NEW FEDERAL FILE FREEZE REGULATIONS

---

Federal Regulation Updates
US Bill 2155 was signed into law on May 21, 2018. This law has several components, the most pressing of which requires that all Freezes, Thaws and Lifts to a credit file be free of charge to the consumer as of 09/21/2018. It also requires that the initial 90 day Fraud Alert messages remain on a consumer’s report for one year.

What’s Changing?

Federal File Freeze Fees
For every state in the United States, there will be no charge to a consumer to set a Freeze, request a Thaw (temporarily remove the freeze), or a Lift (permanently remove the freeze) from his credit file, effective 09/21/2018.

Fraud Alert Retention
Initial Fraud Alert retention will be changed from 90 days to one year. Clients should be aware of this change in retention in case they need to modify their own internal systems. On-file Initial Alerts that have not expired will be extended to one year.

Consumer Statement Types 26 and 27 will be modified as shown below:
26& [Date] [Subcode] ID Security Alert: Fraudulent applications may be submitted in my name or my identity may have been used without my consent to fraudulently obtain goods or services. Do not extend credit without first verifying the identity of the applicant. This Security Alert will be maintained for 1 year beginning MM-DD-YY.

27& [Date] [Subcode] ID Security Alert: Fraudulent applications may be submitted in my name or my identity may have been used without my consent to fraudulently obtain goods or services. Do not extend credit without first verifying the identity of the applicant. I can be reached at XXX-XXX-XXXXEXTXXXXX. This Security Alert will be maintained for 1 year beginning MM-DD-YY

Permissible Purpose for Employment and Insurance
The new Federal Regulation allows access to all frozen files for Employment or Insurance purposes.

Are Technical Changes Required?
No Freeze or Lock technical changes are required by clients by the 9/21/2018 date. Client should continue to submit their inquiry requests using all applicable keywords and consumer supplied PINS as they do currently.