New law lets consumers 'freeze' and 'thaw' credit for free
ROANOKE, Va. – Consumers will now have an easier way to guard their credit, thanks to a new law that will go into effect next week.
The new law will require the three nationwide credit reporting agencies -- Experian, Equifax and TransUnion -- to allow people to "freeze" and "thaw" their credit for free.
A credit freeze prevents a credit reporting agency from releasing a person's credit score while the freeze is in effect, which prevents new credit from being issued in the person's name.
The new law, the Economic Growth, Regulatory Relief and Consumer Protection Act, went into effect on Friday.
"This law will make freezing and thawing your credit much simpler," stated Julie Wheeler, CEO of the Better Business Bureau Serving Western Virginia. "This can be a powerful tool to fight identity theft, and we at the BBB believe it will help protect consumers on a regular basis."
Consumers will still have to place a freeze at each of the three credit bureaus, but each bureau will have an online portal that will make the process much simpler.