Financial Privacy & Security News

HARRISBURG—Yesterday Senate Bill 180 passed out of the Pennsylvania Sate Senate Committee on Banking & Insurance and was given its first consideration on the Senate floor. Its second consideration is scheduled for today. SB 180, sponsored by Senator Jake Corman (representing parts of Centre, Mifflin, and Perry counties), would give consumers the ability to proactively freeze access to their credit reports.

“A security freeze is an efficient and sensible way to protect Pennsylvanians before they become victims,” said Jim Swoyer, a Public Interest Advocate with the Pennsylvania Public Interest Research Group (PennPIRG). “Simply stated, it is the single most effective tool consumers can use to prevent identity theft.”

Security freezes allow consumers to prevent anyone from looking at his or her own credit reporting file for the purposes of granting credit unless they authorize a particular business to do so. When an imposter seeks credit in a consumer’s name, the creditor checks the credit reporting file. If the file is frozen, the creditor will deny the thief’s credit application. Consumers legitimately applying for credit can lift the freeze so particular creditors can see their files. When the consumer is not seeking credit, the security freeze effectively prevents anyone else from getting credit in the consumer’s name.

“We applaud Senator Corman for his leadership on identity theft,” continued Swoyer, “It will be a huge victory for consumers statewide if his legislation becomes law. We urge the Senate to pass this important bill.”

The Pennsylvania Public Interest Research Group (PennPIRG) is a non-profit consumer advocacy group representing 3,500 citizen members across the state. PennPIRG has offices in Philadelphia and Harrisburg. For more information, visit www.pennpirg.org.