Fraud alerts (FCRA 605A) are provided only upon request of the consumer or his/her designated representative.
Creditors do not place fraud alerts in a consumer's file.
However, you will see instances of a CRA doing so. The basis is their interpretation that if fraud or identity theft issues are raised by a consumer, then that effectively acts as a consumer request for a fraud alert, so they will impose one as a de facto designated rep of the consumer. Thus, you can see an initial fraud alert pop up if you file a dispute alleging,, for example, an "account not mine."
A consuemr can always notify the CRA to remove a fraud alert at any time. They are ultimately controlled by the consumer.
Fraud alerts are provided for under the FCRA. Freezes are under either state regulation or CRA policy, and have varying additional requirments.
Fraud alerts basically require notice in the consumer's file, and require express permission of the consumer for any new or increased credit.
Initial fraud alerts last for ony 90 days, and require only an assertion of suspected fraud or identity theft.
Extended fraud alerts last for years, and require that the consumer also provide a police report in order to impose.
