Security freezes are designed to prevent a credit reporting company from releasing your credit report without your consent. When you place a security freeze on your file, you will be provided a personal identification number or password to use if you choose to remove the security freeze from your file or authorize the temporary release of your credit report for a specific person or period after the security freeze is in place. To provide that authorization, you must contact the reporting agency and provide all the following:
- Sufficient identification to verify your identity.
- Your personal identification number or
password provided by the credit reporting company.
-
A statement that you choose to remove
the security freeze from your file or that you authorize the reporting agency
to temporarily release your consumer report. If you authorize the temporary
release of your consumer report, you must name the person who is to receive
your consumer report or the period for which your consumer report must be
available.
When I placed a security freeze on my file, the first thing I learned was that the credit bureaus are more interested in selling you your credit report and other services, i.e. credit monitoring, than they are in anything else. It was extremely difficult for me to connect with someone who could place the security freeze on my file, but with determination and perseverance I prevailed with two of the bureaus. I never was able to successfully place a security freeze on my file at the third bureau.
I learned that fraud doesn't always occur directly after your personal information is stolen. Sometimes criminals wait for a period of time before attempting to use your information to open new credit sources. Since I was not actively seeking credit, I decided to leave the security freeze in place and gave the subject no thought until a year later. During that year, I received letters from two businesses advising me that they could not approve my request for credit.
One letter came as a result for my request for credit at a well known chain that sold electronics. I simply had forgotten about the security freeze and the firm could not access any credit information from my file at the credit bureau. No problem...the freeze was working...and I didn't need a new account at the store anyway. On the second occasion, I bought a new phone through another national chain. After my purchase, I received a letter from the telephone service provider denying me credit (which I never applied for anyway). The freeze was still working. Good job.
When I decided to refinance my mortgage, I remembered the security freeze and set about removing it from my file at the credit bureaus. Since I need to act quickly to take advantage of a lower interest rate offer, I found the process of removing the freeze slow and cumbersome. This was a year later and my memory of my interaction with each credit bureau was fuzzy to say the least. It was extremely difficult getting to talk to someone about removing my security freeze.
Ultimately, I resolved my situation with Equifax after paying four payment of $10 each while trying to use the online application to remove the freeze. Each time I put in my information and hit "Submit", my bank account was charged $10, but I was told my personal identification number was incorrect and to try again. After four attempts (which cost me a total of $40), I gave up on the online application. I finally got a phone number that connected me with an agent. The freeze was removed in five minutes and a letter of confirmation was received in three to seven business days.
Experian sent me a personal identification number by mail (in eight to ten business days) and I was able to use that number to remove the security freeze from my file. It turned out that I had never gotten through to Trans Union when I tried a year ago, so a security freeze had never been placed on my file at that credit bureau. Finally the mortgage company had access to the records they needed to assess my credit scores. Success at last.
Security freezes serve a useful purpose. Be sure to retain your personal identification number. It takes time to remove them either permanently or temporarily. You should be aware that using a security freeze to take control over who is allowed access to the personal and financial information in your file may delay, interfere with or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, insurance, government services or payments, rental housing, employment, investment, license, cellular telephone, utilities, digital signature, Internet credit card transaction or other services, including an extension of credit at point of sale.
Plan ahead to avoid a time crunch and unnecessary stress. If you are actively seeking credit, you should understand that the procedures involved in lifting a security freeze may slow your own applications for credit. You should plan ahead and lift a freeze, either completely if you are shopping around, or specifically for a certain creditor, a few days before actually applying for new credit.
