65 million paying for credit monitoring/fraud alert services on clarkhoward.com

Syndicated financial writer Kathleen Pender has calculated that 65 million Americans are paying for credit monitoring or fraud alert services right now. That's about 1 in 4 adults!

These "services" can cost you from $6 to $15 per month. They're marketed very effectively on radio, TV and the Internet and try to play on your fear.

But the real problem is that fraud alerts are routinely ignored. And with credit monitoring, you'll only learn after the fact if unauthorized lines of credit are opened in your name.

In reality, there's only one effective way to prevent criminals from using your credit to make purchases. It's called a credit freeze and Clark has prepared a guide to help you navigate the process of applying for one.

With a credit freeze, you shut down a criminal's ability to do anything with your info -- even if it should be compromised. That's because you get a secret code that only you know.

The one-time cost of a credit freeze varies by state from free to $10 per credit bureau. Compare that to a monthly fee for monitoring or reporting! Should you have to apply for new credit, you'll need to "thaw" your records. Again, the cost will be from zero to $10 per bureau.

Many talk-show hosts are currently doing spots for one popular credit monitoring/fraud alert service called LifeLock. While this is a legitimate company, Clark wants to emphasize that you shouldn't waste your money.

Our senior producer Kim froze her credit with all 3 bureaus. She used the info contained in Clark's guide and found the whole process only took her about an hour. It's all been very painless so far; she didn't even need to thaw her credit when she opened a new checking account or switched her auto insurance.

What others are saying

ease or difficulty of freeze
It's not so easy to get the credit card companies to freeze credit without paying. The response letters are very ambiguous and generic. It is probably easier to get them when they get money from the consumer but it was not easy to get them to do it for free. I am an identity theft victim and it should be free for me.
By SDMan @ 06/21/08 11:08:23 PMreport abuse
Collection Agency's wrongful claim.
I have received a court notice to respond within 30 days stating that I owe about $9000.00 to some credit card company. That credit card company gave the case to the collection agency. This is a mistaken identity and I do not owe this amount. Do I have to reply to the court notice. I called the plaintiff's office and told that you are suing the wrong person, but after one week they the plaintiff's attorney sent me another letter to settle the case. Please advice me what to do in this matter.
By Roy P George @ 06/19/08 08:31:52 AMreport abuse
credit freeze
do both husband and wife need to do this?
By Mark Cedergreen @ 06/19/08 12:34:52 AMreport abuse
Credit
In 2007 according to the FTC only 23% of Loan Fraud was 5%, credit fraud was 23% and bank fraud was 13% which means new account fraud accounted for only 41% of the ID Theft cases reported. If you became an ID Theft victim by phone or utility fraud, government documents or benefits fraud or employment fraud; fraud alerts, credit monitoring or even credit freezes will not stop these type of ID Theft.
By Lanny Britnell @ 06/18/08 06:26:10 PMreport abuse
Credit freeze easy
Clark really overstates how hard it is to freeze your credit. It takes just minutes to fill in the blank on the form letters from this site, copy the documents needed, and send them off. And within 10 days I had freezes through all 3 bureaus. Now we have one less worry on our minds. And for far less than paying for credit monitoring!
By WB @ 06/17/08 07:19:44 PMreport abuse

ease or difficulty of freeze

It's not so easy to get the credit card companies to freeze credit without paying. The response letters are very ambiguous and generic. It is probably easier to get them when they get money from the consumer but it was not easy to get them to do it for free. I am an identity theft victim and it should be free for me.

By SDMan @ 06/21/08 11:08:23 PMreport abuse

Collection Agency's wrongful claim.

I have received a court notice to respond within 30 days stating that I owe about $9000.00 to some credit card company. That credit card company gave the case to the collection agency. This is a mistaken identity and I do not owe this amount. Do I have to reply to the court notice. I called the plaintiff's office and told that you are suing the wrong person, but after one week they the plaintiff's attorney sent me another letter to settle the case. Please advice me what to do in this matter.

By Roy P George @ 06/19/08 08:31:52 AMreport abuse

credit freeze

do both husband and wife need to do this?

By Mark Cedergreen @ 06/19/08 12:34:52 AMreport abuse

Credit

In 2007 according to the FTC only 23% of Loan Fraud was 5%, credit fraud was 23% and bank fraud was 13% which means new account fraud accounted for only 41% of the ID Theft cases reported. If you became an ID Theft victim by phone or utility fraud, government documents or benefits fraud or employment fraud; fraud alerts, credit monitoring or even credit freezes will not stop these type of ID Theft.

By Lanny Britnell @ 06/18/08 06:26:10 PMreport abuse

Credit freeze easy

Clark really overstates how hard it is to freeze your credit. It takes just minutes to fill in the blank on the form letters from this site, copy the documents needed, and send them off. And within 10 days I had freezes through all 3 bureaus. Now we have one less worry on our minds. And for far less than paying for credit monitoring!

By WB @ 06/17/08 07:19:44 PMreport abuse

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Jun 17, 2008 -- 65 million paying for credit monitoring/fraud alert services

What others are saying