Verified Identity Pass shuts down airport operations
NEW YORK - Verified Identity Pass, a company that promised to speed passengers through airport security checkpoints for an annual fee, has shut down, leaving some frequent fliers looking for options to avoid long screening lines and wondering what will happen to the personal information they gave the company.
The company said it wasn't able to negotiate a deal with its creditors, and its Clear fast-lane security check service stopped operations abruptly late Monday. More than a quarter million customers won't get refunds of membership fees that ranged from $178 to $199 per year.
"At the present time, because of its financial condition, Verified Identity Pass, Inc. cannot issue refunds," the company said on its Web site.
Some members received e-mails about the closure, while others found out at the airport when they discovered Clear lanes were cordoned off.
Lois Easton, an education consultant from Boulder, Colo., was turned away by two TSA officials Tuesday morning from a Clear lane at Denver International Airport. She was headed on a 10-day business trip with stops in Newark, N.J., and Tallahassee.
"I did buy a three-year membership, so I'm not very happy about all of this," Easton said. Nearby, workers were dismantling three Clear screening machines.
"I travel a lot for business, often every week," Easton added. "It's in enough of the airports I'm in, so it's worth it. It saves me a lot of time, a lot of stress."
Clear was founded in 2003 by Steven Brill, the businessman behind media ventures such as CourtTV and American Lawyer magazine. It originated with a program set up by the Transportation Security Administration called Registered Traveler, intended to shrink swollen security lines in the wake of 9-11. Clear operated at about 20 airports.
Brill, who left the company in February when a group of investors took control of the company, didn't provide any specifics about why the company shut down.
"I can only speculate about the causes of the company's demise," he said. "What I do know for sure, however, is that the need for intelligent risk management hasn't diminished and that programs like Clear should have a role in our future."
The TSA tried to balance the desire to cut wait times and ease travelers' stress with the importance of ensuring proper screening, but it still required travelers to go through the same security procedures as everyone else in line.
Now that the service is defunct, some wonder what will happen to the personal information held by Verified. The company's Clear service required members' fingerprints, iris scans and other identifying traits.