Lawsuit: LifeLock Misrepresents Identity Theft Protection Services

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A proposed class action has been filed against LifeLock, Inc. by two consumers who claim the company misrepresented its identity theft protection services and failed to deliver on its promises. LifeLock allegedly offers three plans that range from $9.99 to $29.99 per month and offer consumers varying levels of identity theft protection. All three plans, according to the suit, promise that the company will notify consumers if their personally identifiable information is stolen and reimburse them for the costs of repairing any damage caused by identity theft.

The first plaintiff claims LifeLock failed to inform him of a false change of address that was filed under his name with the United States Postal Service (USPS) and a credit bureau, followed by two fraudulent credit card applications with Bank of America and the Navy Credit Union. The suit argues that “the number of banks and credit card issuers that LifeLock monitors or about which it otherwise learns of new credit applications is exceedingly small,” meaning the company provides “no protection whatsoever” if a consumer’s information is used at a financial institution it does not monitor.

The man further claims that he informed LifeLock of each event and was not offered any assistance with “closing these accounts, paying costs associated with them, or otherwise clearing up the damage done to his credit” – services his plan allegedly promised to provide.

The second plaintiff says LifeLock did notify him of changes of address with the USPS and TransUnion, but he supposedly received the notifications “nearly 40 days” after the address changes were initiated. According to the complaint, LifeLock does not purchase change-of-address data directly from USPS, and, if it does purchase the data at all, “can only obtain that data on a weekly, monthly, quarterly, or annual basis, not contemporaneously or even daily.”

The suit further notes that the company failed to investigate a possibly fraudulent credit card inquiry found on the second plaintiff’s credit report, presenting issues when he applied for a mortgage “several months later.”

The case argues that LifeLock does not deliver on its promises to protect consumers against identity theft, timely notify them of address changes, and assist them in repairing damage to their accounts and credit. The complaint notes that the company has been sued twice by the Federal Trade Commission for “making misleading statements concerning the nature of its service” but continues to deceive consumers into paying for protection while providing “nothing in return.”