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Credit Industry Opposes Anti-ID Theft Method
athloi alerts us to an opinion piece running in USA Today on the backlash against an effective tool to fight identity theft. The big three credit bureaus don't like the numerous state laws that have been passed requiring them to give consumers a simple way to freeze their credit. Watch for a push at the federal level to get a watered-down statute that pre-empts state laws. "Lawmakers across the country — pushed by consumer advocacy groups — ... have passed laws that allow consumers to freeze their credit, a surefire way to prevent thieves from opening new accounts or obtaining a mortgage in a consumer's name. Under a freeze, a consumer cuts off all access to his credit report and score, even his own. All lenders require that information, so no one can borrow money in the consumer's name until he or she lifts the freeze. It's simple, and it works. So, of course, it's under threat from the Consumer Data Industry Association, which represents the Big Three credit bureaus. They make millions gathering and selling consumer data. Freezes cut into that business."
I still don't understand why this is even necessary.
How about this: Any lender that opens a line of credit must PROVE that the person they say they opened it for actually opened it.
That doesn't mean you can just say, "Well, I have this social security number, date of birth, and a name - that's enough right?"
I'm talking "You want credit? Let me get you to fill out this application and have it notarized. Otherwise, no credit for you."
Anyone lender who can't PROVE they have the persons permission CAN NOT LEGALLY post any negative credit information anywhere and can not try to collect on any debts supposedly owed.
Does anyone really think it is ok to just allow lenders to defame the name and credit history of anyone unlucky enough to have their SSN stolen?
The blame for stolen identities falls SQUARELY in the hands of those who allow those stolen identities to be used.
Perhaps I am misunderstanding the situation, but I have a question. Presumably, the idea behind the credit freeze is to stop those who have stolen your identity from doing naughty things with it. However, if the would-be thief has the wherewithal to abscond with thousands of dollars under your name, would this same thief not also have the ability to remove the freeze?
Thief: I would like to borrow $100,000 from Knave's account please.
Clueless Customer Rep: Sorry sir, Knave has put a freeze on the account.
Thief: I see...
(4 minutes later, with a different clueless customer rep)
Thief: Knave here, I would like to remove the freeze on my account, I'm buying myself a sweet car.
Clueless Customer Rep: Very good sir, freeze ovah.
Thief: Thanks!
What am I missing?
True case in point: My sister worked for a bank that did mortgage and consumer lending. When they pulled an applicant's credit record, that record includes everyone else who has also accessed that credit record. Although it should be illegal, they would use any reason possible to turn down someone who had recent hits on their credit reports because they didn't want to deal with customers who might be "shopping around for the best credit deal." In this circumstance, totally irrelevant credit data -- i.e. who else had accessed your credit record recently -- was used against you.
These bastards have to go down!
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
This got an insightful mod? Give me a fucking break. Yes, I've been on /. for four years, have over 2,000 posts and good karma but I'm trying to provide a link so I can scam people's personal information! That must be it!
You don't trust the site I linked? Go look at this one from the FTC then. It gives you a number (888-5-OPTOUT) to call if you'd rather do that then fill out the online form. It also links to a website, which is (surprise, surprise) the same one that I provided.
Unless you think the FTC is providing you with a link to a phishing site I really don't see what the problem is.
I want peace on earth and goodwill toward man.
We are the United States Government! We don't do that sort of thing.