AARP supports credit security freeze legislation

PHOENIX—AARP Arizona is supporting legislation at the State Capitol that would allow consumers to put a credit security freeze on their line of credit in the event they have become a victim of identity theft.

Currently, Arizona is No. 1 in the country for identity theft with the Federal Trade Commission estimating that 27.3 million Americans have been the victims of identity theft in the past five years.

This type of fraud has resulted in billions of dollars in losses for businesses and consumers alike.

“AARP Arizona supports SB1345, a bill working its way through the Legislature that would allow consumers to proactively place a security freeze on their credit report to prevent financial fraud resulting from identity theft,” said Lupe Solis, AARP Arizona associate state director of advocacy, in a news release.

“However, while AARP believes that consumers should be allowed to put a security freeze on their line of credit for a fee of $5 or less, this legislation does not yet define what the so-called reasonable fee would be for consumers to place a freeze on their line of credit.”

Similar credit-freeze legislation was opposed by AARP last year because it had called for consumers to pay $90 to place a freeze and to lift a freeze from their personal credit line.

“We think this year’s bill is headed in the right direction but we would like the legislation to define what is reasonable in regards to the fees consumers would have to pay to put a credit freeze on their line of credit,” Solis added.

The growing concern about the prevalence and impact of identity theft on consumers has resulted in numerous legislative actions across the country to protect people against identity-theft crimes.