Influencers can be helpful to credit unions. Whether they are used for testimonials or as a “live” advertisement, having a person with some online clout promote credit unions products can be a cost-effective, poignant way to get the word out…except when it’s not.
Recently, the Federal Trade Commission (FTC) issued an alert concerning an influencer trend of encouraging consumers to file a false identity report to eliminate debt. Not only does this render a credit report inaccurate, but it’s also a violation of the law and could lead to fines or even imprisonment for the consumer that chooses to follow this advice. Credit bureaus like Experian and Trans Union can’t remove information from a credit report unless it is inaccurate. Filing false identity theft reports can lead to the removal of information that is, in actuality, accurate.
Perhaps more problematic than the actual trend, some influencers are representing themselves as credit experts or credit repair experts. This representation creates a false context that can lead to the consumer following the trend to file a false report. When used effectively, influencers can effectuate positive change or provide a convenient information delivery conduit. However, claiming to have expertise when there is no formal training or certifications can be ultimately damaging to the consumer availing themself of that advice.
So, how do credit unions address this trend? One suggestion is to engage with membership and educate them on the purpose of a credit report and effective debt elimination tactics, such as payment plans and budgeting advice. While many consumers may already know some of that information, the purpose of credit reports can be less obvious to consumers who do not engage with loan products or who lack financial expertise.
Additionally, if a credit union uses an influencer in an advertisement or for marketing purpose, educating the influencer on financial topics can help the influencer stay accurate while still staying influential. There is possibly no better witness than a person who has experienced something firsthand. Engaging with an influencer in way that expands that influencer’s financial expertise can lead to marketing opportunities, that are fun, creative, and most importantly, accurate.
What should a credit union do if it discovers one of its members filed a false report? In order to report a false claim of identity theft, a credit union can visit FTC’s Fraud website and follow the steps.
Finally, as a regulatory reminder, credit unions reporting credit information to a credit bureau are required to report as accurate information as possible. In addition, the regulations require that a credit union establish and maintain written policies and procedures “regarding the accuracy and integrity of the information.” The regulations further require that these policies and procedures be reviewed periodically and updated when necessary.
Have questions or want to know more? Contact ViClarity’s compliance services team at compliancesupport@viclarityus.com.
For more information, email Heather Line.
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