you're 65, and then it's free (in Pa. :-)

I recently checked into this for a relative in NY. Here's the NY page:

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Essentially (in NY) you have to write to each of the credit reporting agencies separately. Of course, each one has different info that it wants. The NY page gives links at the bottom to "freeze" pages at each agency. These pages in turn give pretty complete info for every state.

Mark Freeland snipped-for-privacy@sbcglobal.net

Reply to
Mark Freeland

You can have a free fraud alert flag put on your credit bureau files:

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grantors are supposed to honor the fraud alert flag bymaking it much more difficult to open a new account in your name.

Reply to
John Richards

And what about your nosy neighbors sending in your pre-approved credit card forms? Freezing your credit score may prevent this.

I'm not one to use credit score either. I use credit cards but have them paid off in 7 days, buy cars with cash etc. The only debt I will prolly apply for in my life will be a mortgage at this point.

Of course landlords do credit checks now. in fact what reputable landlord outside of family or personal reference does not do a credit check? And so insurance companies. When did you sign a new policy with a credit bureau check? And so do some employers......

Do you pay alimony to a former spouse or child benefits? credit bureau checks........ And of course anyone who wants a margin account or to short term borrow money to top up tax deferred investments.. Again to me personally I could care less about credit score except for potentially insurance and most certainly a mortgage. But to others I can understand the need to protect their credit bureau score.

And yes the credit bureau are making a fast buck "protecting" you but what is the alternative?

Reply to
The Henchman

Yes, and I have done that in the past. Previously, once a fraud alert was placed in your file it was in effect for a number of years (the exact time varied with the credit bureau). Now, they are only in effect for 90 days. Considering the hassle to contact these bureaus, the fact that there are three of them and also that you and your spouse might want to have the fraud alert done, it becomes a big pain. Currently, to have the alert stick for a 7-year period, you have to prove that you are already a victim of fraud.

Reply to
pixel_a_ted

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