I have always been a big fan of identity theft protection services. This, despite the fact that there are a lot of scams and shady services out there. It’s always good to have a protection program to cover your risks, the only real question is which one to use. There are a lot of programs available that do different things to help you out if you’re a victim of identity theft. When it comes to evaluating identity theft protection programs, understanding what these programs do, and more importantly but they don’t do, is the best advice that I can give you.
A credit monitoring program is kind of like a smoke detector. It only tells you that you have a problem after the fact, and it doesn’t do anything about the problem itself. It’s a good place to start, because a lot of identity theft will show up on your credit card or bank statement. Credit monitoring programs will let you know if something has changed with your credit, or if somebody has gotten a new card in your name… Most of the time. However, if an identity thief gets a new credit card using your Social Security number and a different name, you probably won’t find out about it. At least not until you’re turned down for a loan. This has to do with how credit monitoring bureaus are set up.
A reimbursement program is probably the second most common form of identity theft protection. Most often this is attached to your homeowner’s insurance, and your insurance agent used it as a selling point, telling you that it would also protect your identity as well as your home. This isn’t exactly true. A reimbursement program will pay you back for money that you take out of your pocket if you’re a victim of identity theft, but only under certain circumstances, and there are big strings attached. The biggest catch is that if you have to use it, your premiums will probably go up. Another problem with a reimbursement program is that you can end up paying taxes for using it. And of course the fact that you have to pull your money out of your pocket in the first place doesn’t really make it look very helpful.
An identity theft resolution program has become a very popular program in the past couple of years. These programs will give you assistance if you become a victim by talking you through fixing the problem. These are really great if you're a hands on kind of person, because you get to do the work yourself so you know it’s done right. Plus you get the satisfaction of knowing you took care of your problem. However a resolution program doesn’t really do anything for you that you can’t do for yourself with a little bit of searching on Google. It might be worth a few dollars each month to make sure you have someone to hold your hand while you deal with your problem, but in your Guides opinion, there are better ways to spend your money.
An identity theft restoration program is by far the best program money can buy. A restoration program takes care of the problem for you, much like insurance will take care of a house fire or wrecked vehicle. These programs are naturally more expensive, and they are hard to find. Naturally, these programs are only as good as the people doing the work for you. They may have a two week crash course for their people, or you may be dealing with a leader in the industry. You never know until you ask. A true restoration program will want you to sign a limited power of attorney so that they can work for you.
But a power of attorney does not necessarily mean you’re working with a restoration company. Lifelock got in trouble for this because they use a power of attorney to do nothing more than place fraud alerts on their customers’ credit records. The FTC made them change this practice, but the point is you should know what the company is actually going to do with the authorization you give them. It’s also important to know that companies may say they’re doing one thing, but actually doing another. I have seen many companies say they are a restoration program when all they’re actually doing is walking you through what you must do, a resolution program by my definition. Make sure you know how much work they are going to do for you before you give them your money.
It’s also important to factor in the legal aspect, because if you have an identity theft, you’re almost guaranteed to have legal problems as well. Many identity theft programs specifically exclude legal help. A few say you can have legal help but the place severe limitations on what kind of legal help you can get, or that they will help you pay for. The program your Guide uses actually has a prepaid legal program attached to the identity theft program which works hand in hand with top rated attorneys to provide complete protection in the event of an identity theft. A nice bonus is that the legal program helps with things besides identity theft, although this is probably one of the most expensive options. Still, with everything I’ve seen in this industry, it is the best peace of mind I’ve been able to find.
Don’t be afraid to ask pointed questions when you are considering an identity theft protection program. Ask them specifically what it does. Ask them about the exclusions, they are required by law to tell you. I do recommend doing research online, but keep in mind that every side I have seen so far which claims to evaluate identity theft protection programs gets a kick back when you enroll in one through their site. They don’t really care which one you choose, because they make their money from all of them. As you might expect, this means their evaluations of the various programs are usually cast in the best light possible.
Of course, you can feel free to e-mail your Guide to ask specific questions. That fits in with my job description, and all my advice is free.
