The "credit freeze" portion of this bill went into effect December 1, 2005. This allows a consumer to "freeze" their credit record at each credit bureau.

You will need to contact each credit bureau to completely freeze your credit. Follow these instructions [1] to freeze your credit at each bureau.

How will a credit freeze protect me?

Placing a security freeze on your credit reports means an identity thief - even one who has your name, address, Social Security number, birth date and more - will not be able to get new loans and credit in your name. That's because lenders, retailers, utilities and other businesses need access to a credit report to review and approve new credit, loans, and services.

Who can freeze their credit?

Applies to all consumers-VETERANS WHO RECEIVED NOTICE OF A BREACH FROM Dept. of Veterans Affairs: free placement, removal and temporary lifting through January 1, 2007. The statute granting this is HB 2883. To see its text, go to: http://www.ncga.state.nc.us/Sessions/2005/Bills/House/HTML/H2883v5.html [2]

Special Instructions for Veterans: Veterans, their agents or those who receive government benefits based on their relationship with a veteran get free placement, temporary lifting and removal of security freezes through 1/1/07. You must send a copy of the notification of breach and proof of status as a veteran or member of the North Carolina national guard.

How do I freeze my credit?

Follow these instructions [1] to freeze your credit at each bureau.

How much will it cost?

No fees for ID theft victims with valid report/complaint with law enforcement agency. For others, up to $10 to place, remove, or temporarily suspend.

Isn't this just another way for the credit bureaus to get more money from us?

It might seem that way, but those in North Carolina should feel lucky that this is available. Fraud alerts [3] are ignored by some creditors and a security freeze provides a much stronger means of protection. The service is free for victims, and believe me, they are glad to have the option.

Will I need to freeze my report with each credit bureau?

Yes. When you go to buy a new car, open a charge account, or refinance your house, you don't know which bureau the lender will use to request your report. In other words, for the best protection you'll need to freeze your credit at each bureau.

How will I open new credit lines if my report is frozen?

People who've frozen their credit reports can still get new loans and credit for themselves. Credit bureaus have set up a PIN-based system to allow people with frozen credit reports to contact the credit bureau, provide a PIN number, and allow their credit report to be released to a specific lender or for a specific period of time.

Yes this is a pain, but the protection a security freeze provides is invaluable.