CFPB Confirms Credit Freeze Status at TransUnion and Equifax

The Consumer Financial Protection Bureau confirmed that federal law allows guardians, conservators, or power-of-attorney holders to place a free credit freeze at Equifax and TransUnion. This security freeze prevents prospective creditors from accessing a consumer's credit file, which makes it difficult for new accounts to be opened in a person's name. The Consumer Financial Protection Bureau notes that this freeze is a legal right, and existing accounts remain operational.

The ability to freeze credit is a legal tool designed to mitigate financial losses resulting from identity theft and scams. By blocking access to credit files, the freeze makes it harder for unauthorized parties to open new credit cards or loans in a victim's name.