Discussion in 'Credit Talk' started by RichGuy, Sep 25, 2000.

  1. RichGuy

    RichGuy Guest

    I looked up old posts using the search term "file segregation" and ran across some fascinating debates. Along the way, I checked out, which claims to offer you a new credit file number (for a price.)

    I have a couple of points to make:

    (1) People can howl all they want about how "file segregation is illegal," but the fact remains that it's illegal for the racketeers at the credit bureaus to require use of your SS number for any purpose other than taxes or employment. Credit is not included under the law. It could be that the bureaus actually have to let you start a new file when you confront them with the law, assisted of course by privacyline.

    (2) It seems that some people do go to jail after using file segregation, of a type not condoned by privacyline. But there could be a variety of strange reasons. Some people may default quickly on their new credit accounts, due either to poor planning or to fraudulent intent. Others may obtain an EIN without ever starting a business, or without filing the required reports. Others may be stupid enough to use a new or phony SS number with the same creditors they've already stiffed once, perhaps even at the same address.

    (3) There is an obvious party line that certain authoritarian personality types enjoy throwing at other people. They never bother to verify its accuracy; they simply hope it's true, because that would mean someone else is getting punished. I did a web search for "file segregation" using Lycos, and found that a single government handout accounted for about 90% of the items. A variety of private web sites simply repeated what the government wanted everyone to think. I decided to keep looking elsewhere.

    (4) I don't recommend that anyone use file segregation, of any type. But I do recommend that you inform yourself about what it is and what the legal and administrative issues are.
    The illegal use of SS numbers for issuing credit is destroying what's left of our liberty and privacy. Some people may not care as long as they get that Citibank card or Providian waives that annual fee. But I hope that some of you will care. This is an issue with implications beyond the Target parking
  2. Michael

    Michael Guest


    I read the Legal portion of and I feel that the test for the legality is the clause about intent.

    I think a man who is earning $60K a year got devorced, wife screwed up their credit, would never be prosecuted as the intent was to pay off any new loans.

    On the otherhand someone setting up 5 different Privacy Numbers would have a problem regarding his/her intent!
  3. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    Itâ??s A Sham, Itâ??s Illegalâ?¦ PER

    RichGuy & Michael:
    I agree that social security numbers were never intended for any use, other than identification by the Social Security Administration. Yet misappropriation of 5 U.S.C. §522a, inclusive, isnâ??t by any means a fix all to poor credit. But then itâ??s a matter of trusting a source so letâ??s see what itself has to say..? The following is a direct quote from the website â??legalityâ? page:

    "Under the Privacy Act, Title 5 of the United States Code annotated 522(a), `It shall be deny any individual any right, benefit, or privilege provided by law because of such individual's refusal to disclose his/her Social Security Number.â??" Hummm, wonder what they left out?

    Funny, but if one reads the entire Act something becomes certain. This Federal statute pertains strictly to governmental agencies, not private ones! Look what the operators of conveniently left out: â?¦for any Federal, State or local government agencyâ?¦ to deny any individualâ?¦ (so on and so on). Albeit donâ??t take my word for it, read the entire Act for yourself: Strangely, the subsection quotes was never codified as part of the Act.

    Additionally, infers itâ??s been helping folks since 1989? Hello, the website wasnâ??t even registered as a domain by NSI until 24 September 1999 â?? a smidgen over a year ago. Hay who knows, maybe these are among the same idiots who got busted during the FTCâ??s April 98 crackdown? (Read more about it here: and started biz again under a different name? It wouldnâ??t surprise me in the least.

    Yet file segregation isnâ??t only illegal, it simply doesnâ??t work! That is since 1994 when the Magic Verification system went into place, a method of cross verifying the SS# of credit applicants. File segregationists donâ??t seem to mind, however, even though eight out of ten application attempts are now stopped cold! Problem is once Magic identifies a bogus number (actually an EIN); itâ??s reported as a file variation on the subject credit report â?? a hawk alert that thwarts any granting of credit! Sooner or later, this scam fails.

    Okay, RichGuy, maybe whimsical thinking on your part regarding your third point? But I could tell you some first hand stories of how file segregation scams hurt some well meaning folks. So if this debate grows in interest, Iâ??ll probably do that. The point being is that the truth about file segregation is not just propaganda, encouraged and promoted by Big Brother. Itâ??s a real issue that hurts real people.

    Keep The Faith,
    Anthony Villaseñor
  4. Pat

    Pat Guest

    RE: Itâ??s A Sham, Itâ??s Illegalâ?¦

    wire fraud: 5 to 20 in federal prison.

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