Freddie Mac's Definition of; "What is a CPN?"
The CPN is a nine-digit identification number that looks like a social security number (SSN) and may be used in lieu of an SSN, for such purposes as obtaining credit.
One has the legal right to keep his/her SSN private. In certain circumstances, consumers are required by law to disclose their SSN, such as to the Internal Revenue Service, employers, when registering a motor vehicle, buying a firearm, or applying for a federally insured loan.
In other circumstances, federal law allows consumers to legally use a separate identification number, hence the opportunity to establish a CPN for a credit file.
FBI's Definition of; "What is a CPN, Piggy Backing, & Seasoned Tradelies?"
34) A FICO score is a credit score that determines the likelihood that credit users will pay their bills. The score is developed using models and mathematical tables that assign points for different elements or pieces of information that best predict future credit performance. FICO scores range from 300 to 850, and are calculated based on payment history, balances owed, length of credit history, types of credit used, and new credit history.
FICO 08––introduced in the latter part of 2008––is a new scoring formula designed to more accurately predict loan defaults. One of the primary purposes of FICO 08 was to eliminate the practice of “piggybacking.” This occurs when individuals are permitted to add authorized users on their credit accounts to boost their credit scores. Many lenders have opposed this change because it inhibits compliance with Federal Reserve Board regulations and hinders authorized users, such as wives and college students, from establishing or maintaining a credit rating.
35) Credit Privacy Numbers (CPNs) are nine-digit file numbers that follow the same algorithm as Social Security.
Account Numbers (SSANs). Currently, federal law allows individuals to legally use CPNs for financial reporting and protects those individuals who do not wish to disclose their SSAN. Individuals who acquire CPNs are completely responsible for any debt they incur using this number.
36) Seasoned trade lines are lines of credit that are held open in good standing for an extended period of time, typically for at least two years. http://www.fbi.gov/stats-services/publications/mortgage-fraud-2008
Wise Geek Definition of; "CPN Numbers and Legal CPN."
The Credit Privacy Number, or CPN, is a nine digit identification number that can be used to report financial information to credit bureaus. Available for use primarily in the United States,
the number can be used instead of an individual�s Social Security number for many types of credit transactions
. However, the CPN should not be viewed as an equitable substitute for the Social Security number in all situations.
Also known as a credit profile number, the CPN has its main advantage when it comes to tracking credit transactions and evaluating credit history. Rather than using a Social Security number for all credit transactions, using a credit privacy number makes it easier to segregate finances in the event of identity theft. Without access to a Social Security number, the thief is somewhat limited in the amount of difficulties that are created for the rightful owner of the number. This is because there are several types of financial transactions that cannot be conducted using this number.
One truth about CPN usage is that there are many citizens of the United States that routinely use this type of identification number. Celebrities often use one as a means of protecting their privacy when it comes to credit cards, loans, and other financial transactions. Members of Congress are also likely to use it in order to minimize the chances of private details about their finances being released to the general public without their authorization. People placed within a witness protection program are often issued a CPN, as it is much harder to track than a Social Security number.
Any citizen of the United States can request and obtain one of these numbers. However, it is only possible to receive one CPN. Certain resident aliens, spouses, or dependents can also apply for one if they have an Individual Taxpayer Identification Number (ITIN). The number remains constant from the date of issue and is connected with the owner of the number for the remainder of his or her life.
As with a Social Security number, the owner is responsible for using the CPN with prudence.
This means knowing what type of transactions require use of a Social Security number and which transactions may be conducted using a CPN.
Wiki Answers; Definition of; "CPN Numbers and Legal CPN."
The CPN is a nine-digit number that has the exact same genetic makeup of a Social Security Number. This is not a government issued number like an EIN or TIN. This number is NOT a new social and NOT a tax ID or EIN.
It is simply an available file number at the credit bureaus that can have financial information reported. You have the right to establish this number only once, so do not abuse it.
This explanation is not here to advise anyone to misrepresent your Social Security Number, as you are completely responsible for any debts you incur using your Credit Privacy Number. It is your legal right to keep your Social Security Number private, and use a separate number for any credit related purposes. You are only required by law to disclose your Social Security Number to the Internal Revenue Service, your employer, when registering a motor vehicle, buying a firearm, or applying and obtaining a federally-insured loan such as FHA, Sallie Mae, etc. I encourage you to use the laws to your advantage. Each credit bureau works on a different schedule. In addition, the CPN is used by celebrities, congress members/government workers, and witness protection reasons. For example, celebrities use it because the media can use their SS# to track what they are buying and where they are simply by tracking their credit cards. Further, in example, congress holds special privileges to the law; therefore, their privacy needs to be protected. In another example, witnesses under protection can be located if they use their true social security number for transaction. This is the reason why there is the existence of a Credit Privacy Number program. Legality of the CPN: Presently, federal law allows the ability for someone to legally use a private ID # for financial reporting purposes instead of a Social Security Number.
Transactions that cannot be conducted using a CPN include information given to an employer, documents submitted to the Internal Revenue Service, and registering a car or truck. The number also cannot be used when applying for one of the several government sponsored home loan options, such as Sallie Mae or a FHA loan. However, a legal CPN can be used when applying for credit cards and obtaining financing that is not government related.
One of the urban myths surrounding the use of a CPN is that the credit file number can be used to avoid paying outstanding debt. In fact, the individual remains liable for all debts incurred on credit accounts referencing a Social Security number or a CPN. Obtaining this number will not result in establishing new credit to replace bad credit generated under a Social Security number.
Title 5, Section 7 of Publication Law 93-579 of Government Organization and Employees Act: ...(a) (1) It shall be unlawful for any Federal, State or Local Government Agency to deny any individual any right, benefit, or privilege provided by law because of such individual's refusal to disclose his or her's Social Security Account Number. The law states that No federal, state, or local government agency may deny you any right, privilege or benefit due to your refusal to provide your SS # for any other reason than producing money for retirement account with the Social Security Administration, the IRS and your employer today. Credit Bureaus are not legally allowed to "require" your Social Security Number. In our country's present credit reporting system a person may be assumed guilty and then must expend a great deal of time and resources to prove his or her innocence. Additionally, once a negative item is in a credit file it may remain long past the 7 year time period most people believe is used. Additionally, a misreported item can show up in a credit report multiple times. When it comes to credit, banking and loans, there are two things you must know. The first relates to the law pertaining to the usage of your social security number as an identification tool. The second, credit bureaus are private companies and are not affiliated with the government in any way, whatsoever. Although, the credit bureaus would like you to think otherwise.
---What all this means is Federal Law protects those who do not wish to disclose their personal information (SS#) except when required to do so. All that to say: Instead of a Social Security Number, with the right planning, you now have the opportunity to establish a Credit Privacy Number (CPN), as it is your right to have one.
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