TRW Credentials Lack Credibility

by Rex Valve

One of the powers commonly attributed to the modem American hacker is absolute control over the credit ratings of those who oppose them.

Like all myths, this one too has a factual basis, which is probably the well-publicized invasions of the TRW credit service, documented in the 1984 editions of 2600.  Hacker visitations to TRW received widespread media coverage when Newsweek columnist Richard Sandza found his credit card numbers and similar private information posted on a hackers' bulletin board.  Subsequent investigation revealed that due to TRW's shoddy security practices, hackers had the ability to make inquiries into TRW's vast database of American consumers' credit histories.

Now TRW is offering to those same American consumers the ability to look at their own credit reports, and to see who makes inquiries.  Their new service, called "TRW Credentials," lets a credit user look at his or her credit report, receive a notification whenever anyone else gets a copy of it (such as a bank where an application for a credit card or loan is pending) and the ability to add information that may improve one's credit rating.  Anyone with or without a credit history can subscribe, as long as they're willing to fork over $35 a year.

However, a closer look at their service reveals that they are only selling a more convenient (and expensive) version of what they must already provide to you under the law.

The Fair Credit Reporting Act requires that companies who compile credit histories make their information available to the individuals in question, if they request it.  For an $8 fee (the minimal charge permitted under the act), they will send you your credit file.  The file will include a list of all institutions who have received copies of it during the past year.  If you find something in your file that is incorrect, you can protest to TRW, who will then investigate by asking the institution who provided the contested datum to verify its accuracy.  This applies to any credit history service, not just TRW.

Another feature of the Act is that if you are denied credit, such as being refused for a loan or credit card, you can (within 10 days) request a copy of your credit file without needing to pay the fee.

Well, this is America, and there's nothing wrong with companies trying to sell you something that you should already have.  To make it look like you're buying more than the Fair Credit Reporting Act, TRW adds on a "Financial Profile" form, which supposedly lets you add information to your credit file that may improve your chances at getting credit.

But there's nothing you can put on this form that can't be put on an ordinary loan application, and the subscribing credit grantors (such as banks or department stores that also subscribe to TRW Credentials) that might look at this information receive it on a separate form.

It tums out that all TRW is saving you is the trouble of filling out a credit application all the way.  On top of this they throw in insurance against unauthorized use of your cards (which the law already protects you against, beyond the first $50), and the ability to send your credit report to credit grantors elsewhere in your state, should you want to shop around for a loan (but only if you live in California or New York, and only with credit grantors who already subscribe to TRW Credentials).

All-in-all, a dubious value.