Verizon Sells Bill Pay Histories To Creditors

New incentive to pay your phone bill on time, Verizon will now provide your bill payment histories to credit report agencies. The practice is becoming common among companies that issue monthly bills.

This is good news if you’re credit worthy but lacking the sufficient history of mortgage, car loan or credit card payments. Likewise, bad news if you’re a bum.

The matrix blossoms.

Verizon Reports More Credit Info [RedOrbit]

Comments

Edit Your Comment

  1. mrscolex says:

    and see? This is the reason why I don’t care about identity theft ;)

    Any mexicano with my identity would promptly spit it back out. “No way senor, that chico’s got problems.”

    Harrison Ford uses equifax to fight identity theft, Mr. Scolex is a bum.

  2. The Comedian says:

    The use of “Sells” in your post title suggests that Verizon is getting paid for providing the information.

    The linked article only says that Verizon will be credit reporting, not that the credit agencies are buying the information.

    Were you generalizing, or do you have some outside information suggesting that Verizon is benefitting directly by supplying payment histories to credit bureaus?

  3. Gari N. Corp says:

    To be honest, I assumed they were already doing this. I arrived in this fair country a few years ago, and had the usual hassle getting a cellphone contract. A couple of years of paying utility bills (landline, ConEd), and they seemed to warm to me. At which point I got a cellphone, credit card, and oceans of junk mail. The American dream made flesh.

  4. Ben Popken says:

    Comedian: No evidence. Only logic. Why would Verizon provide the information, which is a cost for them to make available, without getting something in return?

  5. TedSez says:

    I assumed they were already doing this as well… which is why, after years of procrastinating, I finally signed up for online bill pay. I haven’t had a late payment since.

  6. The Comedian says:

    Typically creditors and collectors that report information to credit bureaus do so only for the secondary benefits, not for any direct renumeration that they receive.

    Credit reporting helps goad slow payers into paying their bills on time. It helps foster an environment in which credit is cheap and easy to obtain.

    (Disclosure: From 1995 to 2000 I worked for a software company that specialized in a debt collection package used by several hundred collection agencies & creditors to track slow/bad debt. I’d never heard of anyone selling their information to the bureaus.)

  7. Ben Popken says:

    By reporting your customer’s data you get:

    “Access to Experian’s Management Reports – Experian’s Management Reports will identify customers who are late paying other vendors and who still may be current with you, which will help you minimize your risk on future sales.”

    Counts as payment-in-kind, which counts as a sale.

  8. AcidReign says:

    …..The credit folks have been selling your info for decades. For me, after getting out of school, it didn’t take but a year of working and maintaining a $1000+ checking account balance for the credit card offers to come pouring in.

    …..TedSez is right. Online bill-pay is sweet. No hunting a pen that works, or stamps, and dealing with stacks of paper and ads in your bill! Just make sure your system/network is secure. If a hacker gets the bank routing number and your checking account number, you’re in a world of hurt. That money will be gone, gone, gone. And you’ll be left with a lot of nasty service charges and ruined credit…