It looks the end for Lifelock after a US District Judge ruled they are acting illegally when placing a fraud alert on behalf of their customers with the credit bureaus.
The case was brought by Experian who claimed it was unfair for Lifelock to charge its 1.5 million customers $10 a month only to pass on the work to experian and expect them to do it for free.
Most of the other identity theft protection companies took the hint and announced they would be dropping the fraud alerts service following the court ruling and would move their business model towards credit monitoring. Lifelock though announced they would continue for as long as possible. Presumably they mean until the public get wise and the custom dries up or the courts send in the Feds.
Lifelock have had anything but a smooth ride since the company was founded. In it’s very early days it was discovered one of the founders had a criminal record for identity theft and was also banned by the FTC from having a business dealing with credit repair. He resigned from the board but still does work for them as an ‘independent’ contractor.
Recently it came to light that there were at least 20 illegal driving licenses in circulation all in the name of CEO Todd Davis and all obtained in his name using the same social security number he was showing to all of America claiming no one could use it because it was protected by lifelock.
There was also the case of a payday loan taken out in his name for $500, the first Todd Davis knew about it was when the loan company phoned wanting their money back.
Then there are the pending class actions regarding the $1 million guarantee. Customers have found it to be worthless as the small print says Lifelock are only responsible if an identity theft occurs due to a ‘falure or defect in their service.’
As the only service they provide is to ask Experian to place a fraud alert for their customer, the chances of anyone being able to prove an illegal act against them was a fault of the Lifelock service is somewhere between zero and zilch.
Source: Lifelock Scam
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