is a fraud alert a big deal--limitations ?

[newportguy]

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@RobertEG wrote:

Fraud alerts are placed in a consumer's credit file ONLY at the request of a consumer of his/her designated representative.  The consumer ALWAYS has the right to simply notify the CRA to remove any fraud alert.  FCRA 695A.

When a CRA sees issues of potential fraud or identity theft, they will often take it upon themselves to infer that the consumer has construtively requested such an alert, and place it in the consumer's file.  Not necessarily bad, but the consumer can always simply instruct them to remove it.  It is not a third party process over which the consumer has no control.

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It looks to me like they have his file Mix (split) with someone else. If that's the case then it could happen without his knowledge. A few years back TU did that to me and it was a pain to get that fixed. 

[guiness56]

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@RobertEG wrote:

Fraud alerts are placed in a consumer's credit file ONLY at the request of a consumer of his/her designated representative.  The consumer ALWAYS has the right to simply notify the CRA to remove any fraud alert.  FCRA 695A.

When a CRA sees issues of potential fraud or identity theft, they will often take it upon themselves to infer that the consumer has construtively requested such an alert, and place it in the consumer's file.  Not necessarily bad, but the consumer can always simply instruct them to remove it.  It is not a third party process over which the consumer has no control.

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Robert, this is the way it is supposed to work but the CRAs do things the way they want.  FCRA or not.   I have argued and argued the fact I did not place the fraud alert on my report, because I did not. 

I have called several times and told them to remove it and was told each time that it will remain until 2015.   

If I did not place it, which I did not, who did? 

There has to be more going on than what they said.  

[Sgrig]

According to Equifax this morning, I have the option to REMOVE it, but I do not have the option to know who placed it there. All I know is that it wasn't me.

[RobertEG]

The statute stipulates that fraud alerts are invoked "upon direct request of a consumer, or an individual acting on behalf of or as a personal representative of a consumer."

It is apparently the practice of the CRAs that any notification of issues of potential identity theft provide them the authority to act on behalf of the consumer, and place the alert.

Not really all that bad, as it could provide quicker protection.  However, they should immediately lift the alert if notified by the consumer that removal is desired.

Section 605A(a)(1) stipulates that any fraud alert must be removed if so notified by the consumer. 

As to their ability to refuse to identify the source of any request for fraud alert, that directly contradicts the statutory provision of FCRA 609(a)(1), which provides:

"Every consumer reporting agency shall, upon request, and subject to section 610(a), clearly and accurately disclose to the consumer all information in the consumer's file at the time of the request..."  If they have it, they must provide it.

Section 609(a)(1) requests normally require payment of a fee to the CRA, but once a fraud alert has been placed in a consumer's file, any request under section 609(a)(1) becomes free of charge, and the requested disclosure must be provided within a statutory period of 3 business days.  FCRA 605A(a)(2)(B).