Tuesday, May 26, 2009

Lifelock loses suit by Experian on automatic renewal of fraud alerts

U.S. District Judge Andrew Guilford of the Central District of California ruled recently that Lifelock cannot automatically renew its fraud alerts for consumers without specific requests, after a ruling on a lawsuit filed by Experian, which maintains that it incurs involuntary expenses when the alerts are renewed.

Experian had argued that this was an “unfair business practice”. It indicated that the Fair Credit Reporting Act requires consumers to apply for the alerts themselves.

The “Redtape” story on MSNBC is by Bob Sullivan, link here.

When fraud alerts are in place, lenders call consumers or go through extra due diligence to verify identity. It’s been the contention of this blog that a due diligence system could be set up to be used in all cases.

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