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Credit protection

The Legislature should create an optional security freeze so Floridians can protect themselves against identity theft and credit card fraud.

If Florida lawmakers prohibited homeowners from locking their back doors or installing intrusion alarms, burglars would find it very attractive here. Sound ridiculous? Maybe not. Florida is a hot spot for identity theft and credit card fraud, yet there is little consumers can do to protect themselves.

Recognizing that shortcoming, the Legislature will consider a bill (HR 37) this year that would allow Florida consumers to lock their credit records and be notified if anyone is trying to gain unlawful access.

Called a "consumer credit report security freeze," the process would allow Floridians to close their personal credit records to identity thieves. It would work this way: Individual consumers could send a certified letter to credit reporting agencies asking that their file be closed to outside scrutiny. The consumer would be given a unique identification code that would be needed to open the file.

So if an identify thief tried to get instant credit in your name, the transaction would be stopped and you would be notified. If you wanted to apply for credit, however, you could provide the code and have the freeze temporarily lifted.

It is the simplest and most direct way to protect against identify theft and should be the law of the land. Unfortunately, Congress has failed to act because politically powerful forces - the lending industry and retailers who thrive on easy credit - oppose such laws. A dozen states have adopted protections, and Florida should be next.

No doubt the threat exists. Florida had more than 38,000 complaints of consumer or credit fraud in 2004, and the Tampa Bay area ranks 25th nationally in identity theft. Even when the victim realizes what is happening, it costs $500 on average to fix the problem. "In the meantime, the consumer may not qualify for the best interest rate on a car loan, home mortgage or credit card because of the damage to their credit record," according to Consumers Union, which supports the bill.

Creating an optional security freeze is the least the Legislature can do. The law would still leave it up to individual consumers to seek protection, and no one could make the argument that it would hurt legitimate commerce.

[Last modified January 17, 2006, 01:25:19]