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A PIN for Your Credit

A PIN for Your Credit
If you were to withdraw money at your ATM and it didn't ask you for your PIN, you'd probably be a bit concerned about the rest of the cash you'd stashed in that bank. You'd feel the same way if your bank let you complete online transactions without asking for a password. So why, then, can you get a loan or a new credit card without the same sort of basic security precaution? That's the idea behind new legislation now available in 33 states that, by the looks of it, will soon nation-wide.

The District of Columbia is the latest to enact the new level of consumer protection, which enables residents to place a so-called "security freeze" on their credit assets, preventing any new lines of credit from being drawn in their name without explicit authorization. Once a freeze has been put in place, you can start a new line of credit only by calling one of the three major credit bureaus and identifying yourself with a secret pass-code. This will temporarily lift the freeze. Once you've purchased your new HDTV/car/house, you can re-instate the freeze and go back to living in (relative) peace of mind. The cost of doing this varies from state to state, but it's around $10 for the freeze and $5 for each temporary unfreeze.

This isn't national yet, but Congress is currently working on a bill that will hopefully change that. The only difference with the proposed federal layer of protection is cost. The "Identity Theft Prevention Act" would cost $30 to lock up your credit assets with all three credit bureaus -- no special deals for couples. You'll get two free unfreezes per year, but they'll cost you $15 a pop after that.

Does anyone else have that annoying yet irresistible "Free Credit Report Dot Com" jingle stuck in their heads?

From Slashdot and The Washington Post

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