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Sandra Block writes about identity theft in USA Today:
"Car-theft victims know they have a problem as soon as they discover an oil spot where their Mustang used to be. But many victims of identity theft don't know they've been targeted until long after criminals have taken their credit cards for a joy ride.
In an effort to empower victims of this fast-growing crime, lawmakers and regulators are pushing data brokers and other businesses to notify consumers who may be vulnerable to identity theft.
Last week, banking regulators approved a rule requiring financial institutions to alert customers about security breaches if the companies believe the information will be misused. The rule, in the works for several years, followed several widely publicized security violations.
In February, ChoicePoint, a giant data broker, revealed that a crime ring had obtained sensitive digital information, such as Social Security numbers and credit reports, for at least 145,000 people.
If you receive a notice that your personal information may have been stolen, you should act quickly to safeguard your identity."
More from USATODAY.com
Your success in requesting your credit reports online will depend on several factors. One of those factors is dumb luck. If the security questions happen to be something you know the answer to, you might be in luck. If not, you may run into problems and have to pick up the phone to get your free credit reports. A Reporter for Pantagraph.com writes about his experience requesting his credit reports: Be forewarned: Arm yourself with information before accessing www.annualcreditreport.com. That means putting together a list of account numbers for every loan you have as well as credit/debit card numbers.
The whole process proved a mixed bag for this reporter. I randomly started with Experian, one of three major credit bureaus from which you can get one free annual credit report.Another article from today's Pantagraph by the same reporter.
"While consumers are very aware of credit reports and scores, many don't understand factors that negatively impact their financial report cards, according to a report issued by Congress Wednesday.
Most consumers don't know their scores can be used for insurance or employment decisions, the report also says, and a scant 6 percent of consumers know the Federal Trade Commission is the agency to turn to if they have a run-in with the credit reporting agencies.
The report also found that Hispanics understand their credit rights far less than whites or blacks.
The report, "Credit Reporting Literacy: Consumers Understood the Basics but Could Benefit from Targeted Educational Efforts," was issued late Wednesday by the General Accounting Office. It was mandated by the 2003 FACT Act, best known to consumers as the law which gave them a free copy of their credit report every year. Consumers were surveyed last year, before free credit reports took effect.
"At some level we were pleasantly surpassed that people had a general notion about credit reports," said Richard Hillman, one of the study's authors. "But their awareness levels quickly dropped off," when asked more specific questions about their credit reports, he said, such as how long negative information remains on a credit report, or how the dispute process works. Only half knew that using all their available credit -- being close to the credit limit on several credit cards -- lowered their credit score. And nearly three-quarters didn't know that credit reporting agencies must investigate disputed items for free."
Read more from MSNBC
An interesting article on CNN.com today exposes 8 popular credit score-related myths.
The following myths are exposed:
Myth: You only have one credit score.
Myth: Checking your own credit will lower your score.
Myth: Your age, income and sex are factored into your score.
Myth: A higher salary will boost your score.
Myth: To remove unfavorable info just dispute it.
Myth: Shopping around for a loan hurts your score.
Myth: Credit card offers are hurting your score.
Myth: When you get married your credit scores are merged.
Read the article
"Harry Edwards, 63, of Grand Blanc Township didn't even recognize his credit report - with five names, seven addresses, two Social Security numbers and a $1,040 bill for two surfboards.
'I've never seen so many things wrong in such a short period of time,' Edwards said.
In the rush to receive free credit reports, available for the first time this month, many area residents are finding disturbing problems.
Clyde Howd, 55, of Thetford Township found an old $51,000 loan listed as an open account and his son's mortgage on his credit report.
Others reported mysterious loans, unheard-of credit cards and parents who repeatedly found their children's addresses listed as alternate addresses on their credit reports.
'You have to watch your credit report,' said Howd, who believes he was turned down for a loan last year because of errors on his report.
Credit reports contain detailed financial information, and what they say can determine far more than if an applicant can get a credit card or get a new car. Credit reports also are used to determine the cost of car insurance as well as by some potential employers.
John Ford, chief privacy officer for Equifax, one of the three national credit reporting agencies, said mistakes can happen, but they are not commonplace. The last major industry study estimated errors on 0.2 percent to 3 percent of reports, he said."
Full Article on MLive
They finally figured out that their anti-linking policy was not very web-friendly, so now you can click directly on links to AnnualCreditReport.com, regardless of the site they appear on (yeah, even this one). I was wondering if they were going to come around on that. Better late than never, I guess.
"Most consumers know they can get a free annual copy of their credit report – and they should. Many don’t know that they’re also entitled to free access to other personal records that companies keep on them.
A little known federal regulation gives all consumers some important rights to personal information. Companies keep all kinds of databases about customers and credit card holders.
"Consumers have the right to see information that's collected by companies when they sell it to companies to make decisions about them,” said Peggy Twohig, a spokeswoman for the Federal Trade Commission.
This data falls into a category sometimes called "specialty reports" or "other consumer reports." It's something like credit bureau data but it tracks other information, such as medical records, bankruptcy filings, driving records, criminal or civil case records, insurance information and banking information.
Twohig says data like that is used to make all kinds of business decisions about you.
"Insurance companies want to know, for example, if you have filed claims in the past. And that insurance company might use that to make a decision on whether to grant you insurance and what price to charge you for the insurance,” she said.
The problem is, information gathered on you can often be incorrect. Last year, the consumer group U.S. PIRG found errors in four out of five credit reports.
Others find errors also. Sherrie McGregor found $91,000 worth of errors on her credit report. Tabitha Jackson’s credit report contained phantom accounts and non-existent collection agency actions. That’s why incorrect “Specialty Consumer Report” information needs to be checked."
Read more from KYTV Springfield, MO
Yipes! The Washington Post Reports on more big-time fraud--this time it's LexisNexis that let fraudsters steal personal data on 32,000 customers. Here's an excerpt from the article: "Identity thieves have compromised another company that collects and sells personal information on millions of U.S. consumers, the latest in a series of breaches that is throwing a spotlight on the practices and safeguards of a booming data-collection industry. LexisNexis, a worldwide leader in global legal and business data, announced that data on 32,000 consumers was fraudulently gathered in a series of incidents. The data includes names, addresses, Social Security and drivers' license numbers. The breaches occurred at the company's recently acquired Seisint subsidiary, a Florida firm that sells data amassed from extensive public-records searches to law-enforcement agencies, businesses, private investigators and others." Read the article on washingtonpost.com
Note: This is kind of old news now, but I don't think I've posted anything about it before and it's kind of interesting. "Consumers who have been turned down for credit or who've paid a higher interest rate because a scant credit history gave them a low credit score have another shot now at more favorable terms. Fair Isaac Co., creator and owner of the FICO score that is widely used in the mortgage, auto loan and credit card industry, has created a new score designed to predict credit risk for individuals with little or no credit history. The new FICO expansion score draws on information in an array of small credit reporting agencies outside the realm of the three major credit bureaus, says Craig Dillon, vice president of scoring solutions at Fair Isaac. The new score draws on data from industries such as pay day loan companies, rent-to-own stores and banking organizations that share information about people who abuse overdraft protection on checking accounts. The company's market research, which is confirmed by others in the credit industry, indicates that while about 160 million consumers have enough information on file to generate a valid FICO score, as many as another 50 million do not. The consumers who might get a break with the new score include recent immigrants to the United States (whose good payment histories from their home countries don't transfer to the U.S. credit reporting system), college students, new divorcees and widows, those with low incomes, and people whose cultures don't trust financial institutions or large national organizations, Dillon says." Full Article From BankRate.com
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