Consumer - Credit Report Security Freeze
- What is a credit report security freeze?
- Who is eligible for a credit report freeze?
- Why might I decide to place a freeze on my credit report?
- What are the downsides or limits of placing a freeze on my credit report?
- If I decide to do so, how do I place a freeze on my credit report?
- Do I have to contact all 3 major credit reporting agencies (Equifax, Experian, TransUnion) or just one?
- How do I temporarily lift the freeze once it is placed on my credit report?
- How do I permanently remove the freeze once it is placed on my credit report?
- How much does it cost to place, lift, or remove a freeze on my credit report?
- Can I still access my credit report even though there is a freeze?
- Will my credit report ever be provided to another party even though I have a credit freeze?
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What is a credit report security freeze?
A credit report security freeze generally allows a consumer to
block access to his or her credit report by third parties (such as credit
lenders or other companies) who are not exempted under law.
Who is eligible for a credit report freeze?
All Virginians have a right to obtain a freeze on their credit
report from the individual credit reporting agencies.
Why might I decide to place a freeze on my credit report?
Unlike many identity theft protection methods which are only
effective after identity theft has occurred, credit report freezes can help
protect consumers from identity theft before it happens.
Credit report freezes are designed to prevent thieves from opening
new accounts in the consumer’s name. Businesses generally do
not extend credit to an individual without first checking his or her credit
report. Since a freeze blocks third parties from accessing a consumer’s
credit report, it makes it very difficult for a potential identity
thief to fraudulently open a new account in your name.
What are the downsides or limits of placing a freeze on my credit report?
Freezes may delay, interfere with, or prohibit the timely approval
of new loans, credit, mortgages, government services or payments,
insurance, rental housing, employment, investments, licenses,
cellular phone service, utility service, digital signature, Internet
credit card transactions, and extension of in-store credit.
Since there may be a delay between the receipt of your request
and the actual lift or removal, it is important to plan ahead
to ensure that your credit report is accessible for purchases
and other significant transactions.
In addition, a freeze will not prevent a thief from fraudulently
using your existing credit card or bank accounts. Therefore, you should
continue to regularly check your monthly bank account and credit
card statements for signs of any suspicious activity.
If I decide to do so, how do I place a freeze on
my credit report?
Send a written request via certified mail or by using another
method authorized by the credit reporting agency. The “Security
Freeze” law does not specify what information the credit reporting
agencies may require to place a freeze on your credit reports. Thus,
each credit reporting agency has its own procedures in place. Check
the individual agency’s website for specific instructions on how to
obtain a freeze.
Equifax Experian TransUnion
Do I have to contact all 3 major credit reporting agencies (Equifax,
Experian, TransUnion) or just one?
You must contact each credit reporting agency with which you
wish to place a freeze.
How do I temporarily lift the freeze once it is placed on my credit
report?
A temporary lift allows the credit reporting agency to release
your credit report to a specified party (specific third party
lift) or to all third parties with a permissible purpose for a specified
period of time (global lift).
To obtain a temporary lift, you must contact the credit reporting
agency with which you placed the freeze and provide proper identification
and the unique personal identification number (PIN) or password
assigned to you. You also must indicate the amount of time that you
would like the freeze to be lifted or the specific party that can access
the report. Credit reporting agencies generally are required to be
able to lift a freeze within 15 minutes of their receipt of an
electronic request.
How do I permanently remove the freeze once it is placed on my credit
report?
You must contact each credit reporting agency with which you
placed the freeze by written request or other authorized method. You
will need your PIN or password when placing the request. It may take
up to 3 days to remove the freeze.
How much does it cost to place, lift, or remove a freeze on my credit
report?
If you are a victim of identity theft, the freeze may be placed,
lifted, or removed for free.
If you are not a victim of identity theft, credit reporting agencies
are permitted by statute to charge you a fee to place the security
freeze. The “Security
Freeze” law does not authorize credit reporting agencies to charge
fees for temporary lifts or removals of security freezes.
Can I still access my credit report even though there is a freeze?
You may still get your free annual credit report or purchase
a copy of your report or score. Placing the freeze does not affect
your ability to obtain the report and it does not affect your credit score. Obtaining
the free annual report is one way to find out if you have become the victim
of identity theft. You can obtain your free annual report by going
to: https://www.annualcreditreport.com.
Will my credit report ever be provided to another party even though
I have a credit freeze?
Yes, there are certain exceptions provided under law. These include:
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Companies with which you have an existing account (e.g., your mortgage, credit card, or cell phone company, or their collection agencies)
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Any person or entity using the report with your permission to extend credit
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State or local agencies, law enforcement agencies, trial courts, or private collection agencies acting under a court order, warrant, or subpoena
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Child support agencies
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The Commonwealth when investigating fraud, collecting delinquent taxes or unpaid court orders, or performing other statutory responsibilities
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Pre or post screening under the Fair Credit Reporting Act
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Any person or entity monitoring your credit file with your permission
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Any person or entity providing you a copy of the report upon your request
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Any person or entity using the information to set or adjust a rate, adjust a claim, or underwrite for insurance purposes
-
Any employer in connection with any application for employment
More Information:
Virginia Code §§ 59.1-444.1 and 59.1-444.2
Annual Credit Report.com
Fair Credit Reporting Act