Did you know that major credit bureaus, Equifax, Experian, Transunion and Innovis are legally allowed to sell and share your private data including your name, address, phone numbers and other personal details to any of their members who request and pay for the information? The credit bureaus collect personal information about you from banks, credit unions, credit card issuers, auto and mortgage lenders, debt collectors and others.
Lenders, credit card companies and other businesses buy the information and use it to determine your credit worthiness, known as prescreening. This is legal because of the Fair Credit Reporting Act (FCRA) The FCRA is a part of a group of acts contained in the Federal Consumer Credit Protection Act3 such as the Truth in Lending Act and the Fair Debt Collection Practices Act. It was implemented on April 25, 1971. https://files.consumerfinance.gov/f/documents/102012_cfpb_fair-credit-reporting-act-fcra_procedures.pdf
Once your information has been shared you will become the target of unsolicited calls, emails and mailings from credit card companies, lenders and other marketers.
You have the right to “opt-out” go to the Opt Out List at www.optoutprescreen.com and sign up. This will prevent the credit agencies from selling your credit information to others.
Add your phone number to the “Do Not Call List”. This prevents unwanted sales calls from any industry. Go to the Federal Trade Commission (FTC) www.donotcall.gov and sign up.
Freeze your credit, a credit freeze, also known as a security freeze, is one of the best ways to prevent fraud and identity theft. When your credit is frozen it limits access to your credit reports unless you lift the freeze, or “thaw” your credit. Limiting access to your credit report makes it significantly harder for creditors and lenders to access your files, this prevents criminals from opening accounts in your name.
Placing a security freeze on your credit reports will not prevent companies from sending you pre-screened credit card or insurance offers, but it will protect your credit file and prevent access unless you authorize it.
In 2018 the Economic Growth Regulatory Relief and Consumer Protection Act was passed which requires all credit freezes to be free of charge. A credit freeze will not impact your credit score.
Freeze your credit at the major bureaus Equifax, Experian, Transunion and Innovis. This can be done online, by phone or through the mail.
You will need to provide your full name, address, Social Security number, birth date and other personal information. You’ll be asked a few questions to verify your identity and then be asked to create a PIN.
Keep your PIN and other information they provide in a secure location, you will need this to access your account and manage the freeze.
You can temporarily or permanently unfreeze your credit online, by phone or by mail.
Children are also vulnerable to identity theft see my article How To Freeze Your Childs Credit
Check your credit reports regularly. You can use sites like Credit Karma and Credit Sesame to view your credit scores.
You are entitled to a free copy of your credit reports at the three major credit bureaus, Equifax, Experian and Transunion. Go to AnnualCreditReport.com to request your reports.
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