COLUMBIA, S.C. --- South Carolina residents could put a free block on their credit reports to help protect themselves from identity theft under a proposal on the verge of clearing the Legislature.

The legislation allows residents, at no cost, to freeze their credit -- blocking any new loan or credit card from being approved -- and temporarily unfreeze it when they want to open new accounts.

"If you can cut off a new account before it's opened, that ends the headache for you," said Gail Hillebrand, an attorney for the Consumers Union. "Prevention is the best security."

Indiana is the only other state that requires the blocking service to be free. Across the nation, fees range from $3 to $10 each time credit is frozen or temporarily freed, for each of the three main reporting agencies, she said.

The bill also requires companies and state agencies to notify customers when there has been a security breach that exposes their personal information and restricts the use of Social Security numbers.

South Carolina is among only 11 states nationwide without an identity theft protection law. California passed the first in 2003, Ms. Hillebrand said.

But the bill, which is back in the House this week after the Senate made changes, would make South Carolina a leader in helping consumers protect themselves, Ms. Hillebrand said.

Rep. Kris Crawford, who fought to make the service free, said he hopes it encourages residents to opt for the freeze to protect their sensitive financial information. The Florence Republican also argued to insert a provision requiring consumer reporting agencies to remove incorrect information from credit reports within 30 days or face penalties.

"This has a real impact on everyday folks' lives," he said.

Nationwide, 15 people per minute become victims of identity theft, Ms. Hillebrand said. In 2005, more than 2,400 South Carolinians reported their identities were stolen, according to AARP South Carolina.

The bill will head to Gov. Mark Sanford's desk if the House, which approved it last month, agrees with the Senate's changes. If approved, the bill would become effective Dec. 31.