Identity theft is a big problem. It becomes even more problematic when fraudsters use your personal information to borrow money or obtain credit cards under your name.

Fortunately, thanks to the provisions of the Credit Reporting Actentered into force on 1^ah Quebec residents now have the option to freeze their credit reports.

This maneuver allows you to temporarily block the transmission of your information held by the main credit bureaus (Equifax and TransUnion) to any company or person who wants to see your credit file.

If someone tries to borrow under your name while you are frozen Your credit file, the loan cannot be approved because it is not possible to access your credit information.

Also Read: Law 53: More Protection Against Fraud

cohow to freeze or unfreeze a credit file

You can check your credit freeze online or over the phone. The procedure is very similar for the two large credit bureaus. Attention ! Schufa websites offer you many paid options for obtaining various information services. The locking and unlocking process described below is a free service.

Equifax

1. Sign in to your account Click this link or by creating an account.

2. From the Equifax Dashboard, under the Equifax Credit Report Status section, click manage blocking “.

3. Click ” Lock out “.

4. A confirmation page appears with a green check mark.

5. “Your Equifax credit file is on hold” should then appear in the Credit File Status section.

transunion

1. Go to the website Online Consumer Solutions TransUnion. Avoid the commercial website (https://members.transunion.ca/) intended for selling services. Sign in or create an account (it’s easy).

2. Select the option ” Manage your credit lock “.

3. Click ” Keep going to confirm your identity.

4. On the balance freeze page, click “ Freeze “.

5. Answer Yes to the confirmation request.

To release your credit report, just follow the same path and click ” Unlock at Equifax and thawing at TransUnion.

Please note that updating your online file may take a few minutes to a few hours. It is therefore better to plan for this delay if you intend to take out a loan on the same day. You must also remember to release your credit report each time you complete a transaction that requires a credit check.

Frozen yes, but for whom?

Once blocked, credit bureaus will not be able to provide information about your credit report if:

• A request for a loan, credit card, or line of credit;

• increase in credit limit;

• A long-term rental contract, for example for a car;

• An installment plan, for example for a mobile phone contract.

However, some financial institutions can view your file even if you have activated the block, for example to open a bank account with no associated funds or a wealth management account.

Despite the blocking, other people can also have access to your credit data, e.g. e.g.:

• Employers and recruitment agencies as part of a pre-recruitment survey, if consultation of this information provides elements relevant to recruitment and you have given your consent;

• Government agencies as part of a pre-employment investigation (with the same nuances as noted above) to verify your eligibility for certain benefits to collect debt or a student loan;

• A landlord who wants to check your creditworthiness before signing a lease;

• collection agencies;

• Insurers for the purpose of providing home or car insurance.

Protect your personal information

On its website, Equifax advises that lenders can still make credit decisions about you without requiring access to your credit report and may also rely on information previously requested when your credit report was accessible. So, the credit freeze acts as another door lock blocking the way for scammers, but it is not the solution to all ills.

The Canadian Anti-Fraud Center reports that reports of identity theft cases increased by 45% between 2020 and 2021 and that personal information theft is the second most common fraud in the country.

Identity theft is made easier by the growing popularity of digital tools and services. Scammers use the apps installed by default on smart devices, among other things, to invade your privacy.

For example, in order not to be tricked, you can disable the geolocation function of your phone, which tracks you everywhere, or change its settings.

You can also use a virtual private network (Virtual Private Network or VPN) to protect your personal data when surfing on public networks.

Another option: adjust the settings of your favorite voice assistant so that it cannot spy on your private conversations. Caution is required in all situations so as not to be an easy target for scammers!

Also Read: Check Your Credit Reports and Credit Bureaus: What Power Do They Have Over Your Life?