Question about charge offs and authorized users

[rocketsfan85]

My mom has some charge offs on her report.  If I add her as an authorized user on my credit card will that trigger any action from the collection companies against her?

[Chopbrocoli]

It's certainly possible.  For an example, many CA's subscribe to a monitoring service that tracks the customers contact information, improvement in payment history, account changes, etc. Adding her as an AU can notify the CA that she has a new account with an available credit limit that can be utilized. Or if a collector notices that she has a card with X amount of available usage, the collector can certainly use that to his advantage. 

[bichonmom]

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@Chopbrocoli wrote:

It's certainly possible.  For an example, many CA's subscribe to a monitoring service that tracks the customers contact information, improvement in payment history, account changes, etc. Adding her as an AU can notify the CA that she has a new account with an available credit limit that can be utilized. Or if a collector notices that she has a card with X amount of available usage, the collector can certainly use that to his advantage. 

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Doesn't opting out w/the CRAs prevent this?

[Chopbrocoli]

Unfortunately it does not. Opting out is only applicable to pre-approved/ pre-screen offers offered by credit and insurance firms.

The service basically monitors  the customers credit report  as well as other available data. 

[bichonmom]

When I first found this forum last month, I read many posts like this one:

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Opting-out/m-p/835410/message-uid/835410/high...

So, I immediately opted out of all 3 CRAs. Are you saying that by opting out, I'm only missing out on pre-approvals and am not preventing anyone from crawling out of the woodwork?

I'm curious about what this service is and how they would have access to our personal information. Aren't there any privacy laws protecting us from this?

[Chopbrocoli]

This is the only opt-out I'm aware of. --->>>  https://www.optoutprescreen.com/?rf=t

CA's that have a subscription with the CRA's to pull credit reports can also subscribe to the consumer credit report monitoring (ie: triggers). CA's with permissable purpose may view the customers credit report at anytime. Unless we placed a credit freeze, that might block a CA from viewing our report. I'll have to look into it futher in regards to that alternative.

[bichonmom]

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@Chopbrocoli wrote:

This is the only opt-out I'm aware of. --->>>  https://www.optoutprescreen.com/?rf=t

CA's that have a subscription with the CRA's to pull credit reports can also subscribe to the consumer credit report monitoring (ie: triggers). CA's with permissable purpose may view the customers credit report at anytime. Unless we placed a credit freeze, that might block a CA from viewing our report. I'll have to look into it futher in regards to that alternative.

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That's the opt-out that I did, and all 3 of my CRs reflect that I am opted out.

There are many heated discussions here about whether or not freezing prevents a CA from pulling our rept., and based on what the CRAs say, it does not. That's not my issue, as I have not frozen my CRs.

I'm just concerned that what you're saying is that CAs can be notified any time there is any activity on our CR, which is different than their pulling our CR because we happened to be on their minds or their to do list.

Once we have opted out, it seems like it would be a violation of our privacy for CRAs to notify CAs (or anyone else, for that matter) that, Hey, Jane Smith just applied for credit with ABC Bank, thereby provoking the CAs to resume their collection activity.

[Chopbrocoli]

Once again, the opt-out is applicable to solicitation purposes only. The triggers/ credit report monitoring, credit reports, and skiptrcace monitoring of the debtor is permissible purpose.

[bichonmom]

Well, then it appears I opted out for nothing. I'd actually *like* to get pre-approvals to prevent me from possible denials when I apply. Bummer.

[Chopbrocoli]

You can always go back to optoutprescreen.com and opt-in!!