Indiana Laws on Credit Freezes

Those living in Indiana may want to limit access to their credit files with credit freezes, which also are known as security freezes. People who request that credit bureaus place freezes on their files also need to manage their credit information to ensure it's available to lenders and creditors if they apply for new accounts. There are, however, situations in which credit freezes can be overridden.

Credit Reports

Indiana residents have the right to prevent credit reporting companies from releasing information in their credit files to others by placing a credit freeze on their files. A freeze generally prevents the release of credit reports without the person's authorization, but there are circumstances in which freezes are invalid. For instance, your current creditors can view your credit information even if you place a freeze on your files. People who have delinquent accounts also can't keep a debt collection company from requesting their credit reports if the company is attempting to recoup money owed on a debt.

Fraud Prevention

Some Indiana residents place security freezes on their accounts because they're victims of fraud or because they're trying to avoid becoming fraud victims. Security freezes can prevent a thief from getting credit and loan accounts in your name because new accounts can't be opened without your approval. Even so, the Experian credit reporting company notes on its website that security freezes also can delay the approval of new accounts you want to open yourself. People who request security freezes receive personal identification numbers (PINs) they can use to temporarily lift a freeze at credit bureaus prior to applying for new credit and loan accounts. It could take up to three days for a temporary credit freeze lift to take effect.

Identity Verification

To verify identities before granting requests, credit reporting companies require personal information from those in Indiana seeking credit freezes. For example, Experian requires that people provide their current mailing address along with their previous addresses for the past two years. Applicants also must provide their Social Security numbers and date of birth. Experian notifies consumers when their security freezes have been issued and supplies them with PINs with which to temporarily lift or remove freezes. A person in Indiana who forgets his PIN has to resubmit all personal information to get a replacement PIN.

Fees

Credit bureaus can charge consumers a fee to issue, lift or remove their security freezes. The website of the TransUnion credit-reporting company indicates, however, that all such services are free of charge in Indiana. In any case, consumers must submit their requests for freezes to the three national credit reporting companies separately. Those companies are Equifax, Experian and TransUnion.