Credit Karma risky?

[cocomadd]

Hi all,

My husband and I have opted out of prescreenings via the website and the CRA's.  But we have been victims of zombie debt collectors recently, seems like there has been some sort of way they have been informed that our scores are increasing, thus making them think that it is time to collect. 

Do you think Credit karma is somehow alerting these companies or selling our information??  It seems like everytime we get a credit increase we then also get a ding on our credit decreasing our scores?? If you look at our credit score graphs they look like roller coasters!!!

Anyone out there have thoughts on this??

Thank you!

[unusuallyconfused]

In regards to Credit Karma, the best answer you can get is from Credit Karma themselves: 

source: https://www.creditkarma.com/about/privacy

2. How and When Do We Disclose Other Information To Third Parties?

Credit Karma does not sell or rent your Personal Information to third parties for any purpose. Credit Karma only shares Personal Information with companies or individuals who are not our agents or services providers when we have your consent, or as otherwise permitted by this policy.

Credit Karma may share with third parties certain pieces of aggregated, non-Personal Information, such as the number of users who clicked on a particular advertisement. Such information does not identify you individually.

So....according to this, from CK's "Privacy Policy", the answer is "no" - zombie debt collectors aren't getting any information from CK about you.

As to why you're suddenly getting zombie debt collectors contacting you, who knows? I don't. But the above should answer the main part of your question regarding CK.

[rckstrscott]

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@cocomadd wrote:

Hi all,

My husband and I have opted out of prescreenings via the website and the CRA's.  But we have been victims of zombie debt collectors recently, seems like there has been some sort of way they have been informed that our scores are increasing, thus making them think that it is time to collect. 

Do you think Credit karma is somehow alerting these companies or selling our information??  It seems like everytime we get a credit increase we then also get a ding on our credit decreasing our scores?? If you look at our credit score graphs they look like roller coasters!!!

Anyone out there have thoughts on this??

Thank you!

---

opting out doesn't stop zombie debt. Myth myth myth myth myth

Opting out is for pre screening. Period. 

Some zombie collectors use promotional screening as a back door it to try to shoot a fish in a barrell, but the truth is the CRAs sell services to collection companies, just like the sell reports to us. If you have a debt, a collection company can find you, especially if they subscribe to the services provided by CRAs

The unfortunate truth is your zombie debt is coming back because that debt exists in whatever fashion it exists. CK isn't alerting CAs, your report is being flagged byt the CRAs own services.

-scott

[rckstrscott]

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@cocomadd wrote:

Hi all,

My husband and I have opted out of prescreenings via the website and the CRA's.  But we have been victims of zombie debt collectors recently, seems like there has been some sort of way they have been informed that our scores are increasing, thus making them think that it is time to collect. 

Do you think Credit karma is somehow alerting these companies or selling our information??  It seems like everytime we get a credit increase we then also get a ding on our credit decreasing our scores?? If you look at our credit score graphs they look like roller coasters!!!

Anyone out there have thoughts on this??

Thank you!

---

Further reading as an example:

http://www.experian.com/business-services/collection-of-debt.html

"

Features and Benefits

• The user controls expenditures by only selecting the data elements needed
• Integration with our MetroNet® skip tracing service offers access to multiple phone databases, enhancing dialer productivity and right party contact
• Summarizes credit and noncredit data, allowing collectors to make decisions immediately

Flexible and Customizable to Meet Your Unique Needs

• Design effective collection strategies using a wide variety of credit-based scoring models, including industry-specific models
• Available via Internet or batch delivery
• Customize your data requirements with each file you submit for processing
• Easy integration into your existing collection account management process"

As you continue to improve your credit score, you become a more attainable goal for colleciton companies. These services, like the ones Experian provides, is similar to how credit scoring works for the consumer, however in reverse.. instead of the score being to show 'credit worthiness', the CA's are buying services to that gauge your ability to pay and the likelyhood you would pay.

-scott

[pizzadude]

+1. The CRAs sell services known as "collection triggers" to CAs which alert them when certain things happen on your credit report, like mortgage inquiries appearing, or new accounts, etc...

There's no way to unsubscribe from these unfortunately.

[MaRain]

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@cocomadd wrote:

Hi all,

My husband and I have opted out of prescreenings via the website and the CRA's.  But we have been victims of zombie debt collectors recently, seems like there has been some sort of way they have been informed that our scores are increasing, thus making them think that it is time to collect. 

Do you think Credit karma is somehow alerting these companies or selling our information??  It seems like everytime we get a credit increase we then also get a ding on our credit decreasing our scores?? If you look at our credit score graphs they look like roller coasters!!!

Anyone out there have thoughts on this??

Thank you!

---

I agree with the other posters and would say no. After receiving a confirmation letter from EX, CA's have not looked at my credit reports since (when I opted out, the CA's stopped looking at my EQ and TU only). I know that the CA's have permissible purpose to do so but it seems that without "notification", they have stopped looking at my reports. Before I opted out, each time I applied for credit or had inquiries, usually within 48 hours he CA's would pull my reports (I pull my reports at least 1x each week but usually more and have seen this trend). I have initiated 4 credit inquiries (not including the paid/free credit monitoring updates) and no CA's have peeked at my credit since the opt out from EX. 

In my case, EX didn't opt me out until I contacted them directly to do so. EQ and TU did it after I opted out through the website. 

[rckstrscott]

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@MaRain wrote:

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@cocomadd wrote:

Hi all,

My husband and I have opted out of prescreenings via the website and the CRA's.  But we have been victims of zombie debt collectors recently, seems like there has been some sort of way they have been informed that our scores are increasing, thus making them think that it is time to collect. 

Do you think Credit karma is somehow alerting these companies or selling our information??  It seems like everytime we get a credit increase we then also get a ding on our credit decreasing our scores?? If you look at our credit score graphs they look like roller coasters!!!

Anyone out there have thoughts on this??

Thank you!

---

I agree with the other posters and would say no. After receiving a confirmation letter from EX, CA's have not looked at my credit reports since (when I opted out, the CA's stopped looking at my EQ and TU only). I know that the CA's have permissible purpose to do so but it seems that without "notification", they have stopped looking at my reports. Before I opted out, each time I applied for credit or had inquiries, usually within 48 hours he CA's would pull my reports (I pull my reports at least 1x each week but usually more and have seen this trend). I have initiated 4 credit inquiries (not including the paid/free credit monitoring updates) and no CA's have peeked at my credit since the opt out from EX. 

In my case, EX didn't opt me out until I contacted them directly to do so. EQ and TU did it after I opted out through the website. 

---

You pull your actual CRA report every week? Because you don't see soft inquiries on consumer reports. Only the actual ones from the CRAs show soft pulls, which seems like an awful lot of money just to check softs, IMO. 

I am glad you had positive results from optiing out. I don't think it is a bad thing to do, and yes, it can stave off cheapskate CA's who are looking for cheap information I suppose.

However, Opting out from prescreening does not eliminate zombie collections. The CRAs sell services to collection companies that have nothing to do with opting out, and there is no way to opt out from the services they sell to collection companies. 

-scott

[cocomadd]

I heard the same thing about Experian.  When my husband did a trial membership with them a zombie debt collection popped up from 2007.  We contacted them directly and asked to be opted out too. 

Thank you all for the advise and Credit Karma info. 

[MaRain]

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@rckstrscott wrote:

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@MaRain wrote:

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@cocomadd wrote:

Hi all,

My husband and I have opted out of prescreenings via the website and the CRA's.  But we have been victims of zombie debt collectors recently, seems like there has been some sort of way they have been informed that our scores are increasing, thus making them think that it is time to collect. 

Do you think Credit karma is somehow alerting these companies or selling our information??  It seems like everytime we get a credit increase we then also get a ding on our credit decreasing our scores?? If you look at our credit score graphs they look like roller coasters!!!

Anyone out there have thoughts on this??

Thank you!

---

I agree with the other posters and would say no. After receiving a confirmation letter from EX, CA's have not looked at my credit reports since (when I opted out, the CA's stopped looking at my EQ and TU only). I know that the CA's have permissible purpose to do so but it seems that without "notification", they have stopped looking at my reports. Before I opted out, each time I applied for credit or had inquiries, usually within 48 hours he CA's would pull my reports (I pull my reports at least 1x each week but usually more and have seen this trend). I have initiated 4 credit inquiries (not including the paid/free credit monitoring updates) and no CA's have peeked at my credit since the opt out from EX. 

In my case, EX didn't opt me out until I contacted them directly to do so. EQ and TU did it after I opted out through the website. 

---

You pull your actual CRA report every week? Because you don't see soft inquiries on consumer reports. Only the actual ones from the CRAs show soft pulls, which seems like an awful lot of money just to check softs, IMO. 

I am glad you had positive results from optiing out. I don't think it is a bad thing to do, and yes, it can stave off cheapskate CA's who are looking for cheap information I suppose.

However, Opting out from prescreening does not eliminate zombie collections. The CRAs sell services to collection companies that have nothing to do with opting out, and there is no way to opt out from the services they sell to collection companies. 

-scott

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I do pull my actual reports directly from the CRA's (which includes soft pulls) multiple times using "tricks of the trade" So I don't pay anything but I get the benefit of seeing my actual reports and can get on top of issues as they arise (works for me as long as I don't split my files). And before anyone asks how, just do a search of the internet, the info is out there. 

I completely agree that zombie debt is not eliminated and that the debt can be resold multiple times until it's paid so opting out is not a end all solution that will ban it from popping up later (but it sure makes a great band-aid).