9 October 2007
A campaign group has proposed that laws should be reformed to afford credit card users with extra identity protection.
The National Identity Theft Assistance Centre (NITAC) says that a so-called 'freeze law' should be introduced, which would automatically block banks accessing customers' credit histories.
Currently, banks routinely check credit reports whenever an account is opened with them - a practice which NITAC and other anti-fraud groups claim puts consumers in danger from fraudsters.
Should the law be introduced, only a customer password would unlock the history to be viewed - and even then, it would only be temporarily accessible.
NITAC head Barry Stamp said: "This law would act as a last line of defence for consumers if other sensitive personal information, such as date of birth and national insurance numbers, had already fallen into the hands of fraudsters."
The Guardian reports that 'freeze laws' have already been introduced in four-fifths of US states - where the legislation has faced some criticism for slowing down the application process for credit cards.
Mr Stamp commented: "A few days' delay in applying for credit, for those worried about identity fraud or for those who have already fallen victim, is a small price to pay for the peace of mind that most fraudsters are unable to open up new credit accounts in your name."
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