In this new age of information technology, our personal privacy has taken a major hit. No longer is anyone truly anonymous, but in actuality you can be found almost instantaneously by a search of the internet. If you don't believe me, type your name into Google and see what comes up. You might be shocked.



To make matters even worse, you can also do a Google search for ?background checks? and you will again be shocked at all of the companies offering their services anywhere from $39.00 up to $149.00 to find out anything on anyone. This search you will pay for can include their social security number, corporate tax I.D. number, home address, place of employment, what type of car they are driving, their credit rating and just about anything else you can think of.

Did you know there's a new law that will help stamp out identity theft by allowing consumers to freeze their credit information?

What this credit freeze means is that you have the right to decide who can and cannot access your personal information. There are a few timing pitfalls in doing this but if your identity has been stolen or you fear it may be, this may be just what the doctor ordered for you. Unfortunately, there are only twelve such states that have placed this law into effect thus far, with California being the first and New Jersey recently enacting it.

What caused this freeze-out law in the first place?

This is the simple part. Unfortunately, credit card companies are not our friends. They never have been and never will be. Keep in mind that the credit card companies were the largest, single contributor to our last presidential campaign and that alone should make you sleep better.

What this law has done is help expose security breaches at huge companies such as Lexis-Nexis and Choice Point-two companies recently in the news that ?accidentally? lost over 40 million Americans personal identity information. Overnight, millions of Americans had their social security numbers, car accounts, bank accounts and credit card numbers all over the streets. This new law has a stipulation that should a breach occur, data brokers have to inform consumers immediately.

Data Brokers?

Here's the part that seems to shock people in America. Credit bureaus and data brokers buy and sell your name, address, Social Security number and credit file info to anyone who is willing to pay for it. The fraud alert allows all U.S. citizens to place a 90-day watch on their credit file, requiring banks and other lenders to take extra steps to verify your identity before issuing credit.

So what's all the fuss about?

First and foremost, the credit bureaus serve the credit card companies. Always remember that. Also, consumer credit counseling, allegedly intended to help the consumer, is funded by the credit card companies. Do you see the relationship now? Tell me who owns who here.

Who is opposing Credit Freezes?

Credit reporting agencies are! They make a lot of money in selling your personal information to brokers, car dealerships, banks and mortgage brokers. Have you ever wondered why you got that Pre-Approval from the car dealership in the mail? They have paid either the credit bureau directly or a third party company that paid for information in the range of beacon scores that they are looking for. The car dealership might be targeting only people with discharged bankruptcies or they may be targeting consumers that have had a little slow credit but no bankruptcy or repossession. Car dealers make more money off both of these classes of consumer, so it benefits them to target these two groups.

How-To:

Eight of 12 states allow all consumers to place credit freezes on their credit reports. In four of the states, you can only place a credit freeze in your file if you have been the victim of ID theft and have a police report to back it up.

The cost of a security freeze varies from state to state. The cost to thaw a credit freeze also varies from state to state. However, most states do offer the freeze free of charge if you can prove you have been victimized by an identity thief.

To place a credit freeze on your file, you must mail (certified) the following information to at least one of the three major national credit bureaus, Experian, Equifax or TransUnion:

?Your Full name: First name, middle name, last name, Jr., etc.-

?Current home address and addresses for past five years, Social Security number and birth date-

?Payment by check, money order or credit card. You will be asked to verify the name, account number and expiration date on the credit card.

Costs vary from state to state, but initiating a freeze will run you anywhere from zero to $10. Lifting it will run another $5.00 to $12.00.

Credit bureaus must place your freeze no later than five days after receiving your written request. After you send your letter asking for the freeze, each of the credit bureaus will send you a PIN or personal identification number.

You will also get instructions on how to lift the freeze. Each state regulates their credit freeze laws differently, so check with your state's attorney general's office. Do a Google search for Washington Attorney General, or whatever state you live in for the website.

For a listing of State Security Freeze Laws and which states currently have the law:

http://www.consumersunion.org/campaigns/learn_more/002355indiv.html