Congress to Support Identity Theft and Attack Consumers' Rights

first posted at Scrutiny Hooligans

USAToday: "Congress is considering pre-empting laws in 17 states that allow anyone to freeze their own credit and instead restricting the privilege to ID theft victims.

The proposed Financial Data Protection Act of 2006 [HR3997], expected to be voted on by the House as soon as next week, comes on the heels of the recent theft of sensitive data for 26 million veterans and active duty military personnel. If it becomes law, vets and military personnel who live in states that permit unrestricted credit freezes would lose that option.

A credit freeze cuts off access to your credit history. Since most banks and merchants insist on seeing a credit report before issuing credit, identity thieves can't open bogus accounts using ill-gotten data. Under the bill, backed by the financial services industry, simply having your data lost or stolen isn't enough. You must file a police report describing a specific instance of it being used to commit a crime."

RNinNC: "The concerns of this list of consumer advocates are stunning: notifications to credit holders of possible identity theft would be minimized; credit freezes would be delayed by law until actual loss is sustained and a police report is submitted; current state level safeguards would be dismantled; state and local authorities would no longer be required to be informed of security breaches; banks may be able to rewrite their regulations to meet these lower standards, therefore only being required to disclose informational loss in the event that "substantial harm or inconvenience" has already occurred; oversight of guilt in loss of information would fall on the Feds - (wonder how much they'll punish their big donors?); there is no provision for non-English speakers to receive notice."

More info here

Six Point Summary of How Much This Bill Will Hurt Consumers here (pdf).

It's time to contact your Congressional representatives and let them know what you think of the "Financial Data Protection Act". Like the Clear Skies and Healthy Forests acts, this bill does the opposite of what it suggests in the name. For those of you here in NC, the number for Elizabeth Dole is (919) 856-4630, and the number for Richard Burr is (336) 631-5125.

Comments

Great Info!

Thanks Screwy!



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