Kentucky Freeze Law Goes Into Effect July 12th

July 2006
According to a story in Louisville's Courier Journal, beginning July 12th Kentucky consumers will have additional legal weapons in the fight against identity theft.

The new law gives Kentuckians the right to place a freeze for up to seven years on their accounts with the three main credit reporting agencies -- Experian, TransUnion and Equifax -- which means no one can check a consumer's credit without that person's permission.

People who are victims of identity theft and have a valid police report will be able to get the freeze for free. Others will have to pay $10.

State Rep. John Vincent, R-Ashland was the main sponsor of the bill.
 
As reported by the Courier-Post, Todd Leatherman, Director of the Consumer Protection Division for the Kentucky attorney general's office, said the new law will "dramatically decrease the ability of thieves to get someone's credit file" after he or she has been a victim.

However, as quoted by the Courier-Post, Leatherman reminded consumers that there are certain "ramifications" when a consumer freezes his or her credit.

A freeze will delay future credit transactions, because the consumer will have to request the freeze be lifted temporarily, which costs $10 and could take up to three days. That means any transaction that requires a credit check, such as closing on a house, signing up for a credit card or getting a cell phone, could take longer and be more complicated.

As reported by the Courier-Post, Director Leatherman said, "People need to know these types of details before they place this willy-nilly on their accounts." 

Another provision in the law requires businesses to destroy any personal information about its clients before the information is disposed of.

A number of other states have enacted credit freeze laws. Some states permit all consumers to place a freeze on their credit -- others only permit victims of identity theft to implement the freeze. The U.S. Congress is considering a number of identity theft bills. One in particular may weaken the provisions of Kentucky's new law by establishing a national standard granting only victims of identity theft the right to freeze their credit.

As reported by the Courier-Post, State Rep. Vincent said, "I hope that Congress keeps these stringent standards in place," Vincent said, "because this is so hard for an individual to get their hands on and deal with."