Defending the Truth

athloi alerts us to an opinion piece running in USA Today on the backlash against an effective tool to fight identity theft. The big three credit bureaus don't like the numerous state laws that have been passed requiring them to give consumers a simple way to freeze their credit. Watch for a push at the federal level to get a watered-down statute that pre-empts state laws.

"Lawmakers across the country — pushed by consumer advocacy groups — ... have passed laws that allow consumers to freeze their credit, a surefire way to prevent thieves from opening new accounts or obtaining a mortgage in a consumer's name. Under a freeze, a consumer cuts off all access to his credit report and score, even his own. All lenders require that information, so no one can borrow money in the consumer's name until he or she lifts the freeze. It's simple, and it works. So, of course, it's under threat from the Consumer Data Industry Association, which represents the Big Three credit bureaus. They make millions gathering and selling consumer data. Freezes cut into that business."

I've seen some articles on this, and evidently the system pretty much is NOT in your favor.

A person who has had their identity stolen has to do essentially ALL the work to restore his/her credit rating. It often takes several months, if not years to repair the damage.
These companies have virtually zero LIABILITY to require them to verify that the person they are giving out the $$$ is actually you.

The credit card agencies in this country are an unbelievable scam that would be criminally guilty of usury in any other setting. Just another way this country works in favor of big business, and the average Joe can get easily screwed.

It's pretty said... in many ways it's like organized crime...

Credit card companies suck, not only is it too easy for someone to steal your identity, It's way too easy to dig your own grave and put yourself in debt over your head.

I am really disgusted by the number of ads I see on T.V. that are boasting predatory lending practices, like all these payday loan places... It's really sad, they are preying on the poor.

Once you fall into the trap it becomes nearly impossible to ever get out, let alone get ahead...

Oh, I like the Rent-A-Center ads.

Pay $2500 for a $200 dollar sofa!!!

And have you ever seen the interest rates on some of these payday advance companies? 97.71%!!!

I few years back my family had a bit of bad luck and I had to get one of those payday advances.

I borrowed $250. They started taking $90 a week out of my checking account for 6 weeks before I closed that checking account. Now, by anybody's math, I paid back more then double what I borrowed, all in a month and a half.

Next thing I know, I'm getting threatening phone calls from some guy masquerading as a federal investigator, saying that if I didn't give them more money, they would be coming after me for federal charges. I got pretty scared, but then I started thinking about it, and it didn't really make sense. So I did a google search on the phone number the guy gave me, and it turns out this payday advance company impersonates federal officials all the time to scare people into giving them more money.

When the guy called back, I said "Look, bud, I know you aren't with any Federal agency, and I know you are trying to extort money from me. If you don't want me to call the cops on you, you better not call back. I paid the loan back with plenty of interest, so don't bother me anymore".

I never heard from them again.

Oh yeah... And they can go higher!

Years ago, interest over 22% was considered loan sharking in most states. Big business apparently also owns the state level governments in this country. Even credit cards can charge up to 29.99% legally. All in the name of being able to give 'questionable' people loans.

It's sick.