Starting today, people can block access to their credit records if they are worried about Social Security numbers and other personal information being used by thieves to make purchases, get credit cards or pay utility bills.

The law is designed to ease a problem that carries a national cost of $48 billion a year for businesses and $5 billion for consumers, according to Consumers Union, an independent, nonprofit testing, information and advocacy group that also publishes Consumers Reports. And the dollar amount doesn't measure the hassle and grief associated with identity theft.

James "Junior" Phillips of Greenville said freezing his credit reports would have helped him when a Baltimore man with a similar name bought an SUV and took out bank loans using Phillips' Social Security number.

"That would have been huge," Phillips said of the opportunity to shield his credit records. Phillips, who works at a car dealership, spent countless hours writing and calling companies to repair the damage done by the fraudulent use of his identity that started in 2000, went through a lull, then picked up again this year.

Phillips figures the thief ran up about $70,000 in purchases under Phillips' name.

"I wanted to throw up my hands," he said. "It causes havoc to your life."

Phillips went to a lawyer for help and last month signed up with a commercial service that sends him an e-mail message when anyone checks his credit report.

Idea is catching on

North Carolina is one of a handful of states to allow anyone, even people who have not been victims of identity theft, to freeze their credit reports. California, which has had such a law for two years, was the first.

"The freeze is a very effective prevention strategy if you have an aggressive identity thief," said Beth Givens, director of Privacy Rights Clearinghouse, a California nonprofit consumer advocacy group.

She recommends freezes for identity theft victims or people who believe their Social Security numbers have been stolen.

"It basically enshrines your credit report in a kind of a fortress," she said.

The identity theft protection is one of about 40 new state laws taking effect today.

The law allows consumers to tell national credit bureaus to forbid potential creditors from checking their reports. When creditors cannot get access to the reports, they deny approval for credit, thwarting potential thieves from using someone else's personal information.

People who have not been identity theft victims must send each of the three national credit bureaus certified letters and $10. The credit bureaus can charge up to $10 for consumers who want a "thaw" when they legitimately seek a loan or new credit.

Use of law encouraged

Attorney General Roy Cooper hopes for wider use of security freezes in North Carolina. The protection isn't just for victims, he said. "We want people to think much more broadly about this issue and use it as a preventive measure," he said.

Cooper said he is going to seek freezes for himself and his two youngest children. He is encouraging other parents to freeze their children's credit reports because it will prevent thieves from using their Social Security numbers and ruining their credit before anyone realizes it.

Darryl Thompson, a Durham lawyer who specializes in repairing credit damaged by identity theft, said that the new law will help but that people should realize that identity theft is a constant threat.

Preventing careless use of Social Security numbers -- universities using them as student identification numbers, for example -- is a particular challenge.

"We need to be make sure identities of citizens are taken care of," Thompson said.