GETTYPeriscope
16 NEWSWEEK.COM
When LexisNexis
Makes a Mistake,
You Pay For It
Errors in the data collected about consumers by
this giant but little-known company could cause your
insurance premiums to soar—or worseare “taking money out of my pocket,”
he says.A BIG PROBLEM LIKELY TO GET WORSE
Errors in consumer reports are a
big problem, says Alan Butler, senior
counsel for the Electronic Privacy
Information Center. “The burden
ultimately should not be falling
on consumers.”
People can have their reputations
hurt by companies they’ve never
heard of, and often don’t know until
the damage is done, according to
Michael Rapp, a Kansas City-based
consumer attorney who says his firm
has litigated dozens of cases against
LexisNexis and companies like it over
more than a decade.
“This is the biggest thing you don’t
know anything about,” he says.thomas tolbert doesn’t
own a motorcycle. But when he
switched insurance companies earlier
this year, his premium almost doubled
based on an incident he supposedly
had on one, he says.
Tolbert says he traced the bad
information to his Comprehen-
sive Loss Underwriting Exchange
(C.L.U.E.) auto report, a collection of
data that auto insurers use to approve
clients and set premiums. C.L.U.E.
reports are generated and sold by
LexisNexis Risk Solutions.
Consumers are often urged to regu-
larly check for errors in credit reports
from the big three bureaus—Equifax,
Experian and TransUnion. But you
may want to add LexisNexis to the list.
The company aggregates and sells
consumer data—about 150 different
reports on people like you. While many
data companies have a niche, such as
credit or insurance, LexisNexis reports
cover numerous aspects of consumers’
financial lives, helping other com-
panies figure out whether to renew
your insurance, approve your loan
or offer you a job, among others. And,
like credit reports from the big three,
your LexisNexis file can contain mis-
takes, such as outdated information
or data about someone else, which can
adversely affect your finances.While Tolbert’s report included the
two vehicles he and his son drive, it
also listed an alleged motorcycle inci-
dent probably involving a different
Thomas Tolbert. (The other Tolbert
could not be located for comment.)
According to the report, the two Tol-
berts both live in Florida and at one
time used the same insurer. They have
different middle initials and different
home addresses. LexisNexis had seem-
ingly confused their data in what’s
commonly known by
industry experts as a
“mixed file.”
Tolbert was able
to correct his C.L.U.E.
report, but he says it
came too late for the
insurer to lower his premium—so
he tried to switch companies again.
A new insurer initially quoted him
about $370 per month for his cars, but
soon revised the quote to about $
because, Tolbert says, he was mixed up
with the same individual again.
Tolbert says this situation has
forced him to reduce his coverage
and go without for a period of time.
And the time he spends disputing the
mixed file—which can feel like a game
of whack-a-mole—is time he can’t
devote to his work in real estate.
The lost time and high premiumBYALICE HOLBROOK
@NerdWalletPERSONAL FINANCEOCTOBER 04, 2019