MarketingBeyond

Credit Report Marketing: The Tyranny of Experian, Trans Union & Equifax

 Have you purchased an auto recently? Applied for a credit card? How about a new job? Started a new business? Been lucky enough to re-finance a mortgage or line-of-credit? If you have done any of these, then your credit file information was released by Equifax, Experian or Trans Union, the three largest credit reporting agencies in the country. These three credit reporting agencies hold vast amounts of personal financial information about each of us, and despite FTC and other government regulation, these three companies control your financial future.

Most Americans don't think very much about the potentially damaging financial information in their credit files until something bad happens. As many Americans have experienced, I was a victim of identity theft several years ago. Someone got hold of enough personal information through CitiBank to change my address and charge about $3,000 on my card before I discovered the theft. 

Believe me, it's an experience no one welcomes. You spend countless hours on the phone and filling out paperwork to prove you are you. After the case was cleaned up, I put an eleven year freeze in my credit files to prevent anyone from obtaining credit without the creditor first calling me--a minor inconvenience for the pain and frustration of someone stealing your identity.

I had another recent experience with the credit agencies. Because of two minor errors in my Equifax file--Toyota Leasing failing to indicate they offered me a new auto lease and PayPal/GE Money Bank reporting a $5 unpaid credit card balance, Chase Bank refused to issue a business credit card to me. It only took a five minute phone call to Chase to explain the matter. Meanwhile, the information is still in my credit reports despite emailing, calling and writing all three companies.

Consumer complaints about their inability to contact the credit agencies is growing. Searching Google reveals the following:

Trans Union Complaints = 387,000
Experian Complaints =     412,000
Equifax Complaints =       295,000
Total                              1,094,000

Communicating with the credit agencies is the top complaint. See Experian. The recently settled class action lawsuit against TransUnion is also well-reported.

The incestuous marketing of credit files to creditors, combined with the credit agencies' hard-selling of their (our) financial information to consumers is profit-making at its worst. When I was on the phone with an Experian rep, after receiving my credit file, the rep insisted I purchase one of their credit filing services. The report services, starting at $14.95 per month, claim to monitor unusual activity in subscribers' credit reports among the three bureaus, and email subscribers if "suspicious" activity occurs. Like life insurance agents, Experian markets the "peace of mind" you feel knowing that your credit file is watched.

Another service, described by the Experian rep, prevents access to your credit file without your permission. Da? You want me to pay your company to freeze and un-freeze my credit information, like a water spigot, and charge me for it? That's MY credit information you're marketing--not only to creditors but to consumers. Is this, indeed, double-dipping?

The tyranny of it all is we KNOW our financial affairs are monitored. We ARE being watched. So Experian, Equifax and TransUnion feed off the fears of all Americans,  because our financial lives are dependent on a monopoly of three companies who hold the cards. They make millions selling the same information to creditors as to consumers.

A quote from Don Robert, Chief Executive Officer of Experian about the company's substantial profit increase reported last March:

“This has been a challenging year in many ways. The major disruption that took place in the financial services sector was unprecedented, but we delivered good profit and cash performances. Experian is a strong business, performing well in difficult markets. While it is still too early to call a turn in the US and the UK financial services markets, and US Credit Services continues to soften, we have taken the necessary steps to reduce costs and protect margins and we expect to continue to deliver strong performances in Experian’s other regions and key business lines. Although we face strong comparables in the first quarter of this year, when organic revenue may be flat to slightly down, we remain confident on the outlook.”

And so it goes...I spoke with a Federal Trade Commission rep, who claimed that Experian is the hardest credit reporting company to reach. If you experience difficulties with any of the three companies, file a complaint with the FTC. You may also contact the FTC by phone.

Murdoch & Wall Street Journal Announce "Wall Street Lite--The 30 Minute Read"

Press Release

April 23, 2008

Contact: Whoever Answers the Phone

Media Mogul Rupert Murdoch today announced Wall Street Lite--The 30 Minute Read, a new version of the Wall Street Journal catering to newspaper readers seeking lively information and positive content to start their day.

According to Murdoch: "News Corporation's top management believes newspaper readers today want quick summaries of world, national and financial information--not long dissertations. Wall Street Lite (WSL) is the answer. I know we've been criticized for destroying print journalism, but just like Yahoo and Microsoft, it's time to 'bite the bullet' and make the hard decisions."

Marcus Brauchli, who recently resigned as the Journal's managing editor to accept a News Corp. consulting position, commented: "Our strategy is to morph WSJ into WSL quickly over the next few months, raising readership--especially among younger readers--by 25%."

Publisher Robert Thompson outlined specific WSL changes in the paper's "look and feel":

• New Masthead: "Wall Street Lite: The 30 Minute Read"
  
• Section and Column Title Changes and Add-Ons:
  
  
  
  • "Market Place" to "Market Space" to attract MySpace members who work on Wall Street
  • "Personal Journal" becomes "Let's Get Personal," providing financial, dining and dating advice
  • Front section's "What's New" changes to "What's Hot!," a quick review of positive events around the world, the nation and in the financial markets
  • A new column on page 2 tentatively called "Yada Yada." Thompson remarked: "We think there's room in WSL for a bit of trivia and light reading to start the day. 'Yada Yada' is the new home for unusual--even absurb--content. Maybe some New Yorker cartoons. We think it should be a winner."
  • "Money and Investing" morphs to "How to Make Money!"
  • An expanded reader forum called "Let's Chat." Thompson said the idea came from Mr. Brauchli as one of his first consulting recommendations. Readers can post online or send  text messages to WSL. Brauchli refused to comment.
  • Six columns are reduced to four increasing white space for video content.
• Other Changes:
  
  
  • "YouPod," a la David Pogue of the New York Times. Murdoch remarked: "Podcasting is growing fast as newspaper readership declines. Since Pogue cut back his column podcasts, we think 'YouPod,' covering technology and other topics in a humorous vein, will generate a lot of social buzz."
    
  • More Positive Headlines. Thompson feels newspapers are downers and WSL should put a "positive spin" in all articles. He provided a few examples:
    
    
    • "Dollar Hits New Low in Euros" to "Dollar readjusts its Value to Euros"
    • "Ford Announces Job Cuts" to "Ford Re-Positions Its Workforce for Greater Profitability"
    • "U.K. Home Prices Post Anemic Growth" to "U.K. Home Prices Rise 10% Since 2002"
    • "Wyeth's Profits Fall 4.6%" to "Wyeth Management Positive About Future Growth"
    • "Asia Shares Drop Across the Board" to "Asia Stock Market Exploring New Opportunities for Gain"
  • Story and Word Length. Thompson said: "I've just finished reviewing page-by-page the last three months of the Journal and we need to get back to basic English." Thompson proposed the following:
    
    
    • All front page stories end on the front page
    • Sentences limited to 12 or fewer words with no more than three syllables in each word
    • Adding "cool," "dude," and "awesome" to relevant articles. "Despite what the Social Networking Foundation says, we need to write like people talk these days...oh, and drop the 'Mr. this' and 'Ms. that.'"
  • Pictures and Videos. Working with WSI Online, Thompson proposes color pictures attached to each story on page one and videos, as appropriate, hosted on WSI Online. "I believe," Thompson said, "that 'Yada Yada,' in particular, is a great column for video content. Let's do it."

"To summarize," said Murdoch, "we're not going to destroy the Journal. We're reinventing it for a Web 2.0 world."

Jeff Walker, W. Clement Stone & The Law of Universal Abundance

Recently, I came across Jeff Walker, the "Product Launch Strategy" entrepreneur. Most people who seek home-based businesses, more satisfying lifestyles and unlimited wealth have considered online marketing businesses--usually offers from individuals with get rich quick schemes. Some are realistic and promoted by people of high integrity. Many are not.

Jeff Walker is the first visionary I've encountered whose marketing strategy aligns with the Law of Universal Abundance. Simply stated, the boomerang effect: what you get is what you give. The more I observe Jeff's willingness to share his thoughts and materials, the more I'm reminded that the Universe responds in strange and wonderful ways to those who give freely of themselves. These are individuals whose desire to help others and improve the world reach beyond monetary gain.

Throughout history, many individuals--some remembered, many forgotten--have realized this Law. Andrew Carnegie, who gave away millions creating public libraries, comes to mind. In the world of business, W. Clement Stone, who co-authored "Success Through a Positive Mental Attitude" and lived to age 100, is another. In fact,  I urge everyone to read the Wikiquote article on W. Clement Stone.

One quote:

"Be generous! Give to those whom you love; give to those who love you; give to the fortunate; give to the unfortunate; yes—give especially to those to whom you don’t want to give. Your most precious, valued possessions and your greatest powers are invisible and intangible. No one can take them. You, and you alone, can give them. You will receive abundance for your giving. The more you give—the more you will have!'"

Stone was also famous for his line: "Do it Now." Whatever you consider of value is worth doing today--not putting it off for another day. I must believe that if Stone were alive today, he would watch Jeff Walker with great interest.

Economy Hurting Marketing Campaigns? Thinking of Joining a 12-Step Program?

One of the biggest marketing challenges--whether pushing mobile devices or stuffed teddy bears--is getting noticed and not ignored. As a marketer, you write news releases, create product and pricing strategies, maybe advertise a bit. But you still have a gut feeling no one's listening. Not good for your social life. Worse if your boss is pushing for increased sales.

Read the rest on Mobile Telephone Marketing.

Like Consumer Electronics Manuals? "Please turn to page 385."

"If the preset speed is cancelled by pulling the control lever or by depressing the brake pedal, pushing the lever up in the '+RES' direction will restore the speed set prior to cancellation. However, once the vehicle falls below about 40 KM/hr (25 mpg), the preset speed will not be resumed." No, this is not a training class for automative technicians. This is a quote from my 2007 Toyota Prius Owner's Manual,  a mere 441 pages long. But wait, there's more. The car has GPS, a feature I love but...the "2007 Navigation System Owner's Manual" requires reading another 119 pages. Now, after absorbing a stern lesson in on-screen displays, steering wheel and dash controls, GPS and the stereo system, I'm through, eh? Oh, you positive thinkers out there. On the next-to-last page of the owner's manual in 24 point type is the following:

You should know as much about the quality and importance of proper maintenance of your new vehicle as the people who built it. The Toyota authorized Repair Manual tells you how to maintain your vehicle and enables you to correctly perform your own maintenance. I must have been mistaken when I purchased the $900 service plan. The contract actually requires me to do my own auto maintenance. Darn, I should have remembered, and to think I only wanted today to change the clock readout on the LCD display screen.

Conclusion: Toyota is in the publishing--not automative--industry. They just haven't told us.

"Home theatre systems," a name developed by smart marketers to increase the price of audio systems, Hi-DEF TV's and cable/satellite HD DVR's are next on my reading list. A while back, I bought a Denon S-301 "Home Theater System." Denon's manual is only 70 pages long in English, French and Spanish (wonder how they did that), and that doesn't include the list of preset codes for TV's, cable boxes and other assorted components in one's "home theater system." So there isn't an advantage learning another language to read the manual. Just eye-ball it.

The Denon manual, believe it or not, is similar to the Toyota navigation manual--multiple screens describing setting up and operating the system. Denon's remote has 63 buttons, which includes the small buttons on the back to control the display, RDS FM, subtitles, DVD angles (don't use that one much), "Tone/SDB" (need to google), "surround parameter" (hm...) and one unique button named "Random." I think all remotes should have one of those.

What about my Samsung LN-R328W TFT-LCD high definition TV? It's a mere 83 pages in English, skipping the French and Spanish again. Like Toyota and Denon, I believe that Samsung is clandestinely in a different industry--in Samsung's case, security. On page 68, you read: "If the TV is tuned to a restricted channel, the V-Chip will block it. The screen will go blank and the following message will appear: 'Excessive rating.' To resume normal viewing, tune to a different channel using the number buttons. Under certain conditions (depending on the rating of the local TV programs), the V-Chip might lock out all the channels. In this case, use the MENU button for an 'emergency escape.' Select the V-Chip on the Menu. Enter your PIN number, and press the ENTER button to temporarily disable the V-Chip Lock."  Now, don't forget that.

Thank goodness for the DirectTV Plus HD DVR User Guide--92 pages long, but a joy to read. Similar to the Tivo DVR manual I consulted previously, DirectTV's latest and greatest DVR manual is actually "user-friendly," a term that has since been replaced by "easy" on websites, press releases and in C.E.O. speeches. The remote's documentation, though missing Tivo's hip screen shots, is clearly written in a friendly style. The writer (s), one would think, actually used the DVR before writing the manual.

...On to your favorite: COMPUTERS. Vista users, attention. If you're ever confused by Microsoft's "best of breed" operating system, you need David Pogue's delightful book: "Windows Vista: The Missing Manual,"  subtitled with Pogue's usual "the book that should have been in the box." But David, 828 PAGES! You must have a lot of free time after writing for the New York Times. This prolific, humorous author is one of the best in making the erudite understandable. Pogue discusses features in Vista that even Microsoft programmers probably don't know. ("Let's see, did we insert UDF in line code 768,001 or 825,402?") The Pointer option in Vista is a good example. "It comes as a surprise to many people that the cursor doesn't move five inches when the mouse moves five inches on the desk [Thanks, David, for pointing that out]. Instead, you can set things up so that moving the mouse one millimeter moves the pointer one full inch--or vice versa--using the Pointer speed slider." How did we ever use Windows without Pogue? No way.

Apple, as readers know, is one of my favorite companies and its website is "easy, fun and full of love." There's little need for manuals and user-guides. Just read "Welcome to Leopard," filled with pictures of hysterically happy Mac users and colorful screen shots, and you're on your way. In case you get stumped, however, you need to read Maria Langer's "Mac OS X 10.5 Leopard: Learn Mac OS X the Quick and Easy Way!" Its 680 pages, compared to Pogue's 828, clearly prooves that Leopard is a lot easier to learn and use than Vista but, of course, everyone knows that. Langer's book, full of bullets, numbers and screenshots, will get your Tiger (sorry, Leopard) going in short order. And, as Langer points out in the introduction: "Athough this book is over 700 pages long, it doesn't cover every single aspect of using Mac OS X. You can find additional material that didn't make it into this book on the book's companion web site (www.marialanger.com/macosquickstart/). Keep Langer's book on your bedstand, because you'll always want an instant Leopard reference guide near you when you wake up at night.

On to Sprint, a cellular carrier that, despite its frequently berated customer service department, writes decent manuals. Unlike Motorola's black-and-white, dry-as-bones writing style or Nokia's "let us tell you why we're THE technology mobile device leader" attitude, Sprint's 209 page user guide for its LG Musiq phone tells you everything you'd ever want to know. For example, on page 67, you find the four steps to add or replace a special number: 1)Select Menu>Settings>More...>Security; 2)Select Special numbers; 3)Select a location for your entry; and 4)Enter the number and press Menu/OK. Couldn't be easier...and fun...

So enjoy your manuals, read them thoroughly, take them with you on dates, put them underneath your pillow at bedtime. Office Depot's 2008 BIG BOOK contains 1,003 pages. Reading a consumer electronics manual (oops, I mean, "user guide") is a piece of cake...with the icing.

If it's any consolation, my Toastmaster belgian waffle maker "use and care guide" is only six pages. Now, if I could just remember not to overfill the baker with too much batter...

Saving Newspapers and the Printed Word in an Electronic Age

Paul Steiger of the Wall Street Journal recently wrote an article--"Read All About It...How newspapers got into such a fix, and where they go from here"--reviewing his 40+ years with the Los Angeles Times and the Wall Street Journal. (An accompanying photo slideshow of the history of media is also available online, although you may need a WSJ online subscription to view the slide show and article--well worth the $99 a year.)

Steiger's reflections on the growth and decline of newspapers, especially upon the dawn of the Internet, speaks about a media communications issue every thinking person should ask: "How can I remain informed, enlightened and entertained in a world dominated by electronic media fighting for advertising dollars, let alone bloggers and podcasters who are increasingly receiving commercial sponsorship? Are printed newspapers worth saving? For that matter, are magazines and other periodicals--the printed word--a necessity in a world where information is readily available electronically?"

I have a personal story to tell. Both my dad and grandfather were employed for 30 years each by the San Jose Mercury News. While both worked in production rather than editorial, they took pride in the results of everyone's work--from reporters to editors to composers to pressmen to carriers. I remember dad bringing home the afternoon paper he helped produce (at that time, the Mercury published two editions). Dad always had a copy of a "reject" under his arm when he came home. (Rejects were flawed papers with smudged ink or torn pages.) Invariably, as he sat in his favorite chair, he read the newspaper he had labored with others to make. He was informed. He knew the important events and issues of the day, because he read one of the most acclaimed newspapers in the country--a paper that had won numerous awards for its excellence.

After dinner, I vividly remember my mom, who tiredly sat down on the couch, while my sister and I watched TV, also reading the paper, learning about world, country and local stories of importance, before she dozed off with the paper on her face. Between listening to talk radio and reading the paper, my mom, a "housewife," knew more about global events than most less-well informed professionals today, who know more about less. Information workers today are knowledgeable about their industries and fields of work but, in my experience, lack interest and know less about world affairs.

Perhaps why I'm writing this post tonight--New Year's Eve--is due to my mom's death this year. She was 88. She lived a good and joyous life and, if she were alive tonight, our family, despite my dad's passing some years ago, would have celebrated their 58th wedding anniversary...after reading the paper first, of course.

Paul Steiger in the Journal also wrote about the impact of radio, television and cable on the newspaper industry and advertising. In his career, both electronic and print media co-existed, sharing advertising revenues and  generating editorial content. It was competitive, but electronic complemented printed media. One fed off the other, just as online media today feed off printed media. Yahoo, Google, MSN, AOL and other Internet giants would collapse without the efforts of print and electronic journalists whose contributions benefit us all. There's little need for search if there's nothing to search, and less need for online advertising without content. Few bloggers and podcasters would publish today without the content delivered by the news organizations.

During the heyday of radio and television journalism, Edward R. Murrow was the conscience of American media. Many of his stories, derived from newspapers, led to some of the greatest broadcast programs in history. If you haven't seen the movie about Murrow--"good night, and good luck," I urge you to view it.   It shows how broadcast journalism in the 1940's and 1950's shared the same fight for advertising dollars as newspapers. The movie also vividly presents the legal and integrity issues online writers struggle with today.

Newspapers, as they fight to maintain high editorial standards, are seeking new and innovative ways to deliver quality content online and in print. It's encouraging to see Yahoo partnering with 176 newspapers, as well as Google working with 50 newspapers. It demonstrates that there is a greater good beyond next quarter's profits or "winner take all" attitudes.

Only through joint efforts and sharing the advertising pie will these efforts succeed. Until then, as Murrow said, "good night, and good luck."