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Public Knowledge Center |
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Opt-Out! Stop Pre-Approved Credit and Insurance Offers
Potential credit issuers and insurers purchase consumer information from the credit bureaus based on sets of specified criteria and then mail offers to these consumers in hopes that they will become a customer.
The pre-approved (pre-screened) credit offers and convenience checks that you receive each week and perhaps toss into the garbage are like gold to identity thieves. Dumpster-diving thieves will retrieve these offers and any other personal information that they might be able to obtain from your garbage. They then complete and return the forms, along with a quick change of address, and obtain the convenient credit that you had been offered. They receive the convenience check funds or their new credit card, quickly max out the available credit line in your name, and leave you with the bill and the burden of cleaning up the mess.
In a June 15, 1999 article by Edmund Sanders in the L.A. Times entitled "Charges are flying over credit card pitches", it was reported that at that time credit issuers mailed out over 3.4 billion pre-approved credit offers in 1998 alone. This number has increased each year as more and more types of cards are offered, with recent estimates now approaching 10 billion annually. Many consumers regularly throw them into the garbage along with the rest of their junk mail and unwanted solicitations, without an understanding of the dangers and possible consequences.
How easily can a thief take advantage of these pre-approved offers?
All too easily. To illustrate, the following are some interesting reported cases illustrating the careful review and processing of pre-approved credit offers by overeager credit grantors:
Example #1: A dog's owner received a pre-approved credit offer in the name of his dog. Thinking the situation to be humorous, he decided to have some fun with it by completing and returning the acceptance form.
On the form, the man listed the dog's full name as "Clifford J. Dawg". He wrote that the dog's mother's name was "Pugsy Malone", listed the dog's employer as "The Pupperoni Factory", and provided the dog's Social Security number as "000-00-0000". The man even went so far as to write on the front of the application, "You are sending an application to a dog! Ha! Ha! Ha!".
The result? "Clifford J. Dawg" was issued a platinum card with a credit limit of $1500 accepted worldwide.
Example #2: In similar, though unrelated case, "Monty the Shih-Tzu" reportedly received a credit line of $24,600.
How Do I Stop the Flood of Pre-Approved Offers?
As a consumer, you can and should elect to "opt-out" of these pre-approved offers and marketing lists sold by the credit bureaus. To "Opt-Out" of these pre-screened and pre-approved offer lists, you can visit the "Opt-Out" website established by the credit bureaus, or call the toll free opt-out number. (One call will temporarily remove your name from the lists of the three major credit bureaus: Equifax, Experian, and TransUnion.)
Opt-Out Website: www.optoutprescreen.com
Online registration: Consumers can opt-out for a period of five years, or permanently opt-out by mailing in the form that is produced during the online opt-out registration process.
Opt-Out Toll Free Number: 1-888-5-OPT-OUT*
*Within approximately two weeks, you should receive a confirmation letter to complete and return, which confirms that you wish to be permanently removed from these lists. If you do not return this letter, your name will be returned to the lists.
It can generally take 60 to 90 days before you will begin to see a noticeable reduction in the number of credit offers that you receive. However, not every prospective credit provider uses the lists offered by the credit bureaus. Consumer information is purchased and resold by thousands of companies, and you will still receive some offers.
©Copyright 2008 by Michael Barnett. All rights reserved. Unauthorized use, copying, or distribution without permission is prohibited.
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