TRW to Offer Free Credit Reports Next Week : * Consumerism: Competing bureaus decline to follow suit. The Orange-based unit monitors 170 million Americans.
TRW Inc. will begin next week its long-awaited program to provide consumers with a free copy of their credit report, upon request.
“We’re encouraging consumers to take advantage of it when it will benefit them the most--prior to a major purchase,” TRW spokeswoman Susan Murdy said. “It will help consumers understand our role in the credit-granting process.”
TRW announced in October that it will become the first of the nation’s three major credit bureaus to offer free reports. The offer came as the company was combatting unrelenting criticism from consumer groups about widespread errors, alleged privacy breaches and mismanagement of the records it maintains on the spending habits of 170 million Americans.
At the time, it appeared likely that Congress would pass a law to require all credit bureaus to offer the free reports. However, the legislation did not pass, and neither of TRW’s two major competitors--Equifax Inc. in Atlanta or Trans Union Corp. of Chicago--say they will follow suit.
Still, TRW’s free-report offer is the latest sign of how credit bureaus are suddenly competing to appear the most friendly to consumers, after years of focusing their consumer credit information efforts primarily on their customers: car dealers, department stores and other lenders.
TRW’s Information Services division, based in Orange, is part of a Cleveland-based conglomerate that includes automotive parts and space divisions. The company has hinted that it might be interested in selling the credit bureau.
TRW had always charged the public $15 for credit reports, except in states such as California, which require reduced rates. TRW cut the fee to $7.50 earlier this year as part of a settlement to lawsuits brought by attorneys general in more than a dozen states, seeking to reform the company’s practices.
The company said it has no idea how many people will accept its free-report offer. Last year it said it had 2 million requests for reports, most of them from consumers who were denied credit and wanted to find out why.
The free report will be available nationally only in writing and only at this address: TRW Consumer Assistance, P.O. Box 2350, Chatsworth, Calif. 91313-2350. The request should be made on plain paper or stationery--a bid by TRW to weed out requests from the credit repair clinics that the credit bureaus despise.
A consumer who wants the report needs to furnish TRW with full name, current and previous addresses, Social Security number, year of birth and spouse’s first name. The company also requires that a consumer supply a photocopy of their driver’s license, a utility bill or another official document to link their name with their address; none of the major bureaus have previously asked such copies.
Consumer representatives said that while the extra step of providing identifying documents will add an extra chore to obtaining a report, they agree that it could help protect privacy.
“I think it’s a legitimate concern,” said Elgie Holstein, executive of the Bank Card Holders of America, a nonprofit consumer group based in Herndon, Va. “I’m not sure whether in practice this will work very well.”
Holstein said that TRW officials contacted him about the plans to add the requirement and that “I anticipated eyebrows would be raised about it.”
Susan Hendrickson, a state deputy attorney general who handled California’s part of the attorneys general lawsuit against TRW, said she questions whether the extra step might trouble some consumers but sees the value of protecting privacy, as well.
Getting a Free Credit Report
Responding to complaints of errors, mismanagement and privacy breaches, TRW agreed to offer free credit reports.
The Details
* Effective date: April 30.
* Who can apply: Only consumers requesting their own reports can receive a free copy. Requests from third parties will not be accepted.
* When to apply: For major purchases, such as a house or a car, request a report six to eight weeks in advance.
* Frequency of applications: One free report per year; additional reports within the same year are $7.50, plus sales tax.
* Method of application: All requests must be made in writing; no telephone requests or faxes will be accepted.
* Turnaround time: About two to three weeks to receive your report.
The Procedure
* Make request in writing on plain paper or personal stationery.
* Requests should include all of the following information or they will go unprocessed and be returned:
* Full name (including middle initial and generation, if applicable--Jr., Sr., II, III).
* Current address, including ZIP code.
* Previous address if you have moved in last five years.
* Social Security number.
* Year of birth.
* Spouse’s first name, if married.
* Photocopy of a billing statement, utility bill or driver’s license that links the name of the consumer with the address to where the report should be mailed.
* Mail request for free report to:
TRW Consumer Assistance
P.O. Box 2350
Chatsworth, Calif. 91313-2350
Source: TRW Information Services
