Friday, February 25, 2005

Identity Theft

As we all know, identity theft is a growing problem in the US. I have read too many stories about people who have their identities stolen and then spend countless hours attempting to repair their credit, restore their good name, etc. Sometimes even quitting their jobs they spend so much time doing this.

CNN has an article about a company who exposed 145,000 people to identity theft. The article points out some of the issues regarding identity theft that I have been wondering about for a while now.

The whole problem behind identity theft seems to revolve around the fact that the three main credit bureaus don't have their act together. I have read in numerous reports that they have made it way too easy to open a line of credit. It can often be done with inaccurate or incomplete information on the application. It is a problem that they have created and I think it is even crazier that they have the gall to sell "credit monitoring services". The federal government hasn't gone nearly far enough regulating these "services". According to the Fair and Accurate Credit Transactions Act consumers can put a 90 day fraud alert on their credit reports. This "alert forces banks, car dealers and other lenders to apply additional scrutiny whenever anyone tries to apply for credit in that person's name". Why can't these additional measures be done all the time. I would rather have it take longer to apply for a line of credit than have myself exposed to identity theft.

I am not a big fan of class action lawsuits, but I hope this company is buried permanently!


At 12:06 PM, Blogger Ricardo Grande said...

Don't bury them - shoot them out of a cannon! Everyone's doing it!


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