Freeze Your Loan Instead of Messing Around With the New Equifax App
Equifax has a new app ( iOS , Android ) that makes it easier to block and unblock access to your credit files, which is one of the measures the company has taken to save face after a security breach left 145 million people financially vulnerable last year. fraud. and identity theft. But you’re probably better off just freezing your loan than fiddling with the company’s new offering.
The New York Times has a detailed post on how long it can take to get the app set up (if you can at all). I tried to register, but I was unable to verify my identity, so I wait a few days for them to send me a verification code (I could try calling them, but I value my time a lot more than that). It may be surprising for people who are trying to figure out if they have become victims of hacking on the website of Equifax, or subscribe to his service TrustedID of Premier , both of these services were incorrect “services” that are no longer irritated consumers than bring real benefits.
However, what I’ve learned makes me doubt how useful it really is. Of course, this only works for access to your Equifax report – there are two other agencies (Experian and TransUnion) that you will have to block as well. In addition, there are all blocking exceptions: Equifax Global Consumer Solutions, federal, state, and local government agencies, companies considering your job application, companies you already have a relationship with, collection agencies, fraud detection services, and companies. … who want to make you a pre-approved loan or insurance offer.
Another reason: The credit freeze is simply an agreement between you and Equifax, according to Consumer Reports , that can change at any time, while the credit freeze legally guarantees your accounts are protected.
“Having a contractual agreement is not nearly as strong as having legal protection,” Cristina Tetro, a staff attorney for the financial services group at Consumers Union, told Consumer Reports. “The contract may be unclear, may include clauses that allow the other party to change it, or clauses that you might be better off not agreeing to, such as an arbitration agreement.”
The Times notes that the app’s user agreement says it can change the agreement at any time (although it says it won’t have an arbitration agreement, unlike its TrustedID Premier).
On the other hand, if your accounts are fraudulently accessed while your credit is blocked, you are protected from financial liability under state law.
The downside here is convenience: it’s harder to undo the hang, so Equifax is pushing locks. Unfreezing your accounts takes a few days and you need to be aware of it.
The cost of freezing a loan also varies by state. But as Consumer Report points out, it will likely be cheaper than blocking a loan. This is because while TransUnion and now Equifax offer free locks, you have to pay to lock your Experian credit (that’s $ 4.99 for the first month, then $ 24.99 per month). And blocking two out of three reports doesn’t really do much.
Two Cents has all the details on the credit freeze here :
The process of freezing your report is pretty simple, but unfortunately, you might have to pay between $ 5 and $ 10 to freeze your report at each bureau. Here’s where you can sign up for a freeze at each of the three major credit bureaus:
You can also call them:
- Equifax: 1-800-349-9960
- Experian: 1-888-397-3742
- TransUnion: 1-888-909-8872
Therefore, if you want to be as secure as possible, freeze your loan. You will lose comfort, but you will most likely come out ahead.