South Carolina and Indiana enhance credit freeze laws

01.02.09
By Nicholas Storie

Two states have announced enhancements that they say will help protect consumers from identity theft.

Both South Carolina and Indiana have introduced changes to current credit freeze laws, which allow people to essentially lock potential creditors out of their credit reports.

All three consumer credit reporting agencies - Equifax, Experian and TransUnion - are required to comply with a freeze, which means third parties cannot access data on consumers' credit histories or scores.

For those who suspect a thief may have access to their personal details, the credit freeze process is an important way to ensure no one can open a new account in their name - even if the fraudster has access to all of their personal information.

A total of 47 states offer credit freezes, but South Carolina and Indiana are the only two in which the process is free for everyone, in all situations.

Temporarily lifting the freeze to make a purchase with a credit card or completely removing the freeze is also free of charge.

In most other areas, the service is free for those who have already been a victim of identity theft but not for people who simply suspect they could have their identity stolen in the future.

In Indiana, the new law also makes it easier for people to enact a freeze. It states that residents can use email or a phone call to freeze their credit, which significantly speeds up the process. Typically, a request must be made by mail.

"By allowing Indiana consumers to e-mail credit freeze requests, we are making it easier for them to add an extra layer of protection against identity theft and other forms of personal identity fraud," said attorney general Steve Carter.

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A credit freeze is one way to protect against identity theft