Alert: For the New Year, Resolve to Check Yourself Out

During the coming year creditors, insurance companies, banks, employers, among others will likely run your name through databases containing a wealth of personal information. Errors ñ perhaps introduced by an identity thief or from file-mingling -- can trip you up when applying for a credit card or loan, job opportunities, a place to live, insurance, and much more. One resolution you should keep in 2006 is to check that the information in these databases is correct.

We recommend that at the very least, you should check yourself out in the following areas:

• Credit history
• Medical Information
• Bank account history
• Insurance claims
• Public records
• Search engines

Credit history. January is an ideal time to develop a habit of checking your credit report. The law allows you to order a free annual credit report from each of the three credit bureaus ñ Equifax, Experian, and TransUnion. Ordering one report every four months is a cheap and easy way to monitor your credit reports and detect signs of identity theft. Look for unfamiliar accounts or activity. Each credit bureau will have slightly different information so if you are considering making a major purchase, such as a car, house or school loan, it is a good idea to review all three reports at one time rather than every four months.

Your free credit report can be ordered online at www.annualcreditreport.com or by calling 877-322-8228. We recommend ordering it by phone.

Medical Information Bureau. If you have applied for individual life, health, long-term care or disability insurance in the last seven years, information about any major medical condition may be in a database maintained by the Medical Information Bureau (MIB). About 20 percent of individuals have an MIB report.

Insurance companies usually review your medical records when you apply for insurance as an individual (but not when part of a group insurance plan). They get your consent to obtain your medical files from your healthcare providers. If the records indicate that you have a significant health condition, they report it

to the MIB. If an individual has high blood pressure, for example, the MIB report would include a 3-digit code for that condition. By law, the report does not include information that is older than seven years.

If you are going to apply for any type of health or life insurance as an individual, we recommend that you first check out your MIB report (and not everyone has such a report). You will want to make sure that any data about you is accurate and not out of date.

Visit MIB's website to learn how to order your free report, www.mib.com/html/request_your_record.html. Or call (866) 692-6901.

Please be aware that your MIB report is not a compilation of your medical records. You have a legal right to your medical records under federal HIPAA law. To obtain your medical records contact your individual health care provider(s) directly. There will likely be a charge for copies of your records.

Bank account history. Your history regarding bank accounts may be in the ChexSystems database. ChexSystems is a nationwide specialty consumer reporting agency that collects and maintains information from member financial institutions such as banks and credit unions. If a bank closes your checking account because of, say, insufficient funds, it will make a report to ChexSystems that other banks will check when you apply for new accounts. A negative report from ChexSystems will prevent you from opening a checking account at another bank.

To order your ChexSystems report call (800) 428-9623 or visit their website at www.consumerdebit.com.

Insurance claims history. The insurance industry uses databases containing information about past claims or inquiries when deciding whether to insure you and at what rate. The major claims clearinghouse is CLUE, a product of ChoicePoint. Tied to your identifying information is a record of auto or homeowner property loss claims you have submitted to an insurance company for the past five years, including the date of the loss, type of loss claimed, and the amount paid by the insurance company.

The CLUE database may also include notations of property ìdamageî ñ even if the insurance company didn't pay out a cent. Any hint of water damage to a property, for example, could trigger a negative mark on the property's CLUE report. Well-intentioned consumers who call an insurer to merely inquire about coverage for water damage have been shocked to have their insurance cancelled. Your chance to get new insurance at a good rate could be affected.

If you are shopping for new insurance it is critical that you order a copy of your CLUE report and make sure it's accurate. The claims report for your homeowner's insurance is separate from the claims report for your auto insurance.

Examine the CLUE report carefully for errors and incomplete entries. Aggressively dispute inaccuracies in writing.

Insurance decisions are also based on your credit history. This is another good reason to take advantage of your free credit reports (see above). The opportunity to clear up your credit report, before you are denied insurance is not one to be missed.

For information on how to get your free CLUE report from ChoicePoint, see www.choicetrust.com or call (866) 312-8076.

Public records. If you are starting the New Year with a job search, checking out your public records file may be vital to your success. Most employers these days use background check companies to screen potential employees. Although the background check process varies, most screeners compile their reports from public records including criminal history files. Inaccurate information concerning arrests, convictions, expungements, among others, can frustrate a job search.

Take advantage of the free public records search offered by ChoicePoint, a major provider of background check data. Visit www.choicetrust.com and click on ìfree public records searchî for more information.

Search engines. Finally, in 2006 you can be sure that at least one friend, romantic interest or colleague's curiosity will drive them to enter your name into a search engine. To avoid any embarrassment run your name through the major search engines -- Google, Yahoo, and MSN -- and see what comes up. You might be surprised.

Resources

For more opt-out opportunities, read our Fact Sheet 1(a) on privacy basics: www.privacyrights.org/fs/fs1a-basics.htm

More information on medical privacy is available in Fact Sheet 8: How Private is My Medical Information? www.privacyrights.org/fs/fs8-med.htm

Read about HIPAA in our Fact Sheet 8a: HIPPA Basics: www.privacyrights.org/fs/fs8a-hipaa.htm

More information on specialty reports is available in Fact Sheet 6b: The ìOtherî Consumer Reports: What You Should Know about ìSpecialtyî Reports: www.privacyrights.org/fs/fs6b-SpecReports.htm

More information on CLUE Reports is available in Fact Sheet 26: Clue and You: How Insurers Size You Up: www.privacyrights.org/fs/fs26-CLUE.htm

Happy New Year!

Copyright © 2006. Privacy Rights Clearinghouse/UCAN. This copyrighted document may be copied and distributed for nonprofit, educational purposes only. For distribution, see our copyright and reprint guidelines. The text of this document may not be altered without express authorization of the Privacy Rights Clearinghouse. This document should be used as an information source and not as legal advice. PRC documents contain information about federal laws as well as some California-specific information. Laws in other states may vary. Overall, our information is applicable to consumers nationwide.