The CFPB cautions against confusing freezes with credit locks
A new federal law has made credit freezes and year-long fraud alerts free, with a provision fraud alters for those in the military, according to an announcement by the Consumer Financial Protection Bureau.
Credit freezes, also called security freezes, allows an individual to restrict access to his credit file. Freezing and unfreezing a credit file is now free, including those for children under 16.
To request a freeze, individuals need to contact all of Equifax, Experian, and TransUnion. The credit reporting agencies must place the freeze within one business day if the request was made online or by phone and within three business days if the request was made by mail. A request to lift the freeze must be performed within one hour.
“Don’t confuse freezes with locks,” the CFPB said in a release. “They work in a similar way, but locks may have monthly fees. If you want a free freeze guaranteed by federal law, then opt for a freeze, not a lock.”
Fraud alerts under the new law now last one year instead of the previous 90 days. Fraud alerts, which tell businesses to check with an individual before opening a new account, will be free. Victims of identity theft can get an extended fraud alert for seven years.
Additionally, those in the military have access to active duty alerts. The law allows them to place a fraud alert for one year, renewable for the time they’re deployed. For those in the military, a request to any one of the credit reporting agencies for a fraud alert or active duty alert will be sufficient. The agency contacted is required to notify the other two.
The free freezes follow the 2017 cyber breach at Equifax which the company said could impact as many as 145.5 million US consumers.
