Category Archives: Privacy

Credit Bureau Industry Still Seeking Caps on Damages After Equifax Breach

by Jeff Sovern Much has been made of the fact that the day the Equifax breach became public, Congress held a hearing on bills that would have limited damages credit bureaus would have to pay for misconduct.  This past Tuesday, the Senate Banking Committee held a hearing titled Consumer Data Security and the Credit Bureaus […]

More Tough Talk in the Senate About the Equifax Data Breach; Will It Lead to Changes in the Law?

by Jeff Sovern Yesterday the Senate Banking Committee held a hearing on consumer data security. The Hill covered it, in a report headlined Senators bear down on credit reporting industry over data security.  Here is an excerpt: “If they lose my data as Equifax did, or if someone submits to them data that is an error […]

The CFPB and Data Breaches, Plus WSJ: Equifax Hack Drives GOP Bill to Overhaul Credit Bureaus

by Jeff Sovern The WSJ article is here.  Excerpt: Rep. Patrick McHenry of North Carolina introduced a bill to require the three major credit firms—Equifax, Experian PLC and TransUnion—to submit to regular federal cybersecurity reviews for the first time. All three companies also would have to phase out their use of Social Security numbers to verify consumers’ […]

Former Equifax CEO Pledges to “Make it Right” for Consumers–But Won’t Promise Compensation

by Jeff Sovern I've been listening to the several hearings in Washington this week at which former Equifax CEO Richard Smith testified. I haven't finished yet, and may have more to say, but here's a quick observation.  Mr. Smith testified at various points that Equifax planned to make things right for consumers.  For example, here […]

Critics Who Want to Weaken CFPB Complain It Doesn’t Do Enough

by Jeff Sovern There's been a steady drumbeat of criticism for the CFPB from certain members of Congress for not moving sooner on the Wells Fargo unauthorized account scandal.  These critics also tend to support legislation, like the Financial Choice Act, which would take away the power the CFPB used to fine Wells Fargo for […]

The Hill Reports on Equifax Hearings and Legislation Congress is Considering

by Jeff Sovern The article is headlined Congress grapples with preventing the next Equifax-level hack. Excerpt: Their ideas included like fining companies that fail to adequately protect consumer data, restructuring the credit reporting industry to allow for more competition and requiring data holders to notify consumers whose information has been compromised. A slew of legislation aimed […]

Did Equifax Lobby Against the Laws that Forced it to Disclose its Breach?

by Jeff Sovern As has been widely reported, Equifax waited about six weeks to disclose its breach, which makes me wonder if we would ever have learned about the breach if the laws requiring disclosures of breaches didn’t exist.  And in recent years, Equifax has lobbied aggressively on breach laws.  All this left me curious […]

Report that CFPB Could Use UDAAP Powers House Has Voted to Repeal Against Equifax

by Jeff Sovern Reuters has a report here.  Excerpt: The U.S. consumer finance watchdog agency is expected to punish Equifax for its cyber breach with the wide-ranging powers it has used with Wall Street, former agency officials and lawyers said this week. The credit-reporting company is subject to five federal laws governing listed companies, the […]

Senate Banking Committee To Hold Equifax Hearing; Equifax CEO Only Witness

by Jeff Sovern More here.  We can expect that the senators will attempt to outdo each other in attacking Mr. Smith, but that some will still try to protect Equifax when the cameras are off, by weakening regulators (as some members of Congress are attempting to do in the House-passed Financial Choice Act, by eliminating […]