Lifelock Sued By Experian - Lifelock's Promotional Efforts and Response
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------------------ Experian has sued Lifelock, a company that done a LOT in the promotion of their Identity Theft protection products. Experian's basis for this lawsuit is that LifeLock's advertising is misleading and that Lifelock is breaking federal law in the way it uses fraud alerts to protect the information of consumers. Experian has said that because LifeLock's chief ID theft prevention tool -- the placing of fraud alerts on individuals' credit files - is being done by a company, rather than through the individual consumer or through someone acting on behalf of the consumer, that Lifelock is in violation of the Fair Credit Reporting Act. The Fair Credit Reporting Act uses some ubiqutios language in stating whether or not fraud alerts can be placed by a company. Experian's lawsuit says: What's funny about this lawsuit is that Experian and the other credit bureaus have been required by the federal government to allow these fraud alerts to be placed... before the laws were passed, consumers in most states didn't really have much recourse against the credit bureaus without hiring an attorney. Fraud alerts last for 90 days. These alerts tell any company which requests a consumer's credit that they need to be aware that imposters could be using this person's credit. Fraud alerts are only supposed to be placed in the case that there is "suspicion of imminent fraud." Says Experian. But with over 150 million records reported as compromised in the past 2 years alone (and who knows how many went unreported), isn't there now always a reason for all of us to be concerned that there could be a situation for "imminent fraud?" All it takes is one weirdo or other unwholesome character at any of the companies where I have insurance, any of the institutions where I do banking, any location where I use a credit card to buy something, at the DMV, at the post office, etc., and I can become an Identity Theft victim. I would say that makes the likelihood pretty high (perhaps even imminent?) that I could become a victim. Experian says that placement of fraud alerts or really any promotion by LifeLock on behalf of any consumer who requests one also runs counter to federal law. The service offered by LifeLock does include automated requests for new fraud alerts every 90 days. Lifelock actually renews these every 70 days, as Robert Prusinski told us in Lifelock's Promotional Interview with Identity Theft Secrets. Renewing this every 70 days effectively creates a fraud alert which goes on indefinitely. Experian calls these "illegal fraud alerts." Lifelock's public response has been to step up their online, TV, and Radio promotional efforts, saying that they have tried to build a business relationship with Experian, but that Experian is building business based on some different code than Lifelock. Here's Lifelock's email of assurance (Retrieved for us by one of the Identity Theft Secrets Super Sleuths) to its promotional partners: The suit alleges, among other things, that LifeLock has committed fraud by failing to disclose that consumers can place fraud alerts themselves for free and that credit laws do not provide for a third party to place fraud alerts on behalf of a consumer. Of course, as you already know, LifeLock has always made clear you can perform our fraud alert services yourself, just as you can do your own taxes and wash your own car. We also believe the Fair Credit Reporting Act permits the service LifeLock provides. We would welcome the opportunity to work out a business solution with Experian, but Experian has not demonstrated any inclination to reach an agreement with LifeLock. We will vigorously defend ourselves and, in so doing, defend consumer's rights to protect themselves from identity theft. We are confident we will be vindicated in court. LifeLock has always supported the intent and spirit of the Fair Credit Reporting Act, and will continue to protect consumers by offering our industry leading proactive identity theft protection. We also appreciate the groundswell of support from consumers and our partners nationwide. As our growth demonstrates, people see the value of what we do. If you have any questions or concerns, please contact us, but be sure that what LifeLock has done, and will do, is continue to offer consumers the best and most comprehensive proactive identity theft protection available. Sincerely, Is Lifelock being deceptive? Is Experian being hard-nosed? What are your thoughts?
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