New Protections For Elderly Against Identify Theft Announced

PROVIDENCE, RI — One of the biggest fears for loved ones of elderly relatives is that relative becoming a victim of financial exploitation, identity theft or fraud. Rhode Island Attorney General Peter Kilmartin Tuesday announced new federal laws that let some financial caregivers request a security freeze on behalf of a loved one.

According to the attorney general's office, security freezes, also known as credit freezes, restrict access to your credit file, making it harder for others to open new accounts in another person's name. As of Sept. 21, anyone can freeze and unfreeze their credit file for free for one year.

The new law also lets people with certain legal authority to act on someone else's behalf to freeze and unfreeze their credit file. The new law defines this "protected consumer" status as an incapacitated person, someone with an appointed guardian or financial caregiver, or a child under the age of 16.

"Many instances of financial exploitation include a person opening up credit cards or using the credit file of another for personal gain and identity theft," Kilmartin said. "This added layer of protection will allow a guardian or financial caregiver the ability to better safeguard the older person from being taken advantage of by a stranger or even someone they know and thought they could trust."

According to the attorney general's office finanical caregivers must give the credit reporting agencies proof of authority before they can freeze and unfreeze the protected consumer's credit. Proof of authority includes:

• A court order (such as an order naming you guardian or conservator)
• A valid power of attorney
• Proof of your identity, which can be your Social Security card, your birth certificate, or your driver's license or other government issued identification.

How does the freeze work?

• Contact all three of the nationwide credit reporting agencies: Equifax , Experian and TransUnion.
• If you request a freeze online or by phone, the agency must place the freeze within one business day.
• If you request a lift of the freeze, the agency must lift it within one hour.
• If you make your request by mail, the agency must place or lift the freeze within three business days after it gets your request.

The new federal law also reinforces Rhode Island's existing law that prohibits consumer reporting agencies from charging consumers a fee for a credit freeze. Previously, consumer reporting agencies were allowed to charge up to $10 for a credit freeze.

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