CHIPS Articles: New Credit Alert Available for Active Duty Personnel

Identity theft is a growing crime in the United States. Consumers, including non-active duty personnel, can take various actions to minimize the risks of identity theft including checking credit reports regularly and keeping track of monthly bills.

Active duty personnel who are away from their regular duty stations are less able to take these steps, so they can be particularly vulnerable to identity theft. To enable personnel on active duty and activated reservists to devote their attention exclusively to the defense needs of the nation, Congress recently created a new tool to help guard against identity theft: the active duty alert.

Active Duty Alert

The active duty alert is a statement that is placed in the credit file of an active duty military consumer so that anyone checking the file for the purpose of establishing or extending credit is informed that the person is on active duty and the identity of the person requesting credit must be verified before the request can be granted.

The active duty alert is part of the Fair and Accurate Credit Transactions Act of 2003 (FACTA), which amends the Fair Credit Reporting Act (FCRA). Congress designed this alert as a protection for those deployed in locations or situations in which they are unlikely to be able to apply for credit or monitor their financial accounts. (For more information about FACTA and FRCA, go to http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_public_laws&docid=f:publ159.108 and http://www.ftc.gov/os/statutes/031224fcra.pdf, respectively.)

Under FACTA, if you qualify as an active duty military consumer, you can place an active duty alert in the credit file maintained on you by nationwide consumer reporting agencies. You may also designate a personal representative to place or remove the alert for you. The alert lasts for 12 months, but if you receive an extended deployment, you may place another active duty alert after the first one expires. You may cancel the alert at any time by contacting one of three credit reporting agencies (CRAs): Equifax, Experian and TransUnion. (See the text box below for contact information for the CRAs.)

To place an active duty alert, you or your personal representative may contact one of the three CRAs, and tell them you want the alert placed in your file. You or your representative will be asked to provide certain personal information as proof of your identity, such as your Social Security Number, name, current address (and most recent previous address if you have been at your current address for less than six months) and other personal information. Be sure to keep this information current for the duration of the alert.

Once you have requested an active duty alert from one of the