Tennessee Credit Freeze Laws

A credit freeze prevents release of information on a person's credit report without his authorization, and is an action people may take to prevent or respond to identity theft. A credit freeze requires a lender or creditor to contact an applicant to verify his information prior to granting credit. Failure to verify the applicant's identity results in denial of credit. In 2007, the state of Tennessee signed the Credit Security Act to allow residents to freeze their credit files and prevent identity thieves from using their information to commit fraud. The bill became law January 1, 2008. Tennessee joins 47 states that currently have credit freeze laws in place (as of July 2010).

Provisions

A credit or security freeze allows Tennesseans to block access to their credit files, making their credit files inaccessible should an identity thief attempt to open a fraudulent account. Under the law, residents are allowed to lift a credit freeze for 15 minutes to make a large purchase, such as a car, open a new credit account or buy insurance. Social Security numbers are not allowed to be publicly displayed by business or non-profit agencies nor printed on membership cards.

Requesting a Credit Freeze

Consumers may submit a written request to the credit reporting agency (CRA) via certified mail or electronically via a secure method. A freeze can be placed on a credit report free of charge to victims of identity theft if they provide a copy of a police report. All others are charged a $7.50 set-up fee and $5.00 for removal of the freeze. There is no fee to temporarily lift the freeze.

Duration

The freeze goes into effect three business days after the CRA receives the request and remains permanent until the consumer requests removal. The CRA sends a confirmation letter containing a PIN to the consumer no more than 10 business days after the freeze becomes effective. Requests for a temporary lift are done by the method determined by the CRA, which can be either phone, fax or online. Consumers must provide the proper identifying information, PIN and the time their credit report is to be accessible. By law the freeze must be lifted within 15 minutes via secure electronic method if the request is received between 6:00 a.m. and 9:30 p.m.

Access

Consumers may still get a copy of their credit report even if it is frozen. Information on frozen credit reports may still be released to government agencies that have a court order or subpoena or are collecting child support or income taxes. Collection agencies may also get access to review and collect on an account.