free credit reports without being denied or subscribing to a service

From: djgordon (danigordon_at_bellsouth.net)
Date: 12/16/04 

Date: Thu, 16 Dec 2004 00:12:06 -0600

New federal law to help consumers prevent identity theft
By Raed G. Battah, The Daily News, Bowling Green, Ky.
Source: Knight Ridder/Tribune Business News

New federal legislation taking effect this month will help consumers prevent
identity theft. The legislation forces credit bureaus to provide people with
their credit history information for free.

"(Fair and Accurate Credit Transaction Act) was pushed by consumer advocates
who wanted the information that creditors share with each other," said Kevin
Porter, president of Alliance Credit Counseling. He lives in Charlotte,
N.C., but his credit counseling service is available to Bowling Green
residents.

"The information became available on Dec. 1 for citizens in California,
Oregon, Washington, Idaho, Montana, Colorado, New Mexico, Arizona, Wyoming
and Utah," Porter said. "It is recommended people check once a year to
prevent identity theft." He said the big three credit report agencies --
Experian, TransUnion and Equifax -- are all party to the legislation and
will provide the reports through a staging process. Certain parts of the
country will be activated first, preventing an overload of requests.
Kentuckians will be eligible for the service in June.

However, there are exceptions to the wait.

"Part of FACTA was to launch www.annualcreditreport.com which entitles every
American consumer -- about 200 million -- to a free credit report each year.

Also, if you have been denied credit in the past year, you are immediately
eligible," he said.

Personal credit information has become a major tool for identity theft
culprits. Porter himself once discovered that someone had wanted to steal
his credit information.

"Somebody tried having a credit report done on me while attempting to rent
an apartment in Ohio," he said.

FACTA creates a procedural standard that all credit-reporting agencies must
follow to ensure that requests for credit are legitimate.

People east of the Rockies can go to any number of Web sites and receive a
"free" credit report. Often, however, the reports require you to provide a
credit card number and actually buy the service, then turn around and cancel
it for a refund.

Consumer advocates called for the legislation after it was clear the current
system didn't effectively protect against identity theft.

"I went to buy some things on a Sunday and my credit card was denied twice,"
said Kim Pelham, a former western Kentucky resident who now works as a
promotions manager for a north Florida distribution company. "I knew I had
money in my account. I checked my account online and saw these purchases I
hadn't made." Her account had been used to purchase over $4,000 in groceries
and hardware.

"There was a $1,300 charge at a Japanese restaurant in San Mateo,
California," Pelham said. "There were also charges ranging from $50, $75,
$85 at different hardware stores and $300-$400 for groceries.

"I called my local branch bank of Wachovia," she said, "And it was only then
that the main corporate bank called to inquire about the suspicious
charges." Pelham said she has not contacted law enforcement about the case.

"I wouldn't even know where to start," she said. "The bank canceled the
account and refunded all my money." Pelham can only speculate how she became
a victim.

"I must have ordered something online or used my credit card and someone
wrote my number down," she said. "These people didn't try buying anything
online, they just went into these places, probably with a fake card and must
have claimed to be having problems with the magnetic strip. Then they just
told (the merchant) to punch in the numbers." Local law enforcement
encourages people to be aware of their credit history.

"We've done presentations on identity theft at churches and for various
organizations," said Bowling Green Public Affairs Officer Jerry Corbitt. "We
tell people that whatever paper they have with personal identifiers on them
to destroy them." Corbitt offered a bit of holiday shopping advice.

"Shredders make a great present," he said, "especially now because they're
so inexpensive." Corbitt said thieves will go through mailboxes and trash to
get personal information. He warned against giving out personal information
over the telephone.

Corbitt has noticed a steady increase in identity theft during his 16 years
as a police officer.

"It is now almost a daily occurrence to have fraudulent activity reported to
us," he said. "It is often the result of people just not taking the time to
check their credit history." Corbitt said having your credit checked is
still the most effective way to combat identity theft. He recommends
checking credit history once a year.

"Just don't sit back and wait for it to happen to you," he said.

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