Monday, March 17, 2008

Experian Picks A Fight With Lifelock

Experian, one of the top three credit reporting bureaus sued Lifelock, a small company that sells identity theft protection services, alleging that it engages in fraud by skirting consumer protection laws.

An article from The Register quoted Experian as saying, "LifeLock's scheme costs Experian millions of dollars every year in processing large numbers of improper initial fraud alerts, mailing mandatory notices to consumers, and providing free credit reports to consumers who are not eligible for such reports".

In a sense, I think that Lifelock helps consumers feel more secure by placing fraud alerts in their credit reports, thereby creating a lifelock, so to speak. Indeed, one of the advanatges in purchasing a credit fraud alert service like Lifelock is that it is also designed to protect the consumer, at the expense of Credit Reporting Agencies profits.