Vetoed Arkansas House measure gets new life
A consumer-protection bill that was vetoed this spring has found new life, albeit not through legislation. House Bill 2780 by Rep. Dawn Creekmore (D-East End) would have allowed consumers to initiate their own security freezes on their credit reports in case of identity theft or similar crime. It was approved in both chambers but was eventually vetoed by Gov. Mike Beebe on the basis that the bill allowed any consumer, not just victims of identity theft, to place a freeze on their credit report.
While Creekmore's bill has continued to be studied by lawmakers during the interim before the next legislative session, the goal of the legislation may come to fruition according to recent pronouncements by the nation's three primary credit bureaus: TransUnion, Experian, and Equifax.
By November 1, consumers in all 50 states can freeze access to their credit files. Current law in Arkansas allows only current victims of identity theft to take such action. Creekmore's effort would have allowed all consumers to do so at any time - and the decisions by the three major credit bureaus now allow that. Currently, 35 states have a security-freeze law available to all consumers.
According to the companies' news releases, TransUnion and Experian will provide security freezes for no charge to victims of identity theft and will charge $10 for freezes initiated by others. Equifax hadn't yet announced what, if any, that it will charge. However, these bureaus will be able to promulgate the rules on both a freeze and a "thaw" of one's credit account (a "thaw" is a temporary lift on a credit account so that the consumer can make a purchase that may require a credit check). This means there could be a short waiting period before a request is approved.
When a security freeze is in place at all three major credit bureaus, an identity thief cannot open a new account because the potential creditor or seller of services will not be able to check the credit file. When the consumer is applying for credit, he or she can lift the freeze temporarily using a PIN so legitimate applications for credit or services can be processed.
Rep. Creekmore is currently working on legislation to introduce during the next session that will make the security freeze consumer friendly to include such provisions as (1) allowing Arkansans to initiate the freeze by regular mail, phone or through a secure electronic method, (2) allowing Arkansans to lift or thaw the freeze within 15 minutes at no additional fee, and (3) putting a cap on the charge to consumers at no more than $5 to initiate the freeze. Creekmore also wants to have this protection available to senior citizens and active military at no charge.
While Creekmore's bill has continued to be studied by lawmakers during the interim before the next legislative session, the goal of the legislation may come to fruition according to recent pronouncements by the nation's three primary credit bureaus: TransUnion, Experian, and Equifax.
By November 1, consumers in all 50 states can freeze access to their credit files. Current law in Arkansas allows only current victims of identity theft to take such action. Creekmore's effort would have allowed all consumers to do so at any time - and the decisions by the three major credit bureaus now allow that. Currently, 35 states have a security-freeze law available to all consumers.
According to the companies' news releases, TransUnion and Experian will provide security freezes for no charge to victims of identity theft and will charge $10 for freezes initiated by others. Equifax hadn't yet announced what, if any, that it will charge. However, these bureaus will be able to promulgate the rules on both a freeze and a "thaw" of one's credit account (a "thaw" is a temporary lift on a credit account so that the consumer can make a purchase that may require a credit check). This means there could be a short waiting period before a request is approved.
When a security freeze is in place at all three major credit bureaus, an identity thief cannot open a new account because the potential creditor or seller of services will not be able to check the credit file. When the consumer is applying for credit, he or she can lift the freeze temporarily using a PIN so legitimate applications for credit or services can be processed.
Rep. Creekmore is currently working on legislation to introduce during the next session that will make the security freeze consumer friendly to include such provisions as (1) allowing Arkansans to initiate the freeze by regular mail, phone or through a secure electronic method, (2) allowing Arkansans to lift or thaw the freeze within 15 minutes at no additional fee, and (3) putting a cap on the charge to consumers at no more than $5 to initiate the freeze. Creekmore also wants to have this protection available to senior citizens and active military at no charge.
posted by Steve Harrelson @ 10/22/2007 01:31:00 PM | Permalink |
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