A bill that provides more protections for consumers that have their credit stolen became law recently. Senate File 2177 expanded options for consumers to get a security freeze, which is a notice placed in the consumer’s credit report that prohibits releasing the consumer credit report or score for the opening of new credit.
The new law comes after hundreds of thousands of Iowans had their private financial information compromised in security breaches at Equifax, Home Depot, Target, and more. The bill prohibits fees for placing, removing, suspending, or reinstating any security freeze. The bill also requires any consumer reporting agency that receives a request for a security freeze to do their best to inform the consumer of the contact information and method to receive a similar freeze from any other consumer reporting agency. There are also procedures to expedite the receipt and processing of security freezes.
The bill was supported by the Attorney General’s Department of Justice, AARP Iowa, League of Women Voters of Iowa, Iowa Organization of Victim Assistance, and the Iowa Credit Union League.