Paying for protection?
Why get identity theft protection for free when you can pay for it?
That seems to be the attitude of a number of companies, including Lifelock Inc. Known for the TV ads in which its chief executive displays his Social Security number for all to see, Lifelock sells for $10 a month a package of credit fraud alert tools that people can easily set up for themselves at no cost with one of the major credit reporting bureaus, including Experian Information Systems.
Interestingly, Lifelock’s product made Experian so unhappy that it recently sued Lifelock, accusing it of “illegal placement of fraud alerts” in a case pending in federal court in California.
Experian doesn’t have a pristine history in this field, according to the Federal Trade Commission. In 2005 the agency charged Experian with deceptively marketing “free” offers on its freecreditreport.com website.
Experian, which did not admit to wrongdoing in the case, reached a settlement that included its paying nearly $1 million that the agency could use for consumer education.
None of that money made its way to Consumer Watch.
Nonetheless, here’s a list of free or low-cost consumer tools that can be used by individuals if you want to ignore the sales pitches by businesses that want to do the work for you.
Credit report
You have the right to three free credit reports a year -- one each from the major credit bureaus: Equifax, Experian and TransUnion.
The reports list payment histories of loans and outstanding debts or bills. If you’ve been late or negligent in paying a bill, it might show up. Taking care of those might boost your credit status.
It’s a good idea to get all three reports because there can be differences among them. Carefully check for mistakes -- sometimes bills that were paid long ago are still listed as unresolved. Also, you could find evidence of identity theft, such as charges for items you never bought.
Furthermore, it’s important to check the personal information sections for irregularities, such as addresses where you’ve never lived.
If you spot problems, each of the credit bureaus has appeals processes you can use to challenge items listed. And although these bureaus probably won’t win a lot of popularity contests, they do resolve some proper challenges in a matter of days.
By law, the credit bureaus had to set up a site where you can apply for all three of your free reports -- it’s www.annual creditreport.com.
A note of caution: While you are at the official site, the credit bureaus might try to offer you additional services that are not free. Feel free to ignore them.
Credit scores are not included in the free reports. If you want them -- and each of the credit bureaus figures them differently -- you’ll probably have to pay.
Fraud alert
If you’ve been a victim of identity theft or fear that you could be (due to credit cards being stolen or perhaps a notification that your personal financial information might have been pilfered), you can put an alert on all three of your credit bureau records.
Then, if someone tries to apply for a credit card or get a loan in your name, the card company or lender checking credit records is supposed to be alerted that there might be a problem.
To place a fraud alert, call toll-free numbers for the credit bureaus listed on their Web pages (and in the information box accompanying this article).
Credit freeze
This is a more effective but somewhat more bothersome way to help prevent identity theft. And it’s not free in all cases.
Also, it’s not available everywhere -- California was a pioneer in giving residents freezing rights.
A freeze puts a lock on your credit records, and they can be opened for inspection only with your permission.
This ensures that no one can apply for a credit card or loan without your knowledge.
But every time there is a legitimate reason for someone to check the reports -- such as your applying for a credit card or even a new job -- you have to temporarily lift the freeze.
To place freezes on your reports, you have to send request letters to each of the credit bureaus. A freeze costs $10 ($30 to do all three), but the fees are waived if you’ve been an identity theft victim.
Pre-approved offers
Credit card and insurance offers that come in the mail because you’ve been “pre-approved” or “pre-qualified” can be stopped or at least curbed.
Under the federal Fair Credit Reporting Act, you can get removed from so-called firm-offer lists that companies use to make these solicitations.
It’s not a cure-all. You’ll still get offers from companies that don’t use those lists.
Junk mail
This has no force of law, but the Direct Marketing Assn. will request its thousands of members to take you off their mailing lists if you request it.
There is a cost, but it’s only $1, payable by credit card or check. The association said it’s for verification purposes.
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Do it yourself
Companies will charge you for consumer protections and to have you removed from mailing lists, but you can do much of this yourself for free or at low cost.
Credit report
You have the right to three free credit reports a year, one from each of the major credit bureaus. You apply for all three at www.annualcreditreport.com or call (877) 322-8228.
Fraud alert
Applying for no-cost alerts, which are good for 90 days, can be done at Equifax (800) 525-6285, Experian (888) 397-3742 and TransUnion (800) 680-7289.
Credit freeze
Each credit bureau has slightly different information and fee requirements. The California Department of Consumer Affairs lists them on its site at www.oispp.ca.gov/consumer _privacy/consumer/ documents/pdf/cis10security freeze.pdf.
Pre-approved offers
To get off the firm-offer lists, go to www.optoutprescreen
.com or call (888) 567-8688. Be aware that if you call, a recorded voice will ask you for your Social Security number. You don’t have to give it, and if you stay silent the process will move on to other information requests.
Junk mail
To get off some catalog and coupon lists, visit www.dmaconsumers.org/cgi/offmailing.
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Source: Times research
