Are the credit reporting agencies selling your name?

Recently I met with a group of Bankers who had many questions about being solicited by various companies.

These companies, Debt Settlement, Credit Card, Mortgage, Loan Modification and even Credit Restoration firms buy lists from the Credit Reporting Agencies of specific categories of consumers. This is a huge source of revenue for the Credit Bureaus (Experian, Trans Union, and Equifax).

Since their business is about gathering detailed information about all consumers including their spending habits, debt accumulation, home ownership status, and much more it makes perfect sense that they would use this information to make more profits. These lists are available to any business for the right price.

How often have we been interrupted by a phone call, at the worst possible moment, to find out we are approved for the “opportunity” to have our debt settled for a fraction of the price, refinance our mortgage, restore our credit, buy life or car insurance at better prices and much more?

I have heard of business’s getting these solicitations as well. We find they come in many forms such as mail, email, and of course phone calls. Most people these days keep a shredder near the desk they use to read mail so they can dispose of all the credit card offers (and more) securely. Sometimes the email solicitations are even worse but that may come from different sources as well.

After giving you a picture of all the negatives associated with these solicitations it is important to understand the positives too. Many times we learn more about what is available, scam or valid, and are given new ideas about our choices when we engage these solicitors. I personally learn about many scams by listening and evaluating what I hear and read from this information. Of course that includes the radio advertisements as well but those we invite into our lives and are not forced to deal with. I have found that a variety of consumers call us asking questions about their choices after speaking with companies that have contacting them through these lists. Consistently they are asking their CPA’s , Financial Planners, Mortgage Experts, or trusted friends who refer them to us for advice.

When interviewing these consumers we uncover the information they are given by the sales rep is usually a portion of the truth. Many factors of great consequence are withheld, such as, the tax ramification of settling debt, the ratios of savings, the credit score decrease and time it takes for the credit to recover, etc. It is helpful to remember, in most cases, these calls have motivated consumers to pursue more information about the choice they have been offered and many times leads them to a better solution for their situation.

If you still would like to opt out of being solicited via the credit reporting agencies I am providing information taken directly from the Federal Trade Commission’s site which is listed below for verification.

http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt063.shtm

“The credit bureaus offer a toll-free number that enables you to “opt-out” of having pre-approved credit offers sent to you for five years.

Call 1-888-5-OPTOUT (567-8688) or visit www.optoutprescreen.com for more information. When you call, you’ll be asked for personal information, including your home telephone number, your name, and your Social Security number. The information you provide is confidential and will be used only to process your request to opt out of receiving pre-screened offers of credit. In addition, you can notify the three major credit bureaus that you do not want personal information about you shared for promotional purposes-an important step toward eliminating unsolicited mail. Write your own letter or use the information (SEE BELOW) to limit the amount of information the credit bureaus will share about you. Send your letter to each of the three major credit bureaus:

Experian
901 West Bond
Lincoln, NE 68521
Attn: Consumer Services Department

Trans Union
Name Removal Option
P.O. Box 505
Woodlyn, PA 19094

Equifax, Inc.
Options
P.O. Box 740123
Atlanta, GA 30374-0123″

The letter should have the date, your full name, social security number, date of birth, address and previous address (if moved within the last 2 years). It should state: I request to have my name removed from your marketing list. Attaching proof of address and your social security number is a good idea as well.

Direct Marketers – Telemarketing

The federal government has created the National Do Not Call Registry – a free, easy way to reduce the telemarketing calls you get at home. To register your phone number or to get information about the registry, visit www.donotcall.gov, or call 1-888-3821-222 from the phone number you want to register. You will get fewer telemarketing calls within 31 days of registering your number. Telephone numbers on the registry will only be removed when they are disconnected and reassigned, or when you choose to remove a number from the registry.

Mail

The Direct Marketing Association’s (DMA) Mail Preference Service lets you opt out of receiving unsolicited commercial mail from many national companies for five years. When you register with this service (for a $1.00 fee), your name will be put on a “delete” file and made available to direct-mail marketers. However, your registration will not stop mailings from organizations that do not use the DMA’s Mail Preference Service. To register with DMA’s Mail Preference Service, go to www.dmachoice.org.

Email

The DMA also has an Email Preference Service to help you reduce unsolicited commercial emails. To opt out of receiving unsolicited commercial email from DMA members, visit www.dmachoice.org/EMPS. Your online request will be effective for five years.”

Good Luck!!

“Great credit brings great opportunity!!”
Copyright © 2009 North Shore Advisory, Inc.



One Response to “Are the credit reporting agencies selling your name?”

1. Tracy Becker says:

   November 13, 2010 at 5:45 pm

   Thanks