Iowa consumers can now request that the three reporting agencies (Equifax, Experian and TransUnion) place a freeze on their credit reports. You must send a certified letter requesting that the account be frozen, include verification documents, and pay a $10 fee to each agency. If you are an identity theft victim you can freeze the account at no cost by sending a copy of the police report.
When someone has stolen your identity and applied for a credit card or loan in your name the bank or business usually checks your credit report prior to issuing a new account. The freeze denies the business access and will result in the denial of credit.
A credit report freeze stays in effect until you request that it be lifted. If you are applying for work, insurance, a new mortgage or loan, or credit account you can lift it for a period of time, or for a specific creditor, or permanently. After you send your letter asking for the freeze, each of the credit reporting agencies will send you a Personal Identification Number (PIN). You will also get instructions as to how you can lift the freeze. There are a variety of ways to lift the freeze (by mail, phone, or internet) using your PIN. The fee for lifting the freeze is $10. You can avoid paying $30 to have all three agencies lift the freeze if you ask what credit agencies will be contacted.
Placing a credit freeze on your reports will not lower your credit score. It may create a delay in loan approval but you will still be able to access your Free Credit Report. Existing creditors, collection agencies and government agencies will still have access to your information as well.
A credit freeze will not prevent all types of identity theft. There are accounts that do not require a credit check and a thief can use existing accounts and cards. A freeze will only prevent opening a new line of credit.
Frequent travelers to other states, college students, and individuals who have been notified that their personal information has been compromised may find a credit report freeze a useful tool to prevent identity theft.
Addresses and specific information required by each credit agency can be found at the Iowa Attorney General's Consumer Page.