New credit freeze program may protect consumers from identity theft
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No Comments [ Add Comment ]SALT LAKE CITY -- Utah consumers now have first dibs on a credit protection identity theft program that state leaders predict will become the national norm within a few years.
The credit freeze program, in effect as of Sept. 1, is similar to credit freeze laws in 36 other states. Upon request, reporting agencies will not provide a credit report to merchants seeking to open a line of credit unless the consumer personally gives authorization to release the report.
This stops identity theft because a potential thief will not know the password or personal identification number the individual provided to the credit agencies.
State Sen. Carlene Walker, D-Salt Lake, said Utah's law is the first to demand that credit bureaus "thaw" a person's credit profile within 15 minutes of a request.
Most other states require a 3-day waiting period to allow the credit agencies to process the request, a move that frustrates businesses like furniture retailers and car dealerships that offer instant credit.
Consumers must call each of three credit reporting agencies to freeze their credit. Utah's law says the agencies may charge a reasonable fee for the freeze service. Walker anticipates the fee will be about $10 or less.
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