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| Contact: Deborah Sturm Rausch (518) 473-9472 | For Immediate Release: February 6, 2008 |
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The NYS Consumer Protection Board Holds Security Freeze Hearing |
| The New York State Consumer Protection Board (CPB) held a public hearing
on Security Freeze on February 6, 2008 at the Empire State Plaza in Albany,
where consumers and advocates, industry representatives, state and local
government officials, and other interested parties offered comments on New
York’s Security Freeze Law under which NY consumers have the ability to
freeze their credit reports.
“The high incidence of identity theft shows it is a significant issue in America,” said Mindy A. Bockstein, Chairperson and Executive Director of the NYS Consumer Protection Board. “New York State’s Security Freeze Law provides an effective free or low-cost method for consumers to prevent unauthorized parties from accessing their credit history. With changes in the law, this year it takes even less time to freeze your credit report. That is good news for consumers, especially for victims of identity theft who need to protect their personal and financial status from further harm.” Under NYS General Business Law, Section 380-t, the CPB is responsible for monitoring the technology utilized to lift a Security Freeze from a consumer’s credit line, and receives hundreds of identity theft-related queries annually. Nationally, New York State is 8th per capita in identity theft complaints. Between January and December 2006, the Federal Trade Commission (FTC) reports the total number of identity theft and fraud complaints received at 674,354, 36% of which or 246,035 were identity theft complaints. The amount of money reportedly paid to scammers by consumers in connection with these complaints totaled a whopping $1,187,305,506 in 2006, up from $683,484,366 in 2005! New Yorkers have the ability to place a Security Freeze on their credit reports, which will help prevent the unauthorized opening of a new credit or bank account. However, according Eric Ellman, Vice President and Counsel of State Government and Federal Regulatory Affairs of the Consumer Data Industry Association, who testified today, only about 27,000 freeze files have been created by New Yorkers. Under recent changes to New York’s Security Freeze Law, credit bureaus are now required to place a freeze on credit reports within four days of receipt of written consumer requests. The law changed, effective January 1, 2008, reducing the time from five to four days for credit reporting agencies to place a Security Freeze on a consumer’s credit report. New York’s Security Freeze Law enables consumers to prevent their credit history and information from being released or even viewed without their prior and specific consent. There is no charge for a New York State resident to place a Security Freeze on their credit report if the consumer is a victim of identity theft or it is a first request. For second or subsequent requests for a Security Freeze, a consumer may be charged up to $5. New York Public Interest Research Group’s (NYPIRG) Legislative Counsel, Russ Haven presented testimony saying, “New York should revise the law to require only minimal fees for placing subsequent freezes or thawing a freeze; and require that freezes be lifted by PIN within 15 minutes to make freezes more attractive and mete the concerns of retailers and other businesses.” Ted Potrikus, Executive Vice President of the Retail Council of New York State, reported there have been no difficulties connected to New York’s Security Freeze Law from the retailers’ perspective. William Ferris and Jim Mitchell, representing AARP, highlighted a study conducted by AARP of selected states, including California, Connecticut, Louisiana, Maine, Nevada, New Jersey and North Carolina, regarding consumer awareness of security freezes. The study concluded that: 1) “Consumers are concerned about becoming an identity theft victim…, 2) Most older consumers are not aware of security freezes…, and 3) Older consumers face a number of other barriers to using a security freeze.” Detailed information about identity theft, Security Freeze Law, fraud alerts and other important consumer information may be found on the CPB website at: http://www.nysconsumer.gov//. The Consumer Protection Board, established in 1970 by the New York State Legislature, is the State's top consumer watchdog and think tank. The CPB's core mission is to protect New Yorkers by publicizing unscrupulous and questionable business practices and product recalls; conducting investigations and hearings; enforcing the Do Not Call law; researching issues; developing legislation; creating consumer education programs and materials; responding to individual marketplace complaints by securing voluntary agreements; and, representing the interests of consumers before the Public Service Commission and other State and federal agencies. To file a consumer complaint with the NYS Consumer Protection Board (CPB), call our toll-free hotline at 800-697-1220 or visit CPB’s website at www.nysconsumer.gov. In addition to the online complaint form, the website is home to important consumer safety information. To join the CPB’s Do Not Call Reminder list, send an e-mail to CPB's Do Not Call Reminder list |