It is estimated that every year there are over 3 million cases of identity theft each year – where crooks use stolen personal information like Social Security numbers to open new accounts in their victim’s name. A new law might change that. A “Credit Freeze” gives consumers the choice to “freeze” or lock access to their credit file against anyone trying to open up a new account or to get new credit in their name.

Effective Oct. 31, 2007, all three major credit bureaus will offer credit freezes to any individual who requests one. In effect it places an electronic padlock on your credit report.  No one can review your credit report until you remove the padlock. 

If an identity thief tries to apply for credit in your name, he'll be in for a rude surprise. That's because if a company can't review your credit report, it's very unlikely to issue you (or an impostor) credit.  A credit freeze is designed to eliminate identity theft at its source.

Since this was passed on Halloween – let me present a “scary” scenario. Let's say that an identity thief steals enough information to apply for credit in your name.  Next, the thief uses this information to obtain a driver's license or other official identity document containing your name, but the thief's photo. Then, he visits a car dealership or other seller of "big-ticket" items.  Finally, he test drives a luxury car and tells the salesman to charge it. Without a credit freeze, the thief will drive off the lot in a brand-new car, leaving you to pay the bill. However, with a credit freeze, the thief's application for credit in your name will be turned down cold.

To freeze your credit file, send a letter via certified mail to the following addresses:

• Experian Security Freeze, P.O. Box 9554, Allen, TX 75013
• Equifax Security Freeze, P.O. Box 105788, Atlanta, GA 30348
• Trans Union Consumer Protection Center, P.O Box 6790, Fullerton CA 92634

The letter must contain your full name, middle initial, and generation (Jr., Sr., etc.), your date of birth, your current address, and any previous addresses for the past two years.  You'll also need to include a copy of a government-issued photo ID card; a utility bill or bank statement with your name on it; and your Social Security Number. Finally, include a $10 check or money order per credit bureau.

Each credit bureau will send you a letter confirming the credit freeze.  You'll also receive a PIN code that you can use to "unfreeze" your account if you want to buy a new car, apply for a mortgage, etc.  "Unfreezing" costs another $10 per credit bureau.

There is a downside…if you lose your PIN, unfreezing your account may take up to ten days.  But, waiting ten days isn't necessarily a bad thing if you're prone to making impulse buying decisions. If you do have the PIN, you can remove the freeze in a matter of hours. 

Personal Update

The Colgan Clan is doing well. Emily is standing for 5 seconds at a time (and landing on her rump) and Chirstopher is really begining to care for her and filling the duties of being her "big brother."

Here is a picture of Kathy and Christopher at the pumpkin patch.