TransUnion LLC entered into a partnership with LifeLock. The partnership allows LifeLock and TransUnion to automate the process of alerting customers of potential unauthorized access via their credit reports.
Consumers pay LifeLock to give them annual credit reports and to place and renew 90-day fraud alerts on their reports at the three major bureaus. Both services are available directly from the bureaus for free. Until last week LifeLock typically placed alerts through the same toll-free number the bureaus offer consumers for this purpose (the Arizona company is granted a limited power of attorney by the consumer). In the new system, which took effect Dec. 12, all requests for fraud alerts are placed electronically. TransUnion sends the confirmation directly to LifeLock instead of mailing it to the consumer. LifeLock has also agreed to pay TransUnion for a copy of the consumer’s credit report, rather than request the annual free report each consumer is entitled to. (It still requests the free report from Experian and Equifax Inc.).
LifeLock Inc., which places fraud alerts on consumers’ credit reports for a fee, says its pact with the credit bureau TransUnion LLC shows that its controversial business model is gaining acceptance. The Tempe, Ariz., company has had a contentious relationship with Experian, which sued LifeLock in February for what it called an abuse of fraud alert systems. Experian called this tactic “posing as the consumer.” It also complained about the costs to the bureau of continuously renewing fraud alerts, which Experian argued were meant to be used only when a consumer believed an identity theft was imminent. Experian’s suit against LifeLock is pending. Source: The Asian Banker
