Free Credit Freezes and Alerts

Summary#

• This bill changes Nova Scotia’s Consumer Reporting Act to add new tools to protect your credit file. It lets you place a free “security alert” or “security freeze” with credit report companies (like Equifax and TransUnion).

• The goal is to help stop identity theft and give you more control over who sees your credit report.

• Key changes:

  • You can ask, in writing and at no cost, for a security alert (company must notify you when someone asks for your report) or a security freeze (company cannot share your report with others).
  • Alerts must trigger a notice to you by phone or email within two hours of any request for your report.
  • A freeze blocks credit report sharing; the company must tell the requester a freeze is in place and not send the report.
  • You can put on, suspend, or remove an alert or freeze by written request. It stays in place until you change it.
  • Companies must verify your identity and have trained staff to explain how alerts and freezes work.
  • Companies cannot make you waive any rights to use these tools.
  • Court orders and certain disclosures already allowed by law are not blocked by a freeze or alert.

What it means for you#

• Consumers

  • You can add a free security alert to get quick warnings when anyone tries to access your credit report.
  • You can add a free security freeze to stop your credit report from being shared. This can help prevent new accounts from being opened in your name.
  • You choose how to be contacted for alerts (phone or email) and should get notice within two hours of any request.
  • If you plan to apply for a loan, credit card, phone plan, rental, or a job that needs a credit check, you may need to suspend or remove a freeze first. Build in extra time since changes must be requested in writing.
  • You will need to provide ID so the company knows the request really comes from you.
  • You can use both tools at the same time, and you can change or cancel them later, all for free.

• Victims of identity theft

  • A freeze can quickly block most new credit checks tied to fraud.
  • Alerts can help you spot and respond to suspicious activity fast.

• Lenders, landlords, and employers who use credit checks

  • You may see more freezes. If a file is frozen, you will be told a freeze exists and will not receive the report unless the consumer lifts it.
  • Expect some delays when applicants with freezes need to unfreeze their reports.

• Consumer reporting agencies (credit report companies)

  • Must offer alerts and freezes for free during normal business hours when requested in writing.
  • Must notify consumers within two hours of any request when an alert is active.
  • Must staff and train people to explain how alerts and freezes work.
  • Must not require consumers to give up legal rights to use these tools.

Expenses#

• No publicly available information.
• The law requires companies to provide alerts and freezes at no charge to consumers, which may create compliance costs for those companies. No direct fees to the public are authorized.

Proponents' View#

• Gives people strong, practical tools to stop identity thieves from opening new accounts.
• Fast, two-hour alert notice helps consumers act quickly if someone tries to access their credit.
• Free alerts and freezes remove cost barriers, so anyone can use them.
• Puts Nova Scotia in line with many other places that already allow credit freezes.
• Trained staff and ID checks make the process clearer and safer for consumers.

Opponents' View#

• Could slow down legitimate applications for credit, rentals, phones, or jobs when a consumer forgets to lift a freeze.
• The two-hour notice rule may be hard for companies to meet at all times and could increase their costs.
• Written request and “normal business hours” may make it harder to add or lift freezes quickly outside those hours.
• A freeze does not stop all types of fraud (for example, misuse of existing accounts), so expectations must be managed.
• More administrative steps for lenders and landlords could lengthen approval times.