Congress Eyes Thaw on Credit Freeze Bid

WASHINGTON – Continuing efforts to reform credit practices, the Democratic leadership of the House Financial Services Committee introduced a bill yesterday to allow consumers to ‘freeze’ their credit if they believe their credit reports are erroneous or the target of identity thieves. A similar bill died in the last Congress. The credit freeze bid, which has been passed in almost a dozen states, would not affect the ongoing use of credit cards or other existing lines of credit, but would prevent the opening of any new credit lines, according to Rep. Carolyn Maloney, D-N.Y., chairman of the Financial Services Committee’s subcommittee on Financial Institutions. The credit freeze “should be available to everyone and is the only means available to prevent wrong information from ruining your credit and helps prevent identity theft,” said Maloney during yesterday’s hearing on consumers’ ability to change or correct inaccurate information. Since taking control of the House and Senate committees the Democrats have introduced a variety of consumer credit bills, which also includes expansion of credit card disclosures and a ban on certain credit card practices; and proposals to reign in predatory mortgage lending.