HERE IS HOW WE DEBUNK THE MYTH OF "is it legal?"
“I would not use a CPN especially if you have questionable credit,” said John C. Heath, a credit expert and consumer attorney for Lexington Law. “It may be seen as an attempt to deceive a creditor about your creditworthiness (even if that is not your intention)."
Correct answer: What Lexington Law is not telling you is that it is completely legal to use a CPN to conduct your personal financial business…obtaining basic consumer type credit. If you do not pay these bills that’s when you can get yourself in a heap of trouble if they prove that your intention was to purposely elude creditors and evade paying your committed debts.
"CPN sellers also often tell consumers they can apply for and receive credit from lenders and that their credit transactions will be reported to the three major credit reporting agencies — Experian, TransUnion and Equifax."
Correct answer: When we register the CPN number and your personal information with all three bureaus this is EXACTLY what occurs…No myth!
“Equifax asks for Social Security numbers and not alternatives,” said Nancy Bistritz, director of public relations and communications for the credit reporting agency.
TransUnion sent us a similar statement….
“TransUnion uses Social Security Numbers to identify consumer data for credit reports,” said David Blumberg, public relations director for TransUnion. “This approach is the standard for our industry because it supports the most accurate matching.”
Correct answer: The five agencies that require you to give them your SSN do not include the private sector credit bureaus. This is the premise as to why the number is completely 100% legal for use to conduct your personal financial business without exposing your sensitive information to these bureaus that are not required on ALL levels to access it. The Equifax breach is a prime example why EVERYBODY should possess a CPN number!
"If these numbers are such scams then why are consumers in danger of prosecution when countless companies are clearly marketing and selling them without recourse. Seems that if the CPN is in fact illegal then some accountability lies with the agencies that issue them......additionally, I've known about the CPN for years now and have seen several individuals "start over" with them and how are lines of credit being offered and approved if reporting agencies don't except or recognize them?"
Correct answer: Because they are legal to have and use as long as you pay all of your bills responsibly. They just try to discourage the purchasing and use of them through manipulative ads and vague interpretation of the law betting that most consumers are dummies!
"Why does the Social Security Administration offer them if you can't use it for anything legitimate? Doesn't make sense."
Correct answer: They are issued by the SSA to all immigrants when they come over to work. They tell you its not for work and its not a social security number. Then what is it? It is a CPN used for personal financial business!
Companies offering credit privacy numbers boast two big selling points. Nonetheless, despite these supposed pros of getting a CPN, Credit Privacy Numbers end up still being a hindrance when it comes to getting a business loan.
Correct answer: You can only use it to obtain credit and financing personally and then use the personal funds to accellerate your business.
- It protects your Social Security number.
People who are worried about identity theft and dislike the idea of sharing their Social Security number with anyone might get a CPN thinking they can use it as identification instead of their SSN.
In reality, however, if a lender asks for your SSN, they aren’t going to be satisfied with your credit privacy number. Think about it: You’re asking a bank to lend you tens or hundreds of thousands of dollars, trusting that you will pay it back, but you don’t trust them enough to share your SSN?
Correct answer: This is a weak response…A CPN does protect your SSN! It is a firewall!
- It can help you clean up your credit history.
CPNs are often promoted as part of a plan to improve your credit. When you do an online search for “credit privacy number,” lots of credit repair programs pop up. By using the CPN, these companies claim, you can apply for credit cards, lines of credit, or loans, and the companies involved will never find out that you have bad credit.
Correct answer: This is true in most cases…and these companies are not priveledged enough to have entitlement to your SSN credit.
However, it’s pretty obvious rather than improving your credit history, the credit privacy number is intended to hide it. And common sense will tell you that as long as the CPN is connected with you—your name, address, and other identifying information—it’s a simple matter for credit sources to uncover your credit score, no matter which ID number you use.
If anything, using a credit privacy number will make them more suspicious of your creditworthiness. And though it’s a difficult reality to face, that’s why you should focus on fixing your score instead.
Correct response: A CPN is the first step to fixing your credit past. It allows you to stop using your SSN for credit and allows you to continue forward. Only then can you stop and fix your SSN credit. Down the road you should bring both of the files together to report together.
"NEW LAW STOPS CREDIT PROFILE NUMBERS- Superior Tradelines"
Correct answer: There is no new law and they state that...just interested in talking about CPN numbers to increase Google rankings...are not in the CPN business and do not report tradelines to CPNs. That is why they are full of reckless irresponsible banter. They have no knowledge of them and they know by talking about CPNs it will increase their Google rankings.
"What Is A CPN? Fraud Just Waiting to Happen- Wallethub"
Correct answer: Only if you take the money that you obtained by using the CPN number and don’t repay it. They will say that you intentionally misled creditors and that is fraud! They have no knowledge of them and they know by talking about CPNs it will increase their Google rankings.
"Your One-Way Ticket to Jail, the Credit Privacy Number- Creditsesame"
Correct answer: Only if you take the money that you obtained by using the CPN number and don’t repay it. They will say that you intentionally misled creditors and that is fraud! They have no knowledge of them and they know by talking about CPNs it will increase their Google rankings.
"What Is a Credit Privacy Number? Nerdwallet"
A credit privacy number, or CPN, is a nine-digit ID that can be used in lieu of a Social Security number for credit reporting and other financial purposes, like applying for a loan. Also called a credit profile number, a CPN is primarily used for tracking credit history or applying for loans. You’ve probably heard of CPNs in the context of credit repair: A company will promise to issue you a CPN that will make it easier to qualify for new credit or get rid of bad debts. But be careful: Sometimes, those companies are selling a service that’s useless or even outright illegal.
So why use a CPN instead of an SSN, anyway?
Like an SSN, each person can only have one CPN. It’s used as a unique identifier for your financial transactions and lets lenders and credit reporting agencies keep an eye on your borrowing history. However, a CPN can help you keep your finances safe and hidden from the public eye. For that reason, it’s popular among elected officials, celebrities and people in witness protection programs. As the name implies, it’s mostly used by people who need a little extra privacy.
A CPN isn’t always a substitute for an SSN, though: You can’t use it for documents submitted to the IRS or an employer, registering a vehicle or applying for a government loan, for instance. If you have a CPN, it’s on you to know when you can and can’t use it
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