Data Breach Sunday: LendingTree Customers Get An Identity Theft Letter
May 4, 2008
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If you are not familiar with LendingTree, it is a website where you request a quote for a loan and they will provide you with up to 4 loan offers from different vendors. Of course to do that, it is expected that LendingTree will share your information with its partner companies.
Well, according to a letter received by LendingTree customers, some former employees had a nice little side business going. From 2006 to 2008(!), employees have been providing unauthorized companies with access to customer information so that those companies can send loan offers directly.
LendingTree said that this information, which includes name, Social Security Numbers, income and employment info, wasn’t used for identity theft but just for loan marketing purposes. But how do they know?
Customers are understandably upset about the whole thing, but what makes them more upset is the company’s response to the identity theft risk:
In its letter, LendingTree includes a pamphlet called “Guide to Protecting Your Credit and Identity.” Consumers who obtain their credit report and see anything suspicious are told to “contact the credit bureau.”
“We suggest that you remain vigilant by reviewing account statements and monitoring your credit reports for the next 24 months,” the letter says.
The least the company could do is provide a year or two of credit monitoring or something like LifeLock, LoudSiren, or TrustedID. Asking clients to use up one of their “free” credit reports is a little weak.
Does this change your perspective on using vendors that “get offers” on your behalf?
UPDATE: Looks like the lawsuits have started. A Bronx man is suing LendingTree and is trying to get class action status. Also, LendingTree is suing the “unauthorized companies” mentioned above: Newport Lending Group, Sage Credit Company, and Home Loan Consultants.
Source: Red Tape Chronicles
(Note: this post contains affiliate links)
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Posted in Data Breach Sunday, Identity Theft
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May 6th, 2008 at 4:58 am
It’s not just Lending Tree, Mortgage professionals are getting caught left and right selling private information…
I don’t use brokers or online sources for anytype of loan/credit evaluation. When I purchases my first home 7 years ago I had a ridiculous experience with a mortgage broker. Ever since then I walk into my local banks, they know me by name, I sit down and discuss my financial business face to face.
With that said there is still the reality that my identity can be stolen– it seems to be a ubiquitous subject these days.
I am shopping for a “theft protection kit” for the entire family. So I am doing my homework, and have been scouring the internet for the right solution. It was easy to eliminate a few and now I am down to the 3- top choices. But lol I guess I am going to revisit the check off sheet since there is a “new and improved” trustedid.
see …and it looks like it extends to my entire family. Which was one of my main concerns.
Stay Safe —
Daniel
May 15th, 2008 at 6:51 pm
Hi Daniel,
You’re totally right about mortgage companies selling info or just throwing it away when they go under. I am going to do a post on that very topic.
My first mortgage I used a broker and the experience was OK, but any time after that when I needed anything non-trivial from my bank it was a nightmare because my account was in some “broker relations” department who knows where.
My most recent home purchase, I did what you did and just walked into my local branch. Much better! Of course, I did call a broker first for rate negotiation purposes.
Good luck on finding the kit. Let us know which one you go with and why.