Louisiana Adopts Identity Theft Law

July 23, 2004
Reported by Marty Briggs

Consumers have a new tool in the fight against identity theft, thanks to a recently adopted law.  It allows for something called a "security freeze," which will ensure that no one has access to your credit information without your permission.  State Attorney General Charles Foti says Louisiana is just the third state in the nation to approve such legislation.

Identity theft claimed 7 million victims in the United States last year alone.  "It's the fastest growing crime in the United States.  It's grown 160 percent over the past three years and 162 percent in the State of Louisiana," says Foti.

But thanks to the new "security freeze," that number is expected to drop significantly.  The law allows you to put a freeze on your information with the three credit reporting agencies:  Experian, Equifax and TransUnion.  "To freeze your credit report means that you don't have any problems. You then freeze it, no one else can access it."

Suppose you're buying a new house or automobile?  You'd contact the three agencies and let them know that lenders and mortgage companies may be contacting them about your credit.  After that, the security freeze goes back into place.  "Statistics have shown that the average person that has had their identity taken, it costs them over $1,500 just to try and get their name back.  It costs businesses billions of dollars.  So we think this is a very proactive way to tackle the problem.  We'll be working closely with the local sheriff's and DA's, Better Business Bureau's, and consumer advocacy groups to publicize it."

Foti says that the new law also allows government agencies access to your information.

The identity theft law goes into effect July first of next year.  The security freeze will cost you $10 per agency, and each time you "lift" the freeze, each agency will charge you $8.  Once again, the three agencies are:  Experian (800) 685-1111; Equifax (888) 397-3742; and TransUnion (800) 916-8800.