LifeLock, Inc. is a service that claims to provide protection against identity theft to its subscribers. It has recently been sued by the Experian credit bureau based on the violation of what Experian claims to be basic trust and information issues. LifeLock, Inc. services aimed to protect the consumer and their credit report against fraudulent activity by adding a fraud alert to the credit report of their subscribers. Experience has alleged in their lawsuit against LifeLock, Inc. that LifeLock, Inc. is engaging in this deceptive and fraudulent behavior that harms consumers and Experian credit bureau.
In order to understand the basis of the lawsuit against LifeLock, Inc. the first need to understand the importance of a fraud alert on credit report. Lenders and creditors that use credit reports of consumers in order to approve them for business rely on fraud alert on the credit report to take various precautions in order to avoid identity theft and credit fraud. A fraud alert is something that every consumer has a right to put on his/her credit report for no charge at all. This is plight has been provided to every single consumer in the United States of America by the fair and accurate credit reporting act. Experience feels that by adding thousands of fraud alerts on the credit reports of its subscribers like flock is undermining the importance and the seriousness of what this process is supposed to accomplish.
When the Congress enacted the divisions to the fair credit reporting act, it did not intend for corporations to be able to act on the behalf of consumers. A fraud alert was intended to be added personally by the consumer who felt that he was at a threat for credit fraud or had evidence to suggest that he had been made victim of identity theft. A fraud alert on a credit report alerts a lender that is the consumer suspects that he may be in danger of identity kept and mandates the lender to take certain precautions such as contacting the customer before approving the credit and asking for additional documents to prove identity. The lenders and creditors are required by law to take actions when there is a fraud alert on a credit report. However, adding thousands of fraud alerts on credit reports of individuals who might have no reason to believe that they are going to be targeted for identity kept reduces the significance and importance of a fraud alert on a credit report significantly. Each time that a victim contacts the credit reporting agency to request a fraud alert that and that is shared with all the three national credit reporting agencies. Three separate confirmations are made each consumer. Three free reports from each company are also offered to the person who places a fraud alert on their credit report. Filing a fraud alert every 90 days by LifeLock, Inc. has resulted in flooding of the databases of the national credit bureaus with thousands of allegedly illegal fraud alerts.
Experian has also displayed concerns that while consumers may believe that the service offered by LifeLock, Inc. is a foolproof way of protecting the identity, LifeLock, Inc. services do not offer a foolproof protection plan. Allegedly this fact was proven when the president of LifeLock, Inc. was himself victimized after advertising his Social Security number and name on television as well as on their website. An identity chief uses Social Security number to get himself approved for a pay day loan which did not involve getting a credit report at all. Because no credit report was involved of fraud alert could not prevent the fraudulent transaction.
There are other certain points about nondisclosure of information by LifeLock, Inc. to its subscribers those expression customers to be unethical. Allegedly, LifeLock, Inc. services do not inform their subscribers that the free report that they offer them once a year is in fact the free annual report that any consumer can get on their own by logging on to www.annualcreditreport.com. Allegedly, they also could not make the point very clear to the subscribers that the fraud alerts that they are going to be putting on the credit report is a right that all individuals have in the United States of America. Any individual can put a fraud alert on their credit report without any cost to them as well. LifeLock, Inc. also claims that its services drastically reduce junk mail and preapproved credit offers. What they do not reveal to their subscribers is that they are simply posing as subscribers in using the feet of the service provided by the national credit reporting agencies which the consumer can use for free by calling 1-888-567-8688.
While taking this step removes you from preapproved offer lists compiled by Experian, Equifax and Transunion for a period of five years permanently you choose to do so, it will not however, the movie from the mailing lists compiled by others or prevent you from receiving marketing offers for the products and services.