Identity theft is a major concern for many people. Once a thief has possession of your personal information, he has the ability to open accounts and borrow in your name –leaving you with the bill and credit damage. Beginning September 1, 2008 Washington State will enable consumers to “freeze” their credit file in order to fight this type of crime. Doing so will prevent credit bureaus from releasing your credit report and score to new lenders and other businesses, which can stop fraud from occurring.

How it protects against fraud

In most cases, financial institutions will need to see your credit report and score to consider you as a customer. However, if your credit file is frozen, they can’t access it and won’t be able to approve a new loan or credit line. Insurance companies, employers, and landlords also assess credit reports, so they too will be prevented from checking your file. As long as the credit file freeze (sometimes called a security freeze) is in place, thieves will have a very hard time opening fraudulent accounts.

Credit file freezes are only effective against the type of fraud where a thief tries to open new accounts. If he has possession of your existing credit cards or account information, he may be able to use them. Additionally, some businesses don’t check credit reports at all. In that case, they may grant a loan or provide a service in your name, as long as the thief can provide them with your identifying data.

How to add and remove the freeze

As of September 1, 2008 Washington residents who have been victims of identity theft or are 65 and older will be eligible to place the freeze for free.  Others will still be able to have their reports frozen, but may be charged up to $10 per reporting agency. If you can and you want to take this action, submit a written request to the bureaus, including your name, address, and Social Security Number. If you are a victim of identity theft and have filed a police report, include a copy of the paperwork too – you may be able to avoid having to pay the fee. If you do need to pay though, include your credit card number with the expiration date. 

Once the request is received and processed, the credit bureau will send you a private personal identification number that you can use to lift the freeze, as well as a phone number to call. You will need to lift it before applying for credit or if you want a potential employer, landlord, or other business to check your credit. Depending on your state, there may be a fee to lift the freeze and another to add it again, though there is no cost to have it removed permanently.