CUNA Mutual Group Risk Alert: Member Credit Freezes Create Credit Union Challenges

In response to a broad-reaching breach at one of the major consumer reporting agencies, several sources have encouraged affected consumers to freeze their individual credit accounts to prevent the potential for identity theft fraud.

A credit freeze prevents unauthorized creditors from accessing a member's consumer credit report. It also prevents credit, loans, and services from being approved in a member's name without their knowledge or consent.

While this can successfully prevent fraudulent access to a member's credit file, it can also affect the member's ability to apply for legitimate credit; creating challenges for the credit union's ability to underwrite and approve loans for members.