Over the past few weeks, so many tragic headlines have gripped all of us. This includes the rising death toll and long-term devastation in Puerto Rico. Then, we continue to reel from the horrifying mass-shooting in Las Vegas. All the while, the stock market continues to rise to new highs and the GOP wants to pass a law to strip consumers’ rights to sue. That said, all of us need to stay informed about the many maneuvers that undermine consumer rights. I hope that some of you were listening closely to the words of the former Equifax CEO, Richard Smith. With his feigned concern for consumers, he continues to mislead and confuse. There are so many ways he has done so before the House Financial Services Committee. But I want to focus on one point, where he continues to show that lawmakers and the public should not trust anything he says.
Smith keeps insisting that a “lock” is preferable for customers because, he claims, a lock is very “user-friendly” and less cumbersome. But note: Locks are not the same as freezes. While activating and deactivating a security freeze takes more time. But note that state law governs security freezes, which translates to that consumers are not financially liability when executing a freeze on their credit files. So, if a consumer experiences fraud after activating a security freeze, then the consumer is in the clear. However, if you opt for a credit lock, which Smith promotes repeatedly in his testimony, it is unclear who is liable if/when fraud occurs.
A credit lock seems like an attractive choice, as you can do this by using an app with no PIN. And, it is typically instantaneous. But interestingly, only two credit monitoring bureaus—TransUnion and Experian—offers instant credit locks. Ironically, Equifax says its lock product included in TrustedID Premier requires 24 to 48 hours to process a customer’s request: the same as for a freeze. Also realize that you can’t lock and freeze at the same time. You need to choose one over the other.
Contrary to ex-CEO Smith’s testimony, don’t find comfort in the deceptively simple route of “locking” your credit. Why? Because we represent a number of clients who
have experienced identity theft on a jaw dropping level, after already having locked their files.
DISCLAIMER: By reading this blog post, there is no attorney-client relationship formed. Anything in this article should not be construed as an attorney’s advice. Please seek the advice and counsel of an attorney directly, if you are a victim of identity theft. We welcome your inquiries and will discuss your possible case with you at no cost. Email us at Equifax@Stritmatter.com and visit our Equifax page.