Credit monitoring best bet in Equifax settlement

Michelle Singletary chose to get credit monitoring on your own, you were offered “up to” $125. However, not long after announcing the cash option, the FTC had to walk it back because of the stampede of people looking to receive the benefit and the limited pool of money — just $31 million — that had been set aside.

The push is now to get people to sign up instead for the free credit monitoring being offered by Equifax. This option comes with four years of credit monitoring at Equifax and the two other major credit bureaus, Transunion and Experian. Consumers can request an additional six years of free monitoring of just their Equifax credit report.

Considering that most people who still make a claim will get substantially less than $125, you may as well take the credit monitoring instead.

Paying for the threebureau monitoring would cost you about $30 a month. Over four years, that would come to $1,440.

Still, even though it’s free, a lot of people are not sure the monitoring offer is worth it. Here are some questions I’ve received from concerned readers and my responses.

Q: Why would I sign up for credit monitoring with a company that had a significant breach in their security?

A: Under the settlement, Equifax won’t be providing the three-bureau monitoring for the first four years. Instead, the company will pay its competitor, Experian, to provide the service. Equifax will handle the additional six years of monitoring, but the company has agreed to not upsell or directly market or advertise its fee-based products or services during that time.

Q: What assurances do I have that credit monitoring wouldn’t subject me to further vulnerability to fraud and theft?

A: Credit monitoring does not prevent fraud or identity theft. What it does is send you alerts about activity that could be fraudulent. Because we live in a time when lenders can grant credit in a matter of minutes, you might get a notification only after a card has been issued and used. But the sooner you’re informed about some nefarious action, the quicker you can move to close a fraudulent account in your name.

Q: My credit card company provides monitoring. So I went for the $125, totally missing the “up to” piece of the deal. Can I change my mind?

A: You can still switch to free credit monitoring. Once the court approves the Equifax settlement, you’ll be contacted. At that time, you can tell the settlement administrator you’ve changed your preference.

Readers can write to Michelle Singletary c/o The Washington Post, 1301 K St., N.W., Washington, D.C. 20071. Her email address is michelle.singletary@ washpost.com.