Free Buyer GuidesCalifornia Identity Theft Attorneys
Credit Freeze
If you suspect or know that you have been a victim of identity theft, there are a number of steps that you can take to help prevent further fraudulent activity while you sort out the mess. One of these steps is placing a credit freeze on your credit report.
What is a Credit Freeze?
Freezing your credit means that you restrict access to your credit report. When a credit freeze is in place, potential creditors cannot gain access to your credit report, making it highly improbable that an identity thief would be able to open any new accounts under your name. The credit freeze has no bearing on your credit score and does not disallow you from obtaining your credit report. Companies that you already do business with, however, such as a mortgage or credit card company, will still be able to access your credit report. The same if true for collections agencies that work for these companies.
California Credit Freeze Laws
A state's credit freeze law determines who has the authorization to apply a credit freeze and how much it costs. In California, all consumers are eligible to freeze their credit. If the consumer is over 65 years old, the cost is $5.00. All other consumers pay $10.00. Identity theft victims can do so for free.
Credit Freeze vs. Fraud Alert
When a fraud alert is placed on a credit report, potential creditors and third parties can still access the report. Although the fraud alert dictates that potential creditors must use "reasonable policies and procedures" to confirm your identity, there is still a possibility that an identity thief may get around these procedures and open a new line of credit. On the other hand, a credit freeze only allows companies you already have a relationship with to access your credit report. In this way, it prevents an identity thief from being able to get new credit. If the fraudulent activity involves existing accounts, however, neither a fraud alert nor a credit freeze can stop a thief from using them. If that happens, the compromised accounts must be closed.
The Most Important Step
Placing fraud alerts and credit freezes on your credit, alerting the bank and the DMV, and closing compromised credit card accounts are all necessary steps to resolving the damage done by an identity thief. But creditors don't necessarily cooperate with these measures and may attempt to unlawfully hold the victim responsible for fraudulent accounts and debts. If this happens, the most important step to take is retaining the services of an attorney. If you have been the victim of identity theft and uncooperative creditors in California, attorney Howard D. Silver can help. Mr. Silver is committed to obtaining justice for victims of identity theft by ensuring that creditors and other third parties are held civilly liable for their illegal actions. Contact Mr. Silver today to learn more about protecting your legal rights at (866) 495-3666.
