Important information on credit reports

Here is some very interesting information I have come across. It seems that there is a legal war occuring between Experian and Lifelock. Experian as many of you know is a credit reporting agency that reports to creditors the credit history and score of people so that it can be used in making credit granting decisions. Lifelock is a fairly new company that offers a service for $10 per month that will place security fraud alerts on your credit reports that will make it much harder for someone to open credit it your name. The fraud alerts show up when a company runs the credit report to offer credit. These alerts require that the credit reporting angency verify additonal identity information before granting credit. Experian is fuming at this service because they offer a similar service for monitoring credit for fraud but they charge a far higher fee for their services. This new service not only cuts in to the sales of their similar products but it also causes them additional costs on the credit report end in maintaining these fraud alerts. They must pay customer service reps to complete the additional identity verification methods.Experian claims that these fraud alerts are free to consumers and that they need not pay Lifelock to get these alerts added to their report. They also assert that these fraud alerts are only meant to be used by people who have good reason to believe that they have already been a victim or in danger of becoming a victim because of stolen information. In other words, it isn’t meant to be used to prevent the possibility of becoming a victim. In actuality Lifelock doesn’t actually prevent fraud since the credit grantors can grant the credit on their own terms and the fraud alerts do not prevent them from granting credit. Why would people want to pay Lifelock to do something that is free anyway? The reason is that these fraud alerts expire every 90 days and so Lifelock automatically goes in and files a new alert at the 90 days so that the alerts are on the reports for as long as the person is a customer of life lock. This means that customers do not have to monitor and maintain this information themselves. Lifelock’s services also optout customers from junk mail and this means even more costs to the credit reporting companies because they are limited as to who they can sell your credit information to. In the end Lifelock is costing Experian money and they are MAD!!!!

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