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Is EWS lawfully denying security Freezes?

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Super Contributor

Is EWS lawfully denying security Freezes?

Read an older thread that EWS refuses to place security freezes. I also ordered noticed no option on their website even though it links to a page that says the FCRA permits security freezes.

In the last thread it was alleged that the CFPB granted an exemption to EWS. I’m wondering if anybody has learned anything more about this and if it is an lawful?
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 1 of 11
10 REPLIES 10
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Legendary Contributor

Re: Is EWS lawfully denying security Freezes?

Are you referring to a freeze or to a fraud alert?

 

Only fraud alerts are covered under the FCRA.

Freezes are separate, and their provisions vary based on their source.......

Message 2 of 11
Highlighted
Super Contributor

Re: Is EWS lawfully denying security Freezes?

Thank you for commenting RobertEG.

I’m talking about security freezes, maybe I misstated the legal source?
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 3 of 11
Highlighted
Super Contributor

Re: Is EWS lawfully denying security Freezes?


@Birdman7 wrote:
Thank you for commenting RobertEG.

I’m talking about security freezes, maybe I misstated the legal source?

From the FTC. 

 

How will Credit Freezing and/or opting out of prescreened offers affect "Specialty"? Consumer Reporting Agencies , ex: Auto insurance ? Will there be any affect on their access and accuracy of the information they can provide ?

 

The law applies only to nationwide credit reporting agencies. Please contact a business directly to ask if it offers a freeze.

 

https://www.consumer.ftc.gov/blog/2018/09/free-credit-freezes-are-here

 

Looks like it’s only the big three that are legally obligated to provide them. 




Message 4 of 11
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Valued Contributor

Re: Is EWS lawfully denying security Freezes?

Companies such as EWS, ChexSystems, Certegy, and Telecheck are major check verification companies, not credit reporting agencies. As they do not affect your credit per se, I don't think they are covered by the FCRA. 

















Your FICO credit scores are not just numbers, it’s a skill.

Message 5 of 11
Highlighted
Super Contributor

Re: Is EWS lawfully denying security Freezes?

@Saeren Insurance companies and prescreened offers use SPs, so that’s inapposite.

I’m pretty sure all those other credit reporting agency’s are nationwide especially since they’re included in the CFPB‘s manual. And I see the ability to freeze every report except EWS, Telecheck and maybe Verisk.

@Medic981 I honestly don’t know whether they are or not, and I hope @RobertEG chimes back in and guides us. Nevertheless I see the ability to freeze chexsystem and Certegy, I believe.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 6 of 11
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Valued Contributor

Re: Is EWS lawfully denying security Freezes?

Before Congress stepped in and required CRAs to offer Security Freezes post-Equifax breach, it was up to the individual state legislatures to regulate security freezes if they had them at all.

















Your FICO credit scores are not just numbers, it’s a skill.

Message 7 of 11
Highlighted
Super Contributor

Re: Is EWS lawfully denying security Freezes?

And I am by no means an expert in the matter, but I do notice that each bureau, when it speaks of a freeze, refers to the protections afforded by each individual state, so I believe it stands to reason that it may still be heavily determined by state law.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 8 of 11
Highlighted
Super Contributor

Re: Is EWS lawfully denying security Freezes?

From what I’m reading, it appears the federal law preempts state law on freezes, unless the state’s law is stronger.

For example, according to the link below, some states’ freeze laws also allow locking out insurance companies and employment inquiries with a freeze. So, I guess there’s a good reason why that question came up, @Saeren.

I’m sure the insurance industry was hoping the federal law would totally preempt the state laws, thereby granting them access despite freezes.

They were probably also concerned as to whether the states that do lock them out would be able to continue to do so under the federal legislation.

But I’m just thinking out loud after reading this article:

https://ncler.acl.gov/Files/New-Law-Provides-Free-Security-Freezes,-Increased.aspx
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 9 of 11
Highlighted
Super Contributor

Re: Is EWS lawfully denying security Freezes?

Very interesting reading look at some of the exclusions, lol, pay attention to (ii):

“(2) Exclusions.—Except as provided in paragraph (3), the term "consumer report" does not include—
(A) subject to section 1681s–3 of this title, any—
[...]
(ii) communication of that information among persons related by common ownership or affiliated by corporate control; or...
[...]
(D) a communication described in subsection (o) or (x).1
[...]
(x) Nationwide Specialty Consumer Reporting Agency.—The term "nationwide specialty consumer reporting agency" means a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis relating to—
(1) medical records or payments;
(2) residential or tenant history;
(3) check writing history;
(4) employment history; or
(5) insurance claims.”

(Source below.)

https://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title15-chapter41-subchapter3&edi...

So all you have to do is start a CRA and become affiliated by corporate control or have common ownership and then you’re excluded!

Therefore the seven banks that own EWS are totally immune from sharing the information among each other due to this exclusion.

The info is not federally defined as a “credit report” when it is shared among affiliated parties, so that’s why it doesn’t afford the federal protection, I would presume. ( States rights may still apply.)

And if that’s not enough we have the federal check writing exclusion.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 10 of 11
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