Posted on 03/28/2008 6:49:51 AM PDT by APRPEH
PHOENIX, March 28 /PRNewswire/ -- Today an Arizona consumer filed a proposed class-action lawsuit against LifeLock, a heavily promoted company that claims to protect consumers against identity theft. The lawsuit alleges that the three-year-old company defrauds customers by offering services it cannot legally perform, and by touting a $1 million guarantee that the suit alleges is wildly misleading.
Filed in United States District Court for the District of Arizona, the suit seeks to recover money consumers paid to LifeLock.
LifeLock, headquartered in Tempe, Arizona, uses aggressive advertising to entice consumers to sign up for its $10-a-month service which it describes as "proactive identity theft protection, offer[ing] a proven solution that prevents your identity from being stolen before it happens."
Its advertisements prominently feature a supposed $1 million guarantee. In one commercial, Todd Davis, a founder and CEO of LifeLock, announces to a crowd of individuals, "If anything happens for any reason while you're a client of LifeLock, we will cover all losses and all expenses up to one million dollars." On its Web site, LifeLock makes similar statements, claiming that it will "do whatever it takes" to restore a member's good name.
According to the complaint, the fine print says otherwise: LifeLock will not pay any losses directly to the consumer and does not cover consequential or incidental damages to identity theft. The guarantee is limited to fixing failures or defects in the LifeLock services and paying other professionals to attempt to restore losses.
"The fine print in this $1 million guarantee is so limiting, we think it is almost worthless," said Rob Carey, partner in the law firm Hagens Berman Sobol Shapiro, who is representing consumers. "LifeLock buries the truth beneath a pile of inconsistencies and disclaimers so deep that we believe the intent is to mislead consumers so they don't make claims."
LifeLock also misleads consumers about the protections it can provide, according to the complaint. LifeLock's advertising campaign features Davis displaying his social security number, saying, "I'm here to prove just how safe your identity can be with LifeLock - that's my real social security number." Davis claims he can give out his personal information because of his complete confidence in his company's protection.
"What LifeLock doesn't tell you is that in 2006, Davis was a victim of identity theft when a criminal used his social security number to fraudulently obtain a $500 payday loan," said Carey.
According to the suit, LifeLock's "proven solution" consists of illegally placing and renewing fraud alerts under consumers' names with credit bureaus. Under the federal Fair Credit Reporting Act, however, corporations such as LifeLock are not allowed to place fraud alerts on a consumers' behalf - in fact, according to the complaint, the law was written so as to specifically bar credit-repair companies from improperly using fraud alerts.
Moreover, the lawsuit alleges, LifeLock overstates the protection consumers get from fraud alerts.
According to Carey, a fraud alert tells creditors that the consumer does not authorize new credit accounts, new credit cards or credit-limit increases, but, contrary to LifeLock's claims, a fraud alert does not require a creditor to contact the consumer before extending credit, according to the complaint.
They also do not protect against many types of identity theft - as the theft of Davis' identity proves, notes Carey.
"Identity theft is a rampant problem in the United States, and companies that overstate what their services can or will do are as much a part of the problem as the thieves," said Leonard Aragon, another attorney representing the consumers.
According to the complaint, one of LifeLock's founders, Robert Maynard, has been investigated and prosecuted by the Federal Trade Commission and the State of Arizona for fraud in connection with his previous "credit repair" enterprise.
As a result of that investigation, Maynard was banned for life by the FTC from participating in or promoting any credit repair business. When news accounts surfaced recently about Maynard's past, including allegations that he stole his father's identity, Maynard resigned from the company but continued to work as a consultant, according to the complaint.
The suit's named plaintiff, Byrl Lane, bought LifeLock in October 2007, after his car was stolen, and was falsely informed that creditors would have to contact him and that he would be protected against any theft involving his personal data. He was not informed that LifeLock is not authorized to secure fraud alerts on his behalf nor of the stringent limits of the $1 million guarantee.
If approved by the court as a class action, Lane would represent other similarly situated LifeLock customers.
The suit claims LifeLock violated Arizona's Consumer Fraud Act and the Arizona Insurance Code, and seeks to have all members' fees refunded due to the illegality of the contract and LifeLock's misrepresentations about its service.
About Hagens Berman Sobol Shapiro
Hagens Berman Sobol Shapiro is based in Seattle with offices in Chicago, Cambridge, Los Angeles, Phoenix and San Francisco. Since 1993, it has developed a nationally recognized practice in class-action and complex litigation. Among recent successes, HBSS has negotiated a $300 million settlement in the DRAM memory antitrust litigation, one of the largest anti- trust settlements in history; a $340 million recovery on behalf of Enron employees; a $150 million settlement involving charges of illegally inflated charges for the drug Lupron, and served as co-counsel on the Visa/Mastercard litigation which resulted in a $3 billion settlement, the largest anti-trust settlement to date. HBSS served as counsel in a $850 million Washington Public Power Supply settlement and represented Washington and 12 other states against the tobacco industry that resulted in the largest settlement in history. For a complete listing of HBSS cases, visit www.hbsslaw.com . CONTACTS: Rob Carey (602) 840-5900 Hagens Berman Sobol Shapiro Rob@hbsslaw.com Mark Firmani (206) 443-9357 Firmani + Associates Inc. Mark@firmani.com
First sued by Experian and now a class action suit.
"LifeLock buries the truth beneath a pile of inconsistencies and disclaimers so deep that we believe the intent is to mislead consumers so they don't make claims."
Most of the services LifeLock performs can be done by consumers on their own.
One of Rush’s sponsors.
Wow! I wonder how Rush Limbaugh will feel about this? A long while back Pat Boone got sued because he advertised a defective product - even though he was hired to do so and had no interest in the company .....
Now will someone go after those “free credit report dot com” people? Stop the earworm!!!
“Now will someone go after those “free credit report dot com” people? Stop the earworm!!!”
If for no other reason than to stop that annoying white guy trying to rap jingle.
Why is there a need for Lifelock? Could it be McCains Illegals?
I don't know that those agencies would charge, but I bet it doesn't require a continuous monthly charge?
I'll have to investigate. ...or does someone already know?
Now instead of looking fly and rolling fat, my posse’s getting laughed at...
I still don’t understand the concept of “identity theft”.
Someone pretends to be me, and you give him some money? Sounds like you got suckered, buddy. What exactly do you expect me to do about it? Pay for your mistake?
The folly is in not requiring proof of identity. (Do numbers and letters really prove I’m so-and-so?) The onus of this foolishness should be on the lender. Who came up with the lame-brained idea that it should land at my feet?!
I gave my bank some money for safe-keeping. If they can’t even verify the identity of someone making a withdrawal, clearly my money is safer in a coffee can buried in my backyard.
My first thought. If he doesn't say something...he'll lose a knotch with me.
I can’t believe I’m saying this, but as far as earworms go, that’s actually one of the wittier ones.
“lookin’ fly an’ rollin’ PHAT” this is why white guys shouldn’t try to rap. Yeah, we should bury these guys alongside the cavemen...IMHO.
Knotch? Did you knot mean notch? You must have had a long knight.
Isn’t the jingle more a takeoff on “rockabilly” than rap?
SD ping, we were just talking about this company.
RS
“The fine print in this $1 million guarantee is so limiting, we think it is almost worthless,”
So, they are suing because they didn’t read the fine print? Just the so called mortgage meltdown today. People should be relieved of their mortgage oblibations because they are too stupid to read the fine print. Let them suffer.
Those commercials are painful to watch.
It would be less painful to watch Helen Thomas getting a leg wax.
Wait a minute - let me rethink that one...
They say a man should always dress, for the job he wants.
So why am I dressed up like a pirate in this restaurant.
It's all because some hacker stole my identity
Now I'm working in this restaurant serving chowder and iced tea
Should'a gone to FreeCreditReport dot com (yeehah!)
Then this would not have hit me, like an atom bomb
They'll monitor your credit and send you free email alerts
So you don't end up working here for tourists in T-shirts. :-)
I hope they do sue free credit reports.com. How can they say the credit report is free without saying that you have to pay them for their “triple advantage program” which costs money every single month? They do mention triple advantage in a very quick and low sound volume at the end of their commercial, but most people will not catch the meaning.
I just have a general policy that anything advertised on talk radio isn’t something I want to look at buying. I doubt that Rush can say anything without opening himself and his syndicators to legal repercussions. I more than ignore celebrity endorsements. It works against my interest in the product.
From their homepage: Here's what we do:
First, we ask the credit bureaus to set free fraud alerts on your behalf.
You can place a fraud alert for free on your own.
Second, unless your circumstances change and you tell us not to, every 90 days or so we ask the credit bureaus to do it again.
Again - you can do this yourself.
Third, we request that your name be removed from pre-approved credit card and junk mail lists
This can be done through the DMA (Direct Martketing Association) on your own and free.
Fourth, we order your free credit reports on your behalf
You can do this on your own at annualcreditreport.com for (you guessed it... free)
Fifth, hassling with lost or stolen wallets is no longer a problem with WalletLock™.
10 bucks a month for this?? Don't think so. Keep credit card numbers in your cell phone or have them written down somewhere else.
Ooppps... meant to say "Keep your credit card companies PHONE Numbers in your cell or written down somewhere else...
The thief was a real genius and cashed them at my bank.
When I returned from vacation and got my bank statement, I reported it to the bank and the police.
In a few hours, he was in custody, the bank covered my funds {my signature was forged and badly} and he was on video.
The perp was about 6' 4", 300 lb. and a brother with a long rap sheet.
He called my home and threatened me and my family if I pressed charges and testified.
I called the police and it turns out he called me from his home phone {told you he was a genius}.
The detective, a black guy, had been trying to put this guy away for years, but his grandmother kept getting him off. He told me this guy was bad news and would eventually kill someone.
The perp cut a deal and got off with probation {the detective was irate, but had no recourse}. About ten years later I bumped into the detective at the courthouse and he told me that the perp had been involved in an armed robbery and been killed in a shoot out.
I have no idea how much trouble he caused in those ten years but the countless judges that let him walk have no qualms {I'm sure}.
It didn't look correct when I typed it, lol. I figured someone would correct me, thanks.
It is someone obtaining credit as if they were you, having all the paperwork in your name, with your social, and other other information and then utilizing that credit to make purchases ranging from small to very large.
Not only that, they will operate as you in employment situations and then the IRS gets documents showing you earned $X working for a company and when you don't put that income on your tax return, the IRS comes after you.
And then all the fraudulent credit shows up on your credit report, and because there is no reason for them to pay the bills, your credit gets trashed with late payments, non payments, charge offs, etc...
Equifax Credit Report Control and a state law security freeze both block access to your Equifax credit report.
Equifax Credit Report Control exceptions are similar to the exceptions commonly found in state security freeze laws.
However, because states have enacted their own security freeze laws,the laws differ from state to state. The primary differences between Equifax Credit Report Control and security freeze under state law are the ease of online access and the availability of one low annual fee for services provided by Equifax Credit Report Control.
With Equifax Credit Report Control, you can easily lock and unlock your Equifax credit report online whenever you wish. Changes to lock, unlock, and request specific company access to your credit report are available at no additional charge, unlike under state laws where typically a fee is charged for each transaction (unless you are an identity theft victim). As an Equifax Credit Report Control member you enjoy these benefits:
* Ability to lock and unlock your Equifax credit report online quickly and easily
* Flexibility to temporarily unlock your Equifax credit report for all companies or for specific companies
* Email notification of changes made to the lock status of your Equifax credit report
* An online history of the changes you made to your lock status
* Knowledgeable Customer Care available 7 days a week
Yes, Rush got a piece of the Dumba$$ pie.
I thought the last line was:
So you don’t end up sellin’ fish to tourists in tee-shirts.
Kno problem! :-)
I wish the International Star Registry would die a painful death. They just prey on the stupidity of people.
Bank of America keeps sending me credit card “courtesy checks” in the mail at least once a month. Basically, they are checks that can be written against the balance on my credit card. I have tried to get them to stop sending them, but they don’t seem to get the fact that it is a security risk, especially since I live in a rural area where the mailbox is right on the road. They act like they are doing me some kind of favor by sending them to me. It is really frustrating and if they don’t stop, I am going to have to change banks and close my credit accounts with them.
This is true on a number of levels. I speak from experience on both sides of this issue, as I have a fraud alert on my bureau due to identity theft and I also currently work approving auto loans.
First, the fraud alert has to be noticed by the person reading the bureau report (it can be easily overlooked) and then they have to take the initiative to do something about it.
When I have applied for credit I am sometimes approved with no questions and other times the process has been halted until I received a call verifying that I was indeed applying for credit.
Well, I was going to ask to borrow your cell phone, but never mind now.
Arr!
It makes me cringe that so many people I otherwise respect are affiliated with the sleazy boiler-room operation known as Direct Buy.
Rush comes up with Operation Chaos, which is pissing off Democrats and making them very nervous, and one of their most powerful lobbies (trial lawyers) goes and sues one of the big advertisers supporting his show.
Coincidence?
Lifelock is essentially an insurance company, and lawyers love to sue insurance companies. Deep pockets, and since they can never completely guard against bad things happening, there is almost always disgruntled customers to use as clients no matter how well they do their job.
First, Experian et al are simply trying to steal Lifelock’s business, flat out simple and obvious.
Second, I understand EXACTLY what LifeLock does and can’t can’t do, and to me that seems worth the $120/year. But I have another service which provides unlimited reports, email alerts, FICO scores, and the rest which is more in line with my needs for the same annual amount.
Sure you can get all of this “for free”, so long as you consider your leisure time as “free”.
Speaking of Rush, is anyone else annoyed beyond belief when he works the tankless water heater promo into his caller conversations? What’s up with that?
Your probably right. I’ll listen to my earworm closer next time.;-)
“I wish the International Star Registry would die a painful death. They just prey on the stupidity of people.”
A girlfriend bought me one of those papers naming a star after me......... so I got that going for me.
“Why is there a need for Lifelock? Could it be McCains Illegals?”
Now don’t be talkin’ like that. They’re only here to do jobs Americans won’t do.
Can you share the name of your service?
It’s rapabilly.
I also live in a rural area where my mail box is far from the house. I have a PO box and everything involving bills or finance goes to the PO box. The blank checks on the credit statement get shredded.
No. They're suing for deceit in advertising, and I hope they win. It's about time some companies pay for the disjunction between their advertising and their exculpatory fine print.
Your Annual Credit Report doesn’t have your credit score on it, does it?
Stop in at the local bank and tell the manager what you want done. They can fix the problem.
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