Congress is set to last do something that will benefit US consumers in response to the Equifax breach last twelvemonth — beyond excoriating the company ’s executives on bouncy tv set . Yet , as with everything , it will come at a cost .
As many as 17 Democrats are lend their vote to a Republican banking eyeshade that will scale back sweeping reform passed in the aftermath of the 2008 fiscal crisis by rolling back or dismantling parts of Dodd - Frank . Known as the Crapo bill — after Banking Committee Chairman Mike Crapo , Republican of Idaho — the legislating include a bipartisan agreement that will enable consumers to initiate credit freeze at no charge .
Credit report agencies , like Equifax , will drop off a source of gross in the peck . But not everyone is pleased . Some consumer proponent indicate the measure may embarrass the efforts of some land ’ to pop off more rigorous citation - frost requirements . Only eight United States Department of State at present tense , however , assure consumer free accession to credit freezes — a mechanism that prevents loaner from get at credit reports , thus hindering identity thief trying to get credit or open account in victims ’ names .
loose citation freezes were among the bevy of answer cast away around in Congress last twelvemonth in response to the Equifax breach . Others include creating minimal datum security standards for credit reporting agency — Equifax , Experian , and TransUnion being the primary three — and increasing Federal Trade Commission oversight of protection practices . Some lawgiver also sought to debar credit firms from draw consumers into arbitration , which hinder family - activeness lawsuits in reply to negligent practice .
Notably , the credit - freeze accord has zero implications for the industry ’s security measures standards . Equifax ’s own negligence was the biggest contributing factor to the breach , the largest of its sort ever report , resulting in the theft of more than 145 million consumers ’ personal information , including Social Security numbers .
Social Security number have long been used as trial impression - of - identicalness in exchanges with fiscal foundation , among other industries . The numbers have been treated more or less as a case of passphrase — one that most consumer are ineffective to change , compromise notwithstanding .
Duringa hearingbefore the Senate Commerce , Science and Transportation Committee in November , Entrust Datacard CEO Todd Wilkinson submit that Social Security numbers should no longer be used as the primary substance of identifying consumer , portray them as an antiquated security measuring rod that could only conduct to further abuse .
The banking note carrying the credit - freeze agreement — also known as the Economic Growth , Regulatory Relief and Consumer Protection Act — has been denounced as a “ gift to Wall Street ” by reformist Democrats aim to two XII of the res publica ’s top banks , where protection reach through Dodd - Frank stand up to be relaxed or break up entirely .
“ The Senate — with the support of some Democrats — is set to start out debate on a billhook to roll back regulations on the same big banks we bail out a few years ago , ” Sen. Elizabeth Warren , Democrat of Massachusetts , told reporters on Tuesday , according toCNN . “ If we suffer the concluding vote next week , we ’ll be paving the way for the next big wreck . ”
advocator of the bill , however , argue that the legislation will supply much needed relief to smaller banks that have face rising costs in the wake of Dodd - Frank , leading to a worrying increase in camber acquisition activity .
With the help of the Democrats , the placard is a shoo - in to reach next week after a formal debate .
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