Could freezing your credit history really help you

In the US there has been a law in over 40 states that customers can freeze their credit history whenever they like in order to stop fraudulent use of their account.

By freezing the account, lenders then know that if any applications are made to get credit from that account then it is not the owner and it is for fraudulent use.

It is a law which is now being considered in the UK, but some experts say that it would only add extra protection to banks and not to consumers.

It is thought that banks and credit card providers have long tried to put the blame of fraudulent accounts onto consumers. This is because currently they are held responsible for any fraudulent actions that occur.

With the new law they would be better protected and they would be able to get out of paying the consumer any money that they have lost. So it is certainly not considered to be a good move by many people.

So what would it mean for you, the consumer? Well it would mean that if you suspect something is going on with your account then you would have to freeze it. It would not be up to your bank or your credit card provider – you would have to know when to freeze the account.

If you don’t and a fraudster gets hold of your details then you would be seen as liable for that and the credit card provider or the bank would not have to pay you anything back.

This means that you will have to freeze the account if you lose your credit card or if it is stolen. You will also have to freeze the account if you even suspect that anybody has been able to get hold of your details.

It is a lot of pressure and whilst at first it may seem good because you have a better control of your account, you will soon realise that it is not all that it is cracked up to be and if anything the banks are profiting more from the law than you are.