What is a security freeze with the Fair Credit Reporting Act?

Missourians who are dealing with financial concerns based on their credit reports are frequently unaware of their rights under the Fair Credit Reporting Act. Since it is vital to have functional credit, an accurate credit score is imperative. Credit reporting agencies are not immune to mistakes and people who have been victimized by identity theft can have their credit negatively impacted and face extensive challenges because of it. Knowing about the law and what rights are available is critical.

One that is not commonly understood is the right to have what is known as a security freeze. If this is needed, it is important to have legal help to achieve it. The security freeze stops the reporting agency from providing information about the consumer’s credit report without having express authorization for doing so. The purpose of the security freeze is to stop others from having credit, loans and other services approved in the individual’s name if consent has not been granted. There are factors that people who are considering a security freeze should know. If they use this option, it could hinder efforts for subsequent requests for loans, credit, a mortgage or other factors that require a credit check.

This means that the security freeze should be considered as part of other choices the consumer can use. For example, placing a fraud alert on the credit can be done. This is free. The initial fraud alert lasts for one year and will be on the person’s credit file. Prior to verifying a consumer’s identity, a business must go through various steps before granting credit. Those who have been victimized by identity theft can have the extended fraud alert. It lasts for seven years. The security freeze will not impact existing accounts when they request information to review the credit or to collect.

Financial concerns are a part of life, but when those concerns extend to the possibility that a person’s rights were violated under the Fair Credit Reporting Act, it is imperative to take steps to rectify the situation. Whether it is seeking a security freeze for greater safety, to correct inaccurate information, or to fix any other negative that came about because of a credit report, having legal assistance is critical. A law firm that helps clients by using the protections in the Fair Credit Reporting Act should be contacted for help.