Freezing Your Credit Report

February 02, 2007

Eyewitness News Everywhere uncovers a way to protect you from identity theft!

Finding out you have been a victim can leave you feeling helpless.  The problem is so widespread now, that the state of Tennessee has taken action.

There is a new law on the books you might not know about that could be your best defense, permanently freezing your credit report.

In the past, people have been able to temporarily freeze their credit for a few months at a time, after becoming an identity theft victim.  But now, a new law allows you to be proactive to protect your finances.

Denise Mustiful-Martin, a doctor from Collierville, has been the victim of identity theft twice.

“I was angry, betrayed. You get kind of cynical and you want retribution."

Both times, someone in her office did the dirty work, stealing thousands of dollars.  In one case, the officer worker took the routing and account number from her business checks and ordered new ones, then started cashing them.

“Your first reaction is why me and then how could you?  They go into an explanation and you wonder didn't you think this was wrong?"

Now Martin says she routinely checks her bank statements in the mail and online and even changes credit cards every six months as a precaution.  But there is a new step you can take to protect your identity.

It's called a credit freeze.  Tennessee state legislators passed a law on January 1, 2008 that allows everyone to permanently freeze their credit report so thieves can't open new accounts in your name.  But, if you need to make a big purchase, like a car or home, or open a new credit card, you will have to go through steps to get the freeze lifted.

Financial advisors say despite that inconvenience, freezing your credit is a wise idea.

"I think there's always new and innovative ways to steal your identity.  For now it is going to help.  This is a good precautionary measure for people to take in the meantime," says Brienne Smith.

Source: http://www.myeyewitnessnews.com/