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Credit News: LifeLock-Experian lawsuit - Important to Watch This One!!!

The lawsuit between identity theft prevention firm LifeLock Inc. and a U.S. credit bureau is taking legal experts into new territory, potentially establishing credit reporting case law for years to come.

In my humble opinion, the real issue behind Experian's lawsuit is that LifeLock is cutting into Experians profits. Since the credit bureaus make money by selling consumer information, LifeLocks combined opt-out, credit notification and reporting service hits the credit bureaus where it hurts, in their pocketbook.

This is a significant lawsuit. There is little legal precedent regarding the Fair Credit Reporting Act and the courts ruling will have a direct impact on consumer rights. The outcome will likely impact credit repair and anyone helping consumers with credit, including those in the mortgage industry. If the courts will rule in favor of civil liability for sending communications on behalf of and in the consumer's name, but not actually sent by the consumer, it will be a blow to consumer rights.

Clearly another instance where the credit bureaus do not have the consumers best interest in mind!

Read the rest of the news article here:

http://www.bizjournals.com/phoenix/stories/2008/03/03/story10.html?b=1204520400%5E1598367

Posted by Kate Bourland Empowering America to Live Debt Free on 03/06/2008 11:55 AM

Comments (11)

credit bureaus, credit repair, experian, lifelock, credit news

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11 Comments on Credit News: LifeLock-Experian lawsuit - Important to Watch This One!!!

MAR

2008

Kate, thanks for bringing that to my attention. I read the article and it will be interesting to see where it leads. Imagine that, the credit bureaus not having the consumers interest at heart; why doesn't that surprise me.

MAR

2008

Kate,

Lately, I have not had much time to read to many blogs, but when I read yours it always has something interesting. This will be interesting on how this lawsuit will play out. Its funny how these big corporations will sue others just to protect thier pocketbook. I have not heard anything bad about lifelock's services.

APR

2008

Wow..... Achachak turned this great post into an advertisment. Sigh.....

Kate,

Great post and I have been keeping up with this but I would be willing to bet that reporting agency will loose on this one. I sure hope they do.

Darrell, you make me smile. Doesn't it make you nuts when people don't understand how to use these networks.

I just lookd and Adachek is not an Active Rain member so I'll be deleting that post.

I too hope that the reporting agencies lose this one. They need to be reigned in. I'm not so sure that will happen as I've heard that LifeLock may not be as "pure" as originally reported.

I don't know, anything to reign in the power of the CRA's.

APR

2008

Kate ~ Very interesting. It's upsetting that the credit reporting agencies sell our information. And, try to get something incorrect removed from the credit report.

Yes Marzena, it is frustrating that the "consumer" credit bureaus have so many ways to make money off of our information. I wouldn't mind so much if they did their jobs adequately, but they don't. Thanks for commenting.

JUN

2008

Credit bureaus make it too difficult for the consumer to do anything except purchase credit score monitoring premiums. Do you know if there are lobbyist helping LifeLock or what the broker and banker associations take on this suit is.

Thanks for pointing it out. And thanks Samiullah for the site recommendation.

Richard

Hi Kate,

Great post. I will be watching for the results. I am not sure but I think you attracted another opportunistic advertisement from Samiuillah above Richard Smith.

Kate - thanks for posting. It will be an interesting case to watch. You can do much the same thing that Life-Lock does by freezing your credit. It cost a few dollars to do with each credit service, in Georgia it is $3, as much as $10 or $15 in some states. But, it is less than $10 a month. If you are applying for credit, or for insurance, or a job, you might have to temporarily unfreeze your credit to allow a credit check but can quickly refreeze. This will also cut down on the credit offerings you get in the mail since no company can do a credit check on you.

Richard I don't know of any lobbyists and I haven't checked in on what is happening with the lawsuit recently. I do some research and let you know

Pappy, I think that you're right, I deleted the post.

Mike, interesting. If you don't want to freeze your credit you can, and should "opt out" of any credit offerings. Opting out keeps anyone from checking your credit profile and you stop getting mailings. Here is the link. Out out of pre-screend credit card offers

I wonder, does freezing your credit keep your current creditors from being able to check your credit. One of the challenges that many people who are in a pre-foreclosure situation face is credit card companies doing an annual review and cutting credit card limits simply because the mortgage payment is late. This is happening on credit cards that have been in existance for 10 years or more with no lates and no high ballances. A drop in the FICO score means a lowered limit. This practice is putting even more pressure on these clients.

JAN

Kate,

Thanks for the information. It will be good to follow the developments of this case.

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