Avoiding Identity Theft With Fraud Alerts; It Does Not Have to Cost You Anything
December 19, 2007
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There is no doubt that Identity Theft is scary. Just imagine, a criminal can steal your identity, open new loan and credit accounts in your name, clean out your savings, ruin your credit history, and leave you seriously in debt, owing banks and credit card companies tens of thousands of dollars. This sounds like a nightmare, except that it is real, and it has happened to many. It is estimated that there are anywhere between 7 Million and 15 Million Identity Theft victims annually.
Wouldn't it make sense if banks and credit card companies were required to contact you at a secure telephone number prior to issuing any new loans or credit cards in your name? Absolutely!!! That way, you can be assured that no loans are approved in your name without your own approval. There are some companies out there that are offering Identity Theft protection tools that essentially revolve around such idea, and are charging around $100 per year for such service. Guess what, this idea is nothing new, and it is known as Fraud Alerts. It has been mandated as your right under the Fair and Accurate Credit Transactions Act of 2003, and best of all, Fraud Alerts is free!
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Under Section 112 of FACTA, it is stated that in the case of Initial Fraud Alerts: "(ii) VERIFICATION.'If a consumer requesting the alert has specified a telephone number to be used for identity verification purposes, before authorizing any new credit plan or extension described in clause (i) in the name of such consumer, a user of such consumer report shall contact the consumer using that telephone number or take reasonable steps to verify the consumer?s identity and confirm that the application for a new credit plan is not the result of identity theft."
Hence, if you place a Fraud Alert on your credit report, and you specify a telephone number for verifying new loans or credit cards, it would be expected that creditors would contact you to such number prior to issuing such loans or credit cards. Fraud Alerts come in two forms, either Initial Fraud Alerts, or Extended Fraud Alerts. Extended Fraud Alerts are available to those who have actually become victims of Identity Theft. Meanwhile, Initial Fraud Alerts do not have such limitation. However, Initial Fraud Alerts expire after 90 days, and must be renewed in order to remain in place. In order to avoid paying as much as $100 per year for someone to place Fraud Alerts on your behalf, and renew them on your behalf, you can place them by yourself for free, and sign up for a Reminder service to renew your own Fraud Alerts. For example, members of www.CreditLock.com enjoy complimentary Fraud Alerts Reminders, complimentary Annual Credit Report Reminders, and complimentary kits to place Credit Lock / Credit Freeze, while membership costs a token $4.68 per year or less.
Many of the best Identity Theft protection tools come for free, such as Annual Credit Report, National Do Not Call List, Pre-Screen Optout, and Fraud Alerts. Many companies have started businesses charging consumers as much as $100 per year or more, for placing such free tools on your behalf. Wouldn't you rather save the money, retain your own personal information, and do it yourself for free, or for a nominal fee that may include some conveniences? Email Article |
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