If one locks down their credit reports what happens when these crditors like AMEX who like to snoop so they can raise interest rates, reduce credit lines etc? Could this be a good way to prevent a Universal Default?
I don't believe that a freeze applies to account reviews, but I'm not positive. I would think that if the creditor can't get any information, the next step would be to just close your account.
Hedwig is correct. Credit freezes block new accounts, but they do nothing for already existing accounts.
Agreed to both above. A "credit freeze" essentially freezes the CRA from releasing information for a new account until you authorize the release. An "account review" by an established account would still be viewed as permissible. If you read your terms & conditions for your CC account, you will see that you have agreed to this type of periodic review.
No, it would not prevent CAs from making inquiries. CAs do have a "permissible purpose" under the FCRA. Again, the intent of a credit freeze is to combat identity theft, hence the need to approve a review.
And, keeping them from accessing your credit report might lead them to file a lawsuit immediately. They could then access all of the information during discovery.
