Equifax Waives Commission for Freezing a Loan for 30 Days
Another day, yet another attempt by Equifax to stem the tide of consumer anger following a giant hack that left up to 143 million personal data vulnerable. The company has now said it will waive the fees they charge for freezing your loan for 30 days * .
A credit freeze blocks your credit report until you give the credit agency permission to “unfreeze” your credit or publish the data. Thus, a thief trying to open a new line of credit using your personal information will not be able to do so while the freeze is in effect. However, as Lifehacker’s Christine Wong points out, the freeze can’t stop a thief from charging on an existing line of credit .
Given Equifax’s disappointing series of bugs since the September 7 breach announcement, removing the loan freeze fee – which varies from state to state , but typically $ 5-10 – seems like the least they can do. You did not ask to do business with Equifax, and the disclosure of your details was certainly not your fault. Equifax also indicated that it will refund fees paid by people who signed up for the loan freeze as of September 7, but there is no information yet on whether the refunds will be automatic. And why are fees charged only for 30 days? This is also unclear.
But the fact remains: there are three main credit reporting agencies – Equifax, TransUnion and Experian. This free loan freeze offer only applies to Equifax, so there is nothing stopping anyone from opening a line of credit in your name with lenders that only use the other two agencies. To completely block your data, you also need to freeze loans at TransUnion andExperian , and at the moment pay fees at these agencies.
Ron Lieber of the New York Times asked Equifax why they don’t just pay for freezing at all three reporting agencies for those affected by the breach, and also why freezing and thawing loans is worth the money to start with. It’s incomprehensible why freezing and thawing is not free indefinitely for those whose personal data has been compromised.
Should you freeze your loan? Unless you plan to apply for a new line of credit or take out a loan. If you want, for example, to rent an apartment or buy insurance, you need to temporarily cancel the freeze, the cost of which, again, depends on the state and, by law, can take up to three days . Equifax’s website dedicated to this incident is rather weak – see our credit freeze guide for more information.