 |
|
|
|
|
|
|
|
|
|
Contact Info: |
John L Ruybalid
Reverse Mortgage Specialist
Phone: 505-690-1029
Other: 800-758-6115
Fax: 505-984-8664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Background. For several years the New Mexico State Legislature has received testimony from individuals who have become victims of identity theft. One result is that credit cards or other credit accounts are opened in their names and used to the maximum, ruining the victim’s credit rating. In response, the 2007 Legislature adopted a law, effective July 1, 2007, that authorizes the use of security freezes. What is a security freeze? A security freeze is a protection against a credit account being opened in your name. You now have the ability to request that the three major credit reporting agencies (Equifax, TransUnion and Experian) freeze your credit file until you personally approve a new credit account. No one can open a new credit account in your name, even if he/she has your name, Social Security number or other identifying information. How does it work? You can request that each of the three credit reporting agencies freeze your account. You will need to send a letter (see the back for a sample letter) to each credit reporting agency by regular or certified mail, providing a copy of a government issued identification and proof of your current residence and the fee if you are under 65. (You and your spouse have to do this separately.) By law, the credit reporting agency must place a freeze on your account within 3 working days of receiving the request. You should then receive a confirmation and password or personal identification number (PIN) within 5 working days. You must use the password or PIN to "unfreeze" your credit file when you want to open a credit account – so, safeguard this. (Note: Between July 1, 2007 and September 1, 2008 it may take up to 3 days to "unfreeze" the account. After September 1, 2008 it should only take 15 minutes.) A security freeze will not affect your current credit ratings or any credit accounts you have available. Is there a cost? For individuals age 65 and over and for victims of identity theft, there are no fees charged, except Experian may charge a $5.25 gross receipts tax. For individuals under the age of 65 there is a $10 fee to initiate the freeze ($10.50 for Experian), a $5 fee to lift the freeze ($5.25 for Experian) and a $10 fee to reinstate the freeze ($10.50 for Experian) if you have requested that it be lifted. For example, if you choose to start a freeze in all three agencies the full cost would be $30.50. February2008 |
|
|
|
|
