Why Consumers Need a Nationwide Credit Freeze NOW

What do a shoe retailer, an online discount broker, and a popular clothing retailer all have in common? All three - DSW Shoe Warehouse, Ameritrade, and Polo Ralph Lauren - sustained breaches to their customers' accounts. Unfortunately, these three are not alone when it comes to security breaches. CitiFinancial, Bank of America, LexisNexis and other companies have also experienced similar events.

Over 46 million Americans have had personal records containing credit card numbers, bank account information, and social security numbers lost or stolen during the first six months of 2005.

Having even just one piece of personal information is sometimes all that an identity thief needs in order to wreak havoc to your credit profile. Many people falsely believe that an ID thief uses only the stolen credit cards to go on their shopping sprees. The truth is ID thieves use your stolen information to open new accounts for credit, cars, loans, mobile phones and more. Most victims won't know there's a problem until they've been turned down for credit or begin receiving calls from creditors and collection agencies about the unpaid bills.

So, what can you do to guard your identity from criminals? Along with vigorously protecting your social security number, using a shredder to destroy credit card offers, and monitoring your credit report regularly, you may also be able to use a new line of defense against ID thieves - placing a "freeze" on your credit files.

Placing a freeze on your credit files with the three major credit reporting agencies - Experian, TransUnion, and Equifax - shuts out potential lenders from accessing your credit files in order to make you an offer for credit. When applying for new credit accounts or loans, you would use a special password or PIN to "thaw" your credit files, a process that takes a few days. The credit bureaus charge around $10 for each freeze or thaw as allowed by law.

A credit freeze protects your data since the lender can't check your profile in order to approve any new credit. Unfortunately, credit freezes are currently available only to consumers in California, Colorado, Connecticut, Illinois, Louisiana, Maine, Nevada, Texas, Vermont, and Washington.

Congress is examining laws to make credit freezes available nationwide, however they are facing some strong opposition. And guess where it's coming from? The credit bureaus and data clearinghouses! They make money every time they sell your information to banks, mortgage brokers, car dealerships and other retailers.

The time to act is NOW. If you live in a state that doesn't offer you, the consumer, the right to freeze your credit files, contact your state legislators to let them know that YOU WANT TO CONTROL who can access your personal and financial data. Names and contact information for your Senators and Representatives can be found at www.senate.gov and www.house.gov. Write or e-mail them and tell them you want control of your personal data. After all, it's your identity and your finances at stake!

© 2005, http://www.yourfreecreditreportnow.com

Author: James H. Dimmitt

James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book "IDENTITY THEFT- How To Avoid Becoming the Next Victim!" and other free bonuses by visiting http://www.yourfreecreditreportnow.com

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Credit Information:

Related Articles

How To Establish Great Credit
Building a good credit history is important. If you have no reported credit history, it may take time to establish your first credit account.
Understanding the Function of Credit
What is Credit?Credit is the backbone and the engine behind the workings of the economy. Credit simply allows individuals and companies to borrow funds in good faith and pay it back over a specified time frame.
Credit Card Rates - Negotiating Rates with Your Credit Card Company
Ok, let's face it, everybody hates high credit card rates, and they drain hard earned money out of your wallet. As a valued consumer, it is apparent that you learn how to negotiate to get the absolute best rate that you possibly can.
Bad Checks, Bounced Checks, & NSF Checks
Negotiable instruments like checks and drafts have become an indispensable part of any business transaction today. As a result, it has become increasingly important to safeguard a business against financial losses arising from the receipt of fraudulent or bad checks.
Establishing Credit - What You Need To Know Part 1
Establishing credit is one of the most important things you can do in order to add stability to your financial record and dramatically increase your ability to borrow necessary funds in order to purchase a new home, new car or even pay for college expenses. Unfortunately credit has two sides to it that consumers can exploit.
10 Signs You May Need Credit Counseling
Debt management programs can be of real help for people that discover they cannot face their debts. At first, they will attempt to solve the situation all by themselves by cutting down on spending and keeping a close eye on accounts.
Identity Theft - Who Would Want Mine?
With all my bills who would possibly want my credit? Let them steal my identity and pay my bills! Unfortunately, that's not the way it works. Many of us mistakenly believe that identity thieves hit only the wealthy.
Dont Trade Your Future for Todays DooDads
"Easy Low Down Monthly Payment," "Buy Now Pay Later," "You Deserve the Car Today and We Can Finance It for You," & "Spend Today, 0% APR until Next Year!" We see those statements above every where today, on TV commercials, car dealership, banks and magazines. Those statements have put a lot of people into a financial disaster, because the statements make a lot of people believe that acquiring bad debts is an ok thing to do.
How to Improve Your Credit Rating
So you got into debt, had problems but you got yourself back on your feet through hard work and sacrifice and how are you rewarded? A Bad Credit Rating.You would be forgiven for thinking thats not fair and why did you bother sorting yourself out if your hands are still tied when it comes to applying for anything financial? There are ways to improve your credit rating and get back on track completely.
Bad Credit? No Credit? Yeah, Its a Problem.
Many companies use the slogan "Bad Credit? No Credit? No Problem!" The truth is that it is in fact a problem and there is no easy way to correct it. It takes a lot of time and effort to obtain credit when you do not have any and even longer to fix bad credit.
What is Credit Counselling?
Ever wondered what is Credit Counselling? There are occasions when you might encounter a financial situation that is beyond your scope which is when a session with a credit counsellor could be beneficial.If you're not disciplined enough to create a workable budget and stick to it, can't work out a repayment plan with your creditors, or can't keep track of mounting bills, consider contacting a credit counselling organisation.
Do you Know the Benefits of Checking your Credit Report?
Do you know why you should check your credit report?Of course you do, because you have undoubtedly experienced one working in your life!No matter where you roam, your credit report follows you through life, updating all aspects of your life: your employment, where you live, your opened credit accounts, your closed accounts, your payment history, and even public records on you.In this country, a good credit history brings you benefits of all kinds--a home mortgage, an apartment lease, an auto loan, or even more credit--with ease.
Top 5 Credit Misconceptions
We have all heard the rumors?from neighbors, relatives or friends. There are a wide variety of myths floating around about what you should and shouldn't do to improve your credit reports and credit scores.
Online, Phone, U.S. Mail or In-Person: Where is Your Credit Card and Personal Identify Safest?
Identity theft is the fastest growing crime according to the Federal Trade Commission (FTC). It occurs when someone takes a piece of your personal information and uses it without your knowledge to commit fraud or theft.
Bank Robbery Growing In U.S.
Bank robbery has grown to become a huge problem in the United States but I am not talking about people robbing banks. I am talking about banks robbing people.
How did a Thief get my Name? Don't be a Victim of Identity Theft
How do these people get my name? If you have a credit card, your name is sold to third parties, if you do not want this to happen, you must contact your credit card companies to inform them that you do not want your information sold. Check the privacy notice that comes with your bill.
Credit Suicide
Few things influence the home buying process more than your credit. I like how Clark Howard refers to the three credit repositories as, "the three screw-ups".
Do You Want to Get a New Credit Card at a Great Rate?
1) Do your homework. Applying for and getting approved for a credit card is nothing more than legwork.
Beware the Shopping Mall Monster
Like me, you've probably been offered a fair old number of these by now..
Credit Cards for Home Business
It is wise for you to have a company credit card like a VISA card. How can you find the least expensive bank card for your business? You may decide to use a VISA card from your local bank.