The "credit
freeze" portion of this bill went into effect January 1, 2003.
This allows a consumer to "freeze" their credit record
at each credit bureau.
Similar credit freeze laws have been passed for CT,
IL, LA, ME, NV, NC, TX, VT & WA.
You will need to contact each credit bureau to completely freeze
your credit. Here's the information for how to freeze your credit
at each bureau:
Here's a short
Q & A on what I've learned so far about the credit freeze: (Find
additional SB168 details below.)
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How will a credit freeze protect me? |
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Placing a security freeze on your credit reports means an identity thief — even one who has your name, address, Social Security number, birth date and more — will not be able to get new loans and credit in your name. That’s because lenders, retailers, utilities and other businesses need access to a credit report to review and approve new credit, loans, and services. |
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Who can freeze their credit? |
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Any citizen of California can freeze their credit. Similar legislation is now in place for Texas, Louisiana & Vermont. |
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How do I freeze my credit? |
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Please read the information for each bureau: |
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How much will it cost? |
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Victims of identity theft can access the service for free. You'll have to provide documentation, however, from a police report or the DMV. For others, the cost is $10. Please read the specific cost for each bureau: |
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Isn't this just another way for the credit bureaus to get more money from us? |
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It might seem that way, but Californians should feel lucky that this is available. Fraud alerts are ignored by some creditors and a security freeze provides a much stronger means of protection. The service is free for victims, and believe me, they are glad to have the option. |
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Will I need to freeze my report with each credit bureau? |
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Yes. When you go to buy a new car, open a charge account, or refinance your house, you don't know which bureau the lender will use to request your report. In other words, for the best protection you'll need to freeze your credit at each bureau. |
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How will I open new credit lines if my report is frozen? |
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People who’ve frozen their credit reports can still get new loans and credit for themselves. Credit bureaus have set up a PIN-based system to allow people with frozen credit reports to contact the credit bureau, provide a PIN number, and allow their credit report to be released to a specific lender or for a specific period of time. Credit bureaus are obligated to release the report within three business days of such a request. |
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Will I be able to request my own report if my credit is frozen? |
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Seems
like the answer is yes, though Equifax is saying no.
On 9/21/02 Amendment SB 1730 was enacted into law that allowed
access to a frozen file to include: |
Here
are the rest of the details on SB 168:
Social Security
Number Restrictions
SB 168 prevents identity theft by taking Social Security numbers out of the public’s view and the easy reach of criminals by making it illegal for businesses to do any of the following for new accounts after July 1, 2002:
- Post or display
Social Security numbers;
- Print Social
Security numbers on identification cards;
- Require a
person to transmit a Social Security number over the Internet
unless the connection is secure or the Social Security number
is encrypted;
- Require a
person to use a Social Security number to log onto an Internet
Web site unless used in combination with a password or other authentication
device; and
- Print a Social Security number on any materials mailed to a customer, unless it’s required by law, or the document is a form or application.
For most businesses, the Social Security number restrictions only apply on a going forward basis, as long as customers with existing accounts (opened before July 1, 2002) are allowed to opt-out of such uses at their request.
However, the health care and insurance industries must comply with the above requirements for all policies and accounts according to the following timeline:
- After January
1, 2003, health care and insurance businesses must comply with
the restrictions in 1, 3, 4, and 5 above for all individual policy
holders only (not group policies, such as employer groups).
- After January
1, 2004, health care and insurance businesses must comply with
all Social Security number restrictions in the bill for all new
individual policy holders and new group policies.
- By July 1, 2005, health care and insurance businesses must comply with all Social Security number restrictions in the bill for all existing policies.
The bill requires the health care and insurance industries to make reasonable efforts to cooperate, through systems testing and other means, to ensure that all are able to meet the deadlines in the bill. If a business is unable to meet the deadlines due to unforeseen circumstances, it may appeal to the Department of Managed Health Care for a one-time six-month extension.
Credit Report Freeze
SB 168 also prevents identity theft by giving people the right to "freeze" access to their credit reports. Placing a security freeze on your credit reports means an identity thief – even one who has your name, address, Social Security number, birth date and more – will not be able to get new loans and credit in your name. That’s because lenders, retailers, utilities and other businesses need access to a credit report to review and approve new credit, loans, and services.
At the same time, SB 168 makes sure people who’ve frozen their credit reports can still get new loans and credit for themselves. Credit bureaus are required to set up a PIN-based system to allow people with frozen credit reports to contact the credit bureau, provide a PIN or password, and allow their credit report to be released to a specific lender or for a specific period of time. Credit bureaus are obligated to release the report within three business days of such a request. The credit report freeze provisions of SB 168 become effective January 1, 2003.
Security Alert
SB 168 also codifies the credit bureaus’ current practice of allowing a person to place a fraud alert, or ‘security alert,’ on their credit report to warn banks that the person may be a victim of identity theft. The alert is advisory only, which means financial institutions aren’t required to take precautionary measures before approving new loans, credit and services. However, for people who wish to place an alert rather than a freeze on their credit reports, SB 168 requires credit bureaus: 1) to provide a toll-free telephone number available 24 hours a day, 7 days a week, for people to place security alerts; 2) to place the alert within 72 hours of receiving a request; 3) to ensure the alert remains in place for at least 90 days; and 4) to provide a free copy of the credit report to the person at the end of the 90 days. The security alert provisions of SB 168 become effective July 1, 2002.
Penalties
The sections of SB 168 dealing with the credit alert and credit freeze amend the California Credit Reporting Agencies Act (CRAA) (Civil Code Section 1785.1 et seq.), therefore the remedies in place for the enforcement of CRAA also apply to the credit alert and credit freeze. Those remedies, found in Civil Code Section 1785.31, allow anyone who suffers damages because of a violation of the credit freeze or credit alert provisions of the bill to sue for injunctive relief and damages including court costs, loss of wages, attorney's fees and when applicable pain and suffering.
In addition, the Attorney General and 58 district attorneys throughout the state have the power to prosecute anyone who violates the provisions of SB 168 (pursuant to Civil Code Section 1785.30 et seq. or pursuant to B&P Code section 17200 et seq. covering unfair business practices, the consumer Credit Reporting Agencies Act, or Title 1.6G of the bill).
