With consumer fraud on the rise, protection of your privacy has become increasingly important. Several bills passed during the 2006 Regular Session of General Assembly will assist in protecting your privacy. These bills became law on July 12, 2006.

Consumers will be allowed to take steps to protect the release of information in their credit report when their identity may have been used fraudulently. House Bill 54 requires the consumer reporting agency to place a security freeze on a report no later than 10 business days after receiving a written request.

This new law will also prohibit the release of a consumer report to a third party without written authorization from the consumer if a freeze is in place. However, the third party is permitted to treat an application for credit as incomplete if they request access to a report that has been frozen.

Consumers can request a security freeze for up to seven years, or may request the freeze to be temporarily lifted. The consumer reporting agency will impose a charge for the initial placing, temporarily lifting, or removing a security freeze. The charge may be increased annually.

There are numerous situations in which a security freeze does not apply. Such as with federal, state or local governments, including law enforcement and courts; a private collection agency that is attempting to collect an existing debt of the consumer; and child support enforcement agencies. Consumers should check with the reporting agency to clarify who is exempt from the freeze.