Fraud Alerts

A fraud alert can make it more difficult for someone to get credit in your name because it tells creditors to follow certain procedures to protect you. It also may delay your ability to obtain credit. You may place a fraud alert in your file by calling just one of the three nationwide credit reporting companies. As soon as that company processes your fraud alert, it will notify the other two, which then also must place fraud alerts in your file.

• Equifax: 1-800-525-6285; www.equifax.com
• Experian: 1-888-397-3742; www.experian.com
• TransUnion: 1-800-680-7289; www.transunion.com

An initial fraud alert stays in your file for at least 90 days. An extended alert stays in your file for seven years. To place either of these alerts, a consumer reporting agency will require you to provide appropriate proof of your identity, which may include your Social Security number. If you ask for an extended alert, you will have to provide an identity theft report. An identity theft report includes a copy of a report you have filed with a federal, state or local law enforcement agency, as well as additional information a consumer reporting company may require you to submit. For more detailed information about the identity theft report, visit www.ftc.gov/idtheft.

A fraud alert is the one thing that the Bureaus share information on. Calling or writing one will get the alert placed. To remove an alert, you must write each bureau individually to ask for removal.

If you are a victim of Identity theft, you are entitled to a free copy of your credit report from each bureau for free, if you ask for a fraud alert in writing, request a copy of your report as well, then write to or call each bureau for the report.

In certain parts of the country, Equifax Reports are actually maintained by CSC Credit. CSC is a subsidiary of Equifax, and which bureau has your file is determined by Zip code.

There is a theory that Fraud Alerts tend to drop a Credit Score a bit, though we have not actually seen that in the real world.

We have, however seen potential lenders refuse to issue credit to inividuals while a fraud alert was in place, regardless of the personal identification given to prove the borrowers identity. So be aware, this can be a problem.

What a Fraud Alert does NOT do:

• block collection agencies from looking at your files
• stop junk mail and pre approved offers
  
• when applying for credit, a lender will call you on the telephone number listed on your report, make sure that number is correct before you actually place a fraud alert. You may want to purchase something on credit, and if they cannot contact you, they cannot issue credit.