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Security Freeze
Identity theft is a growing concern for everyone. If you've been a victim of identity theft or are just concerned with the risk that you may become a victim, you now have a powerful tool to protect yourself. As of November 1, 2006 all New Yorkers now have the ability to place a Security Freeze on their credit files.
A Security Freeze prevents any company or individual access to your credit report. Once you do this no one, not even someone you authorize, can gain access to your report. In order for your report to be available, you will need to remove the freeze. By freezing your credit file you can feel confident in the knowledge that no one can use your name and personal information in order to borrow money.
You need to be aware that there are consequences in doing this. So be sure you consider them before you place the freeze. Companies use credit files to create lists of potential customers for their products or services. With your report frozen, you will not be a target for these offers. This may be considered a good thing but there are times that you are contacted with an offer you may not know is available to you. A good example of this would be auto insurance. Insurance companies have found a correlation between good drivers and high credit scores. They will routinely solicit individuals with high credit scores with offers of low car insurance premiums. Without receiving this offer you may not have thought about checking to see that you are paying the lowest premium on your car insurance. The same thing occurs with low interest rate credit cards. Banks offering their lowest interest rate cards will use lists of individuals with
high credit scores as their primary people to contact.
Most importantly, when you are applying for credit you will need to release the freeze on your report before applying or the lender will not be able to have access to the information needed to approve your request. You also need to remember that your credit report is reviewed for many things. When applying for a mortgage or a credit card you would naturally expect your credit profile would need to be accessed. Less obvious times are when pricing insurance policies, getting a cell phone, renting an apartment or even applying for a job. The number of times your credit report is accessed during the course of everyday life is growing everyday. Putting a freeze on your credit file will require you to plan in advance many things that you've been accustomed to doing on the spur of the moment. It can take up to three business days from the time you request the freeze to be removed for it to happen.
This is the procedure to follow as per the New York State Attorney General:
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Send a certified letter, with proper identification, to each of the three nationwide credit reporting agencies: TransUnion, Experian and Equifax (addresses are listed below).
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Allow five business days upon receipt of your request for the credit reporting agencies to place a Security Freeze on your credit profile.
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Expect a password or Personal Identification Number (PIN) in a confirmation letter from each of the credit reporting agencies which must be sent within 10 days of placing the Security Freeze.
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Use the password or PIN to temporarily lift or permanently remove your Security Freeze.
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Expect a credit reporting agency to remove or lift the Security Freeze for a party to receive a report within three business days of your request provided you submit proper identification, your password or PIN, and payment of any applicable fee.
A consumer reporting agency is permitted to charge consumers who are not victims of identity theft a fee up to $5.00 for the removal or lifting of a Security Freeze, the second or subsequent placement of a Security Freeze or the replacement of a lost or stolen password or PIN.
If you are a victim of identity theft you need to submit a valid copy of a police report or an FTC ID Theft Affidavit. This prevents the credit agency from charging you to place the freeze.
Mailing Addresses:
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TransUnion Fraud Assistance Department - P.O. Box 6790, Fullerton, CA 92834
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Equifax Security Freeze - P.O. Box 105788, Atlanta, Georgia 30348
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Experian Security Freeze - P.O. Box 9554, Allen, Texas 75013
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