Think Twice Before Signing up for Equifax ‘free’ Credit Monitoring
Following the announcement of a “security incident” that affected 143 million customers on Thursday, Equifax is offering customers a year of free credit monitoring as an apology. Credit monitoring might seem like a good deal (free is free, isn’t it?), But if you were one of the clients hit by a security breach, you might think twice before signing up.
Equifax notes in fine print that by subscribing to the service, you agree not to sue for infringement. If your information is stolen, you could face a huge personal identity nightmare. Waiver of the right to sue within 12 months of free credit monitoring is probably not a good idea.
AGREEMENT TO RESOLVE ALL DISPUTES BY OBLIGATORY INDIVIDUAL ARBITRATION. PLEASE READ THIS SECTION CAREFULLY BECAUSE IT AFFECTS YOUR LEGAL RIGHTS BY REQUIRING ARBITRATION OF DISPUTES (EXCEPT BELOW) AND REFUSAL TO ACCEPT OR PARTICIPATE IN THE CLASS. ARBITRATION PROVIDES A FAST AND EFFICIENT DISPUTE RESOLUTION MECHANISM BUT YOU SHOULD KNOW THAT ALSO RESTRICTS YOUR RIGHTS TO DETECT AND APPEAL.
In fact, Equifax has already been filed with a class action lawsuit for infringement, so you also waive your right to participate in this and any other claims.
The company added a waiver clause to the arbitration clause on Friday, but it will take a little work on your part:
IF YOU DO NOT WANT TO CONTACT THE TERMS OF ARBITRATION, YOU HAVE THE RIGHT TO EXCLUDE YOURSELF. Waiver of the arbitration clause will not adversely affect your relationship with Equifax or the delivery of Equifax Products to you. To exclude yourself from arbitration, you must notify Equifax in writing within 30 days from the date you first accept this Agreement on the Site (for Products purchased from Equifax on the Site). If you purchased your Product outside of the Site, and thus this Agreement was sent to you by mail, email or otherwise delivered to you, you must notify Equifax in writing within 30 days from the date you receive this Agreement. To be effective, a timely written notice of disclaimer must be delivered to Equifax Consumer Services LLC, Attn .: Arbitration Opt-Out, PO Box 105496, Atlanta, GA 30348, and must include your name, address and Equifax user ID, as well a clear statement that you do not wish to resolve disputes with Equifax through arbitration. If you have previously notified Equifax that you wish to opt out of arbitration, you do not need to do so again. Any waiver request mailed after the waiver deadline or not meeting the other requirements above will be void and you must file your claim in arbitration or small claims court.
What’s the correct move? It depends on how much you trust Equifax. Registration requires you to provide even more information (six digits of your social network, not the usual four) and wait a while before you can access credit monitoring services. It’s not exactly the best deal.
If you miss it (or don’t even miss it), you can request a free copy of your credit report annually from all three major reporting agencies. And if you’ve been one of the people hit by a hack and don’t plan on making any purchases anytime soon, it might make sense to freeze your credit ahead of time until you figure out exactly how big the problem is.