Monday, October 06, 2008
Could monitoring of individual credit extend to new areas? Also, some credit cards being closed
On this blog, I’ve repeatedly called for establishment of a “preferred contact point” system for lenders, with use of the USPS NCOA (National Change of Address) system. I’ve said that increasing notification and due diligence requirements on lenders could reduce identity theft and fraud, and I suppose the idea could gain traction given the current fiscal mess.
The main objection is, you guessed it, it give the government potentially a greater capability to track the activities and movements of individuals. Yes, this is not China and I am not as concerned about that, although maybe I should be.
There will be more regulation of a lot of other activities, particularly in the financial world, but that could lead to a climate where individuals are looked at more closely. That does worry me. Imagine a world where your credit report or FICO score was checked before you have an Internet domain (because ICANN is dealing with some fraud problems there now – as on my Internet safety blog) or get a domain, or even a social networking site or blog publishing account. Because of some arcane, if still theoretical problems, I can imagine how this could happen some day.
Consumer credit card accounts getting canceled:
By the way, WJLA in Washington is reporting that some banks (especially Bank of America) is starting to close some customer credit card accounts, mainly (1) delinquent or over limit, and some customers are having their limits reduced and (2) cards not used at all for one year or more.