Time for MA to Pass the Free Credit Freeze Bill
State legislative committee to hold hearing on free credit freeze bill. Equifax’s massive security breach – affecting 3 million Massachusetts residents and 143 million Americans nationwide – is a timely reminder of the need to allow consumers to lock down or “freeze” their credit reports to prevent ID theft.
Free Credit Freeze
An Act Removing Fees for Security Freezes and Disclosures of Consumer Credit Reports, SB 130 & HB 134
Lead Bill Sponsors: Senator Barbara L’Italien and Representative Jennifer Benson
Equifax’s massive security breach – affecting 3 million Massachusetts residents and 143 million Americans nationwide – is just the most recent reminder of the need to allow consumers to lock down or “freeze” their credit reports preventing identity thieves from setting up new credit accounts in an unsuspecting consumer’s name. An Act Removing Fees for Security Freezes and Disclosures of Consumer Credit Reports, SB 130 & HB 134, filed by Senator Barbara L’Italien (Andover) and Representative Jennifer Benson (Lunenburg), allows consumers to “freeze” and “thaw” their credit reports for free. Freezing your credit report prevents identity thieves from setting up new accounts because creditors will not open a new account without first checking a consumer’s credit report.
In 2016 over $16 billion was stolen from 15 million Americans as a result of identity theft – a 16% jump from the year before. While consumers are not liable for the fraudulent charges, they spend endless time, effort and frustration in clearing up their credit reports after they have been victimized. In the meantime, because of their poor credit rating as a result of the fraud, they are charged higher interest rates for credit and risk losing out on a new job or housing. According to the Federal Trade Commission (“FTC”) it took credit bureaus more than six months to correct the credit reports of more than half of the identity theft victims surveyed. And that’s if victims detect fraud in a timely manner – the FTC also reports that less than a third of victims are able to do so within a week.
The three major credit reporting agencies – Equifax, TransUnion, and Experian – charge Massachusetts consumers $5 to freeze their credit reports and an additional $5 every time they want to thaw or lift the freeze with each credit bureau. While some of the fees are waived if you are a victim of identity theft and have a police report, it is too onerous and more importantly too late for consumers to protect themselves. Maine, Indiana, and South Carolina already have passed laws allowing all consumers to freeze and thaw their credit reports for free. Some states only limit or waive fees for certain groups of people or just for the freeze and not a thaw.
Credit reporting agencies should be encouraging consumers to freeze their credit reports, not discouraging us.
Legislative Cosponsors:
Sen. Michael Barrett
Sen. Sal DiDomenico
Sen. James Eldridge
Sen. Anne Gobi
Sen. Kathleen O’Connor Ives
Sen. Patricia Jehlen
Sen. John Keenan
Sen. Barbara L’Italien*
Sen. Michael Rush
Rep. Jennifer Benson*
Rep. Paul Brodeur
Rep. Antonio Cabral
Rep. Daniel Cahill
Rep. Mike Connolly
Rep. Brendan Crighton
Rep. Will Crocker
Rep. Michael Day
Rep. Marjorie Decker
Rep. Diana DiZoglio
Rep. William Driscoll
Rep. Michelle Dubois
Rep. Paul Frost
Rep. William Galvin
Rep. Denise Garlick
Rep. Colleen Garry
Rep. Susan Williams Gifford
Rep. Solomon Goldstein-Rose
Rep. Paul Heroux
Rep. Natalie Higgins
Rep. Bradford Hill
Rep. Steven Howitt
Rep. Dan Hunt
Rep. Randy Hunt
Rep. Louis Kafka
Rep. Kay Khan
Rep. Robert Koczera
Rep. Kevin Kuros
Rep. Jack Patrick Lewis
Rep. David Linsky
Rep. Elizabeth Malia
Rep. Paul Mark
Rep. Paul McMurty
Rep. Adrian Madaro
Rep. John Mahoney
Rep. Joan Meschino
Rep. Brian Murray
Rep. Keiko Orrall
Rep. Sarah Peake
Rep. Elizabeth Poirier
Rep. Denise Provost
Rep. Angelo Puppolo, Jr.
Rep. David Rogers
Rep. Angelo Scaccia
Rep. John Scibak
Rep. Todd Smola
Rep. Thomas Stanley
Rep. Jose Tosado
Rep. Steven Ultrino
Rep. Aaron Vega
Rep. John Velis
Rep. Chris Walsh
Rep. Bud Williams
Rep. Jonathan Zlotnik
Authors
Deirdre Cummings
Legislative Director, MASSPIRG
Deirdre runs MASSPIRG’s public health, consumer protection and tax and budget programs. Deirdre has led campaigns to improve public records law and require all state spending to be transparent and available on an easy-to-use website, close $400 million in corporate tax loopholes, protect the state’s retail sales laws to reduce overcharges and preserve price disclosures, reduce costs of health insurance and prescription drugs, and more. Deirdre also oversees a Consumer Action Center in Weymouth, Mass., which has mediated 17,000 complaints and returned $4 million to Massachusetts consumers since 1989. Deirdre currently resides in Maynard, Mass., with her family. Over the years she has visited all but one of the state's 351 towns — Gosnold.
