ID protection

warnski

Hi everyone - sorry if I'm covering old ground but am struggling to find answers by scouring the site...

My new debit card provider is trying to persuade me to spend £60 a year on ID protection. For my money I would get access to view my own credit history (I realise I can do this for £2 anyway!) and also free legal cover etc etc in the event of anyone committing credit fraud against me. The service also includes e mail notification of any changes to my credit history, so I would know if this was because of my own actions or not.

Am I right in thinking that this is unnecessary expense? Or do you think it would be worthwhile to be covered??

Opinions please

NickX

warnski wrote: »

Am I right in thinking that this is unnecessary expense?

Yes

Your liability to identity fraud is covered by UK legislation anyway, so IMO this is not necessary and is simply a money making exercise.

warnski

Nice one, I thought as much. Told em I wasn't interested, but just wanted reassuring! thanks

DestroyingAngel_2

warnski wrote: »

Hi everyone - sorry if I'm covering old ground but am struggling to find answers by scouring the site...

My new debit card provider is trying to persuade me to spend £60 a year on ID protection. For my money I would get access to view my own credit history (I realise I can do this for £2 anyway!) and also free legal cover etc etc in the event of anyone committing credit fraud against me. The service also includes e mail notification of any changes to my credit history, so I would know if this was because of my own actions or not.

Am I right in thinking that this is unnecessary expense? Or do you think it would be worthwhile to be covered??

Opinions please

If you haven't got a policy to protect your ID, you can view your own credit history via Experian/Equifax for £2 PER TIME, not PER YEAR... which means if you check your credit history every week, this would come to £2x52 = £104. It depends how paranoid you are about your credit rating...if you like to keep tabs on it every day, then the £60 per year your debit card provider is charging you is a sweet deal.

You'd be notified by e-mail or text message to your mobile phone (or by letter if you didn't have either), whenever there's anything suspicious on your credit rating. For example, if there's been an application for a loan or a mortgage in your name, you'd be asked to confirm if YOU made the application. The legal assistance bit comes in if you say you never made that application for credit ... then you'd be assigned a caseworker who will
essentially do the work you'd have to do otherwise, to clear your name and restore your credit rating.

NickX, UK legislation DOES NOT cover ID fraud. You're confusing credit card fraud with ID fraud. While on the subject of credit card fraud, most banks will cover your credit card AFTER you've informed them of a loss/theft, but not BEFORE. With card protection as offered by the likes of CPP or Sentinel or CardGuard etc, you're covered even BEFORE your card is lost or stolen.

Fraudsters don't have to steal your credit card to commit credit fraud. Banks won't do credit checks if someone just wants to open a bank account, as they're not offering credit. So, if a fraudster has 2 forms of identity, eg a driver's licence and birth certificate (both of which are easily obtainable if you just think about it), they've got a foot in the door already. Leave that account open and innocent for a year, and then ask for a credit card, and the bank is likely to comply. Any credit checks, of course, will be in YOUR name, and if you're not insured, you just won't find out until the debts start mounting up and threatening letters start arriving on your doorstep.

Of course, detractors will say this is a simplistic view. How about this - any ID fraud against your name might not be as bad as painted above ... but then again, it could be much worse?!

Didn't people say household insurance was an unnecessary luxury before it became a necessary clause of mortgage-lending? Wasn't the same said about vehicle insurance before it became law? The way things are going, it won't be long before 1) card protection and 2) ID protection become a necessary part of obtaining a credit card or opening a bank account!

NickX

DestroyingAngel wrote: »

NickX, UK legislation DOES NOT cover ID fraud. You're confusing credit card fraud with ID fraud.

Didn't people say household insurance was an unnecessary luxury before it became a necessary clause of mortgage-lending? Wasn't the same said about vehicle insurance before it became law?

Sorry, but your not right, the legislation is not limited to Credit Cards only. If your identity is stolen, you can report it to the police and\or any financial institutions involved and they are obliged to investigate. As the victim, you have rights that have to be adhered to.

Everything that these policies purport to do, you can do yourself for free. They are a con.

As for paying £2 to check your credit files, just get a Capital One card and you get updates for free.

Its interesting that you say that CPP, Sentinel & CardGuard offer protection BEFORE you card is lost or stolen. I wonder how they do that, perhaps they have psychic abilities.

As for suggestions that Household Insurance and Car Insurance were thought of as unnecessary, I have no such recollection, and as these are the most valuable assets in my (and I suggest most others) possession, then I would not leave them uninsured whatever the law.

Scousebird_2

NickX wrote: »

Sorry, but your not right, the legislation is not limited to Credit Cards only. If your identity is stolen, you can report it to the police and\or any financial institutions involved and they are obliged to investigate. As the victim, you have rights that have to be adhered to.

Everything that these policies purport to do, you can do yourself for free. They are a con.

As for paying £2 to check your credit files, just get a Capital One card and you get updates for free.

Its interesting that you say that CPP, Sentinel & CardGuard offer protection BEFORE you card is lost or stolen. I wonder how they do that, perhaps they have psychic abilities.

As for suggestions that Household Insurance and Car Insurance were thought of as unnecessary, I have no such recollection, and as these are the most valuable assets in my (and I suggest most others) possession, then I would not leave them uninsured whatever the law.

In today's climate do you not consider your identity to be valuable too-because once a fraudster has cloned your ID-they can run wild and ruin your credibility and identity. You can report fraud to the police-but if someone does take out products in your name-the police will not help you recover your identity-nor write to all the credit reference agencies to submit notices of correction or pay for your credit file access from all 3 major agencies, nor will they liase with the companies who the fraudster has gone to-if they were successful, to have the debt cancelled. They will provide you with a case number and victim support to safeguard you in future-but all the running around if something does happen is very much on the onus of the victim so for the cost of a few pence a day (I think in this case 16p)-you have peace of mind and regular updates if anything adverse or untoward happenes.

In contrast, you need to consider-what would you spend £1.15 a week on-two newspapers (that you leave in your staff room after dinner) or maybe a bottle of pop or even a loaf of bread....for that you have protection and professional support, should the worst happen!!

NickX

Scousebird wrote: »

In today's climate do you not consider your identity to be valuable too

Yes I do, but the difference is that if my identity was stolen, I believe that I could resolve the situation without the need for the intervention from an insurance company.

However, if my car was stolen or my house was burnt down then I would be left with nothing without insurance.

James

Best way to protect yourself from ID Theft (Application Fraud) is try the following:

From the East of Scotland Fraud Forum (Click here).

Additional Benefits.

ALL lenders get an indication and warning of attacks on YOUR file.

Even in you change address you are protected.

After you leave this world, your nearest and dearest are protected.

It's absolutely FREE to enroll into (apart from postage)

Hopefully Martin will add it to 'Ones Not To Miss'

Taks

DestroyingAngel wrote: »

NickX, UK legislation DOES NOT cover ID fraud. You're confusing credit card fraud with ID fraud. While on the subject of credit card fraud, most banks will cover your credit card AFTER you've informed them of a loss/theft, but not BEFORE. With card protection as offered by the likes of CPP or Sentinel or CardGuard etc, you're covered even BEFORE your card is lost or stolen.

Please note, that card protection policies such as those above DO NOT cover for ID theft. They are for LOST AND STOLEN cards only. Lots of people get this one mixed up