The "Credit Freeze for Kids Act" amends the Fair Credit Reporting Act to allow guardians to easily place free security freezes on credit reports of children and other protected consumers.
Margaret "Maggie" Hassan
Senator
NH
The "Credit Freeze for Kids Act" amends the Fair Credit Reporting Act to streamline and simplify the process of placing security freezes for protected consumers, such as children. It mandates that consumer reporting agencies place these freezes free of charge within three business days of a request, and requires them to notify other agencies, who must also implement the freeze within three business days. These changes will become effective 18 months after the Act's enactment.
Free Credit Freezes for Kids and Vulnerable Adults Coming: 'Credit Freeze for Kids Act' Sets 3-Day Deadline
The "Credit Freeze for Kids Act" is stepping in to shield kids and protected adults from identity theft by making credit freezes free and fast. This bill amends the Fair Credit Reporting Act, so let's break down what that means for you and your loved ones.
Protecting the Vulnerable
This bill is all about safeguarding the credit of "protected consumers" – think kids under 16 or adults who have guardians or conservators. If someone's responsible for their finances, they can now request a security freeze on their credit report, and the credit bureaus (like Experian, Equifax, and TransUnion) have to comply – and fast.
Speedy Freezes: 3 Days Max
Here's the kicker: once a representative (like a parent or legal guardian) asks for a freeze, the credit reporting agency has just three business days to put it in place. And it's free. No more paying fees to protect someone from fraud. If the request is made by phone, secure electronic means, or even mail, the clock starts ticking. (SEC. 2)
The Domino Effect
It gets better. Once one credit bureau gets the request, they have to notify all the others within three business days. Then, those other bureaus also have three business days to slap on the freeze. This means full protection across the board, and it's all designed to happen within a week. (SEC. 2)
Real-World Impact
Imagine a parent, Sarah, who wants to protect her 10-year-old, Alex, from identity theft. Under this new law, Sarah can contact any of the major credit bureaus, provide some ID and proof she's Alex's mom, and request a freeze. Within three days, Alex's credit file is locked down, preventing anyone from opening new accounts in his name. That protection stays in place until Sarah decides to lift it.
The Catch? We Wait.
The only downside? This all kicks in 18 months after the bill is enacted. That's a year and a half where protected consumers are still a bit more vulnerable than they will be. (SEC. 2) It's a trade-off – time for the credit bureaus to update their systems versus immediate protection.
The Bottom Line
The "Credit Freeze for Kids Act" is a solid step toward protecting those who can't protect themselves. It streamlines a crucial security measure, making it quicker, easier, and free for guardians to safeguard the financial futures of the people in their care. While the 18-month delay is a bummer, the long-term benefits are clear: less identity theft, more peace of mind, and stronger financial security for vulnerable individuals.