P.S. To be more clear: the company giving the loan should prove that I signed the documents, not I that I didn't sign them. The presumption of innocence if you will.
Years ago I rented at a crappy apartment complex. When I left their check out basically meant you always owed them ~$200. I paid and moved out of state. 6 months later I get a collections call saying I didn't pay the bill. I told them I paid it, she said it wasn't and said it was going on my report unless I paid that day. Luckily I paid by check and my bank (like all banks I guess now) keeps canceled checks online for pretty much ever. So now I had to go back 6 months and find this check then call the apartment then the collections agency, etc... A HUGE hassle and time waster for me all because the apartment complex employed incompetent people.
The kicker was that the girl trying to collect from me said "people make mistakes and you can't blame them." Um, when I make a mistake and forget to pay a bill you guys jump all over me. You make a mistake and it's still my problem to solve.
1) He will never be responsible for any of these claims from merchants ("seller beware") 2) Any major transaction would not go through since they'd pull a credit report and see his profile is frozen (I believe LifeLock just freezes credit for you on your behalf)
Given the above, it seems like this is a trade-off between the time spent getting this stuff off your credit report (I think you would just file an error with the bureau, but perhaps it's more involved), vs. the benefit gained by the marketing tactic.