Posted on 02/20/2008 4:16:24 PM PST by APRPEH
Credit bureau Experian is suing the identity theft prevention firm LifeLock, accusing it of deception and fraud in its familiar advertising campaign, which includes a spot in which CEO Todd Davis reveals his Social Security number and then brags about the effectiveness of the company’s protections.
In the lawsuit, filed in U.S. District Court on Feb. 13, Experian contends that LifeLock's advertising is misleading and that the firm is breaking federal law in the way it goes about protecting consumers.
Lifelock CEO Davis, in an interview with msnbc.com on Wednesday, called the lawsuit baseless and said that Experian is simply upset that his firm is challenging its business model.
"This lawsuit is not about helping consumers," he said. "They just want to make more money selling their data."
LifeLock’s ubiquitous marketing campaign has been stepped up in recent months, Davis said, thanks to a new infusion of investments in the company. In January, the firm announced it had raised $25.5 million in funding orchestrated by Goldman Sachs Group. The advertising has apparently paid off: Lifelock has 700,000 customers, each paying about $10 per month for the service.
Experian contends that LifeLock's chief ID theft prevention tool -- the placing of continuous fraud alerts on consumers' credit files – is illegal because, under the Fair Credit Reporting Act, fraud alerts can only be requested by the individual consumer or an individual acting on behalf of the consumer.
(Excerpt) Read more at redtape.msnbc.com ...
Yep, the Credit Bureaus should allow you to put a permanent fraud alert on your credit if you want one, but they don't so they can soak you for more money.
It's all about the money. They don't care about your credit at all.
I heard somewhere that Todd Davis of Lifelock has a shady past as scam artist.
its not Todd Davis but Robert Maynard, his former founding partner
Why ...
again, I ask
Why
can't (won't) the phone company provide a simple 4 digit lock for we whom have teenagers ????
This should get interesting. Are they gonna sue Obama too? After all his Hope speeches are another consumer fraud.
Well, duh, when you sign up with somebody like Lifelock aren't you in turn asking them to act on your behalf to request the fraud alert?
I suspect Experian is up to something here... not sure what it is...
Something smells odd here.
No, the REAL point is our social security numbers are being used for IDENTIFICATION and how many other things for which they are not intended. Thanks FDR, I may have to make a trip to New Hyde Park to empty my bladder.
It’s a shame our government has let it go so far that Americans have to buy Identity Insurance because Illegal Aliens are stealing our identity.
Everyone from the phone company to my insurance company insists on having my SS #, despite the fact that its is not to be used in this way. Where the heck is John Edwards when we really need him ?
I am surprised that neither Equifax nor Trans Union has weighed in on this.
Cheers!
Bull-shi’ite. I’m a subscriber and I can guess what’s really going on here.
Lifelock makes the credit reporting agencies (Experian, Equifax, TransUnion) run full credit reports and fraud alerts (re #13) for it’s customers every three months and send notification letters.
Lifelock’s business model is taking a bite out of Experian’s and Experian is going judge-shopping to stop it.
Cheers!
Whoops! That’s right. That must be why I feel so ronery when I open the mailbox these days...
If it wasn’t for the regular entreaties from the RNC and the various conservative magazines, I’d slit my wrists.
Yes, it makes opening a new line of credit more troublesome, but that is a good thing. Those "instant credit, save 10%" gimmicks at department stores--I can't qualify for those now. Good thing. I didn't need credit cards for Men's Wearhouse, Art Van, Victoria's Secret, or any other store, as it turns out. Now, I go shopping when I have money.
Clark also says that, though Lifelock does something you could do for yourself for free, they DO actually provide the service they promise.
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