LifeLock settles with Experian to not set fraud alerts

Identity theft prevention provider LifeLock has agreed to not place any fraud alerts on customer credit files, under a settlement with credit bureau Experian.

The settlement, announced Thursday, rose from a 2008 lawsuit in which Experian contended that LifeLock violated the Fair Credit Reporting Act when it placed fraud alerts on behalf of consumers, according to an Experian statement. The company had alleged that it was "harmed" by  LifeLock being able to set fraud alerts.

The alerts, which require creditors to verify any credit extensions, can only be placed with the three major credit agencies -- Experian, TransUnion and Equifax -- by consumers, under federal law.

LifeLock thus is barred from placing alerts with any consumer reporting agency, such as Experian, the statement said.

A LifeLock statement said the company plans to focus on a new identity theft protection service, which reportedly does not contain fraud alerts. 

"The end of this lawsuit is a positive for LifeLock and will allow the company to move forward in its fight to protect consumers and their personal data," a LifeLock statement said. "We are very pleased with the outcome."