Consumer complaint received 2023-01-23 00:00:00
Product: Credit reporting, credit repair services, or other personal consumer reports — Other personal consumer report
Issue: Improper use of your report — Reporting company used your report improperly
Company: Experian Information Solutions Inc.
State: IL

Complaint narrative:
RE : Complaint Against Clarity Services Inc., a Part of Experian To Whom It May Concern, I am writing to file a complaint against Clarity Services Inc., a part of Experian, for demanding a copy of my social security card as a requirement to put a security freeze on my credit information. This demand is in violation of several laws and regulations related to the collection and use of personal identification information. Under the Fair Credit Reporting Act ( FCRA ) : 15 U.S.C. 1681c-1 ( a ) ( 1 ) ( A ) : This section of the FCRA requires consumer reporting agencies to place a security freeze on a consumer 's credit report upon their request.

15 U.S.C. 1681c-1 ( c ) ( 1 ) : This section of the FCRA specifies the information that a consumer must provide to the credit reporting agency in order to request a security freeze, including the consumer 's name, address, date of birth, and a copy of a government-issued identification card. I provided all of the information required by law.

15 U.S.C. 1681c-1 ( c ) ( 2 ) : This section of the FCRA requires the credit reporting agency to place the security freeze within one business day after receiving the request, and to provide the consumer with a unique personal identification number ( PIN ) that can be used to temporarily lift or permanently remove the freeze.

15 U.S.C. 1681c-1 ( d ) : This section of the FCRA prohibits credit reporting agencies from charging consumers to place, temporarily lift, or permanently remove a security freeze.

15 U.S.C. 1681c-1 ( e ) : This section of the FCRA specifies the circumstances under which a credit reporting agency may temporarily lift a security freeze, such as when the consumer requests it, or when a person has applied for credit in the consumer 's name.

On XXXX XXXX XXXX, Clarity Services Inc., responded to my request and informed me that the company required me to submit a copy of my social security card in order to implement the freeze. This requirement is in violation of my rights under the FCRA, as indicated above, as well as other relevant laws and regulations. It is not a necessity by law for Clarity Services Inc. to make this request for a security freeze.

According to the FCRA, 15 U.S.C. 1681b ( c ) ( 1 ) ( F ), a consumer reporting agency such as Clarity Services Inc. must have a permissible purpose for obtaining credit information, and demanding to obtain a consumer 's social security card/number without their consent would be a violation of this section. Demanding a copy of my social security card without my consent for the purpose of placing a security freeze on my credit information does not meet this requirement.

Additionally, the FCRA 15 U.S.C. 1681b ( c ) ( 2 ) requires a consumer reporting agency to obtain a consumer 's written consent before obtaining or using sensitive information like their social security number and demanding a copy of the social security card without obtaining consent would be a violation of this section. Clarity Services Inc. did not obtain my written consent before demanding a copy of my social security card.

Furthermore, FCRA 15 U.S.C. 1681b ( c ) ( 3 ) requires a consumer reporting agency to take reasonable steps to ensure the security and confidentiality of the information it collects, and demanding a copy of a social security card without sufficient security measures in place is a violation of this section. 

As per the Health Insurance Portability and Accountability Act ( HIPAA ) it is illegal for a non-covered entity to request a copy of a person 's social security card. It is not a requirement by law for me to provide a copy of my social security card in order to obtain a security freeze on my credit information. I have a right to obtain a security freeze on my credit information upon my request upon providing reasonable identification like a government-issued ID. 

Even though placing a security freeze on my credit report does not prevent fraud from occurring, it can make it more difficult for someone to open new accounts in my name. I also know that it does not affect my credit score or prevent me from getting my free credit report. However, the credit reporting agency must place the freeze within one business day after receiving the request, and must provide the consumer with a unique personal identification number ( PIN ) that can be used to temporarily lift or permanently remove the freeze. Clarity Services Inc. did not comply and has still not complied with these requirements of the law.

I am requesting that the Consumer Financial Protection Bureau investigate this matter and take appropriate action against Clarity Services Inc. to ensure that they are in compliance with the law and that my rights as a consumer are protected. 

Thank you for your attention to this matter. 

Sincerely, XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation