New law protects consumers from credit fraud

by state Rep. Kathy Manderino, D-Phila./Montgomery

There’s good news on the front to fight identity theft. A recently enacted law will help Pennsylvanians protect themselves from credit fraud by letting them control access to their credit reports.

The Credit Reporting Agency Law (Act 163 of 2006) allows Pennsylvania residents to place and remove security freezes on the credit reports maintained by the three national credit bureaus -- TransUnion, Experian and Equifax. The freeze locks access to a person’s credit report and credit score to prevent thieves from applying for new lines of credit or loans in that person’s name.

Consumers can use a Personal Identification Number, or PIN, to “thaw,” or unlock, access to the credit file to allow certain creditors to see their files when they are actively seeking credit, such as for a home or auto loan. When they’re not actively pursuing a line of credit, the freeze prevents anyone else from reviewing or getting credit in their name.

Under the new law, identity theft victims who file police reports and senior citizens 65 or older will not have to pay for a freeze. For others, credit bureaus are allowed to charge a nominal fee for a freeze or thaw.

The security freeze remains in effect until the consumer requests its removal or until seven years after the freeze is placed on the consumer’s report, whichever occurs first.

To place a freeze on your credit report, contact the three major credit bureaus: Equifax, 800-525-6285; Experian, 888-397-3742; and TransUnion, 800-680-7289.

The ability to freeze credit reports is an effective tool to help consumers protect themselves from the often devastating consequences of identity theft. This new law provides an important safety net for Pennsylvania residents.

###