Do Credit Card Service Bureaus Reduce Fraud?

A credit card service bureau is not in the business of reducing fraud committed by cardholders. This job is typically accomplished by the credit card companies themselves. The credit card companies have fraud detection services in place to protect consumers against theft or fraudulent transactions that take place against their credit card.

What is a Credit Bureau?

A credit card service bureau is commonly referred to as a credit bureau. The purpose of a credit bureau is to compile information concerning consumer debt. This information forms the basis of an individual’s credit score. The credit score is measured by their Fair-Isaacs Corporation or FICO score.

3 Major Credit Bureaus

There are 3 major credit bureaus in the United States. They are Equifax, Experian and TransUnion. These agencies report FICO scores to lenders and other users of consumer credit information. This reporting is done in accordance with the provisions of the Fair Credit Reporting Act. Of the duties and responsibilities of the credit bureaus, fraud reduction is not one of them.

Contacting Your Credit Provider

A consumer interested in reducing fraud as it pertains to their credit situation should contact their credit provider. An inquiry should be made as to the type of fraud prevention and reduction programs that they have. Generally, credit providers such as credit card companies will provide this information in writing on a credit application or an informational brochure.

 



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