[Congressional Record Volume 164, Number 20 (Tuesday, January 30, 2018)]
[Senate]
[Pages S582-S583]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. REED:
S. 2362. A bill to amend the Fair Credit Reporting Act to require
that a consumer authorize the release of certain information; to the
Committee on Banking, Housing, and Urban Affairs.
Mr. REED. Today, I am introducing the Control Your Personal Credit
Information Act, which seeks to give consumers greater control over
when and how their consumer reports are shared by consumer reporting
agencies.
Under existing law, the current consumer reporting system is
backwards. Consumer reporting agencies collect vast amounts of personal
information on consumers, often without our knowledge, in order to
compile consumer reports. These reports are then shared with financial
institutions and others without our consent in all cases.
In the wake of Equifax's failure to secure troves of valuable
personally identifiable information it collected on over 145 million
Americans, it is clear that this system must change. Indeed, the
National Consumer Law Center's
[[Page S583]]
Chi Chi Wu stated in her October 2017 testimony before the House
Financial Services Committee that the Equifax breach ``means half of
the US population and nearly three-quarters of the consumers with
active credit reports are now at risk of identity theft due to one of
the worst--if not the worst--breaches of consumer data in American
history. These Americans are at risk of having false new credit
accounts, phony tax returns, and even spurious medical bills incurred
in their good names.'' To make matters worse, the risks of identity
fraud may not dissipate over time because as Ed Mierzwinski, U.S.
PIRG's Federal Consumer Program Director, points out ``unlike credit
card numbers, your Social Security umber and Date of Birth don't change
and may even grow more valuable over time, like gold in a bank vault.
Much worse, they are the keys to `new account identity theft.'''
My legislation attempts to address these concerns and fix the current
upside down system by giving consumers greater control, at no cost to
the consumer, over when and how their consumer reports are released
when applying for new credit, a loan, or insurance. Under my
legislation, consumer reporting agencies must confirm a consumer's
identity and obtain their written authorization before releasing
consumer reports in the instances that are especially vulnerable to
identity theft and fraud. In addition, my bill requires every consumer
reporting agency to take appropriate steps to prevent unauthorized
access to the consumer reports and personal information they maintain.
These steps are designed to make it tougher for criminals to
fraudulently open new credit or insurance accounts in other people's
names.
I urge my colleagues to cosponsor this commonsense legislative
effort, and I thank the National Consumer Law Center (on behalf of its
low-income clients), U.S. PIRG, Americans for Financial Reform, Public
Citizen, Consumer Federation of America, and Consumers Union for their
support.
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