Do warnings or credit freezes do anything?

Alerts and credit freezes are two ways to fight fraud. They have advantages and disadvantages.

In 2019, Desjardins suffered a massive data breach: 9.7 million users were affected. The firm quickly offered credit alert coverage to its members on Equifax for five years (until the end of this year).

In fact, a few weeks ago, Desjardins had the option to consult your credit file at TransUnion and Equifax, under the “My Credit Score” menu in its AcèsD application. Members can also receive alerts from TransUnion, but not from Equifax. Other financial institutions offer this service.

Are the warnings useful? Every time you apply for credit with a potential lender (apartment rent, cell phone, new credit card, furniture financing, car loan, insurer, etc.), the latter consults your credit file at Equifax and TransUnion. A fraudster will do the same if they try to open an account or complete a transaction (get a loan or buy a house) in your name. Hence the alert.

Not great

“Warnings are not miracles,” commented Sylvie de Bellefeuille, a lawyer at Option Consumatures. This prevents someone from impersonating you, but they often have your personal information. In my opinion, it is better to ask for a freeze [ou verrouillage] His credit report.”

Introduced only in Quebec in February 2023, it allows you to freeze and unfreeze your file at Equifax and TransUnion for free. Once the freeze is in effect, anyone applying for credit in your name will be denied access to your file.

Inconvenience: Any credit request will also be blocked (card or line of credit, personal loan, long-term rental, cell phone, “buy now and pay later” type transaction, credit limit increase).

“If you're shopping for something on credit you should lift the freeze,” continues Sylvie de Bellefeuille.

On the other hand, employers, collection or employment agencies, governments, homeowners and insurance companies still have access to your credit file.

A freeze has no effect on your credit score. And the only person who can freeze or unfreeze your file is you.

In conclusion: it is easy to redirect to paid subscriptions on the Equifax and TransUnion sites, since you need to register on these sites (except in Desjardins: you access it through the “My Credit File” menu » in AcèsD). If you're asking for your credit card, you're in the wrong place. If you're not sure, do it over the phone.

advice

• · How to freeze and unfreeze your file? Equifax at: 1-800-828-5961. At TransUnion: 1-800-663-9980. Online or on your phone: At Equifax, you must select the “Credit File Status” and “Manage Lock” menus. At TransUnion, click “Manage Your Credit Freeze.”
• · Reading about credit freezing At Equifax And In TransUnion.
• · From the reading of the Financial Markets Authority Credit file.