Equifax Breech: Should you freeze your credit?

As reported widely, a major breach at the credit bureau Equifax, one of the “big three” companies (along with TransUnion and Experian) that compile consumer credit histories and furnish reports to lenders considering credit applications, has exposed the sensitive personal information of 143 million people. This information includes Social Security numbers, birthdates and addresses. The breach has led consumers, like Jackie* from New Jersey, to call Consumer Action’s hotline asking, “How do I place a freeze on my credit file?”

A credit, or security, freeze is a preventive tool to help you to stop impostors from using your personal information to establish credit, a crime known as “identity theft.” Freezing your credit file means that new credit cannot be established in your name until you lift the freeze. Unless you are a documented victim of identity theft, you may have to pay a fee to place the freeze and another fee to lift the freeze temporarily when you need to apply for credit, though a handful of states mandate that freezes be free for all residents.
Equifax has offered free credit file freezes until Nov. 21, 2017. If you want a free credit file freeze from Equifax, you can call 800-349-9960 or visit the company’s website.
To be effective, one should place a freeze with all three credit bureaus. However, TransUnion and Experian, not affected by breaches, are not offering free freezes. To learn the cost of freezes in your state, see this page on the TransUnion site.
So how do you place a freeze on your credit file? Contact the bureaus. Each one will have a different procedure for activating and lifting a freeze. Remember, the freeze remains on your credit file until you remove it; you should contact the credit bureaus where you placed freezes before applying for new credit. Here’s the contact information for the three major credit reporting bureaus.
Equifax
Call 800 349-9960 or visit the company’s website. For more information, see the Federal Trade Commission’s “Free credit freezes from Equifax.”
Experian
Call 888 397-3742 and follow the prompts for placing a security freeze, or visit the company’s website.
TransUnion
Call 888 909-8872 and follow the prompts for placing a security freeze by mail, or visit the company’s website, where you can establish an account and freeze your credit file. We’ve noticed that TransUnion is pushing its TrueIdentity “credit monitoring”—a paid product—on some of its freeze information pages, but you can request a freeze, for a fee, without enrolling in the paid product.
Pros and cons
Consider both the benefits and drawbacks of locking your credit file before you decide whether or not to place a security freeze.
Pros:

• A security freeze can stop imposters from opening new accounts in your name.
• A freeze does not stop you from getting new credit or other services.
• The freeze does not expire—it remains in effect until you remove it.
• Freezing provides much greater protection and typically costs much less than a monthly credit monitoring service.
• A freeze does not affect your credit score.
• In most cases, placing a security freeze—and lifting it—is free for victims of ID theft. However, just being a victim of the Equifax breach does not make you an ID theft victim.

Cons:

• A security freeze only is effective if you activate it at all three credit reporting agencies.
• Depending where you live, non-victims may pay up to $30 to place the freeze with all three agencies.
• In most states, non-victims must pay a fee whenever they ask to temporarily lift the freeze. However, it is free in many states to permanently remove the freeze.
• A security freeze can take up to three business days to be lifted, delaying your credit application or other transaction and preventing you from accessing “instant credit” offers at stores and retailers. (A number of states have passed laws, however, that require the freeze be lifted within 15 minutes of the request.)
• A freeze does not prevent fraud involving your existing bank or credit accounts.

For more information, visit Consumer Action’s guide to protecting your personal data in the wake of the Equifax breach.
*Not this consumer’s real name

Thanks to Consumer Action for this item quoted directly in full.