San Francisco Chronical – June 18, 2006:
Orinda resident Sylvia Coates compiles book indexes for a variety of publishers and authors. So that she can be paid, her Social Security Number has ended up in a lot of different hands over the years.
To protect herself from identity theft, Coates maintains a “freeze” on her credit files — a system whereby no lender can run a credit check without first seeking her permission. California has required that consumers be granted this right since 2003.
But federal legislation that could come up for a vote as early as this week would pre-empt credit-freeze laws in California and 17 other states, and would limit the right to victims of I.D. theft.
The so-called Financial Data Protection Act of 2006 (HR3997) would also weaken state laws requiring disclosure of security breaches.
Under the proposed federal legislation, such disclosure would have to be made only if a company determines that a security breach “is reasonably likely to result in harm or inconvenience” to individual consumers.
“This is the worst data bill ever,” he said. “It’s truly a bad bill.”
But what’s the upside to this? What are they looking to actually do? I mean, weakening the anti id theft protections has to be more of a side effect of something broader the bill is actually written to do…but what is that?
It has to be more than just protecting banks from lawsuits.
Who’s the sponsor?
“Who is the sponsor?”
The chief author of HR3997, Rep. Steve LaTourette, R-Ohio. The real question is, how much did the banking industry donate to this scum bags re-election campaign.
The saddest part is that this is business as usual in our nation’s capitol.
Call your reps and tell them to vote against this legislation. To learn more visit the website of this radio talk-show consumer advocate http://clarkhoward.com/ who states “Freezing your credit helps prevent ID theft and helps minimize the damage if it’s already happened.”
This is bad legislation for you and I but it’s great for the banking industry. Rep. Steve LaTourette, R-Ohio has been in office so long he forgot who he works for.
Alan
It’s not just the banking industry supporting this bill. The credit reporting agencies don’t like credit freezes because they make money selling your credit info. And the National Association of Retailers doesn’t like credit freezes because consumers will do less impulse buying in the stores because they can’t open “instant credit” accounts without first unfreezing their credit. The deck is stacked against the consumer.
I heard a report on this yesterday on NPR. The ones most behind this are — as bizarre as it sounds — stores like Target, K-Mart and others. If there is a lock on your credit report, they can’t process new credit card apps at the cash register. You know how a store will say, Sign up today and get an extra 15% off? Impulse credit card signing. Can’t happen with a credit lock. They consider them restraint on marketing.
Talk about a bill’s title being opposite of what the bill does. It’s about protecting credit issuers from consumers.
“The ones most behind this are — as bizarre as it sounds — stores like Target, K-Mart and others”
Nice, nothing like taking advantage of the lower income people who shop there and can least afford to create more debt.
how could anybody be surprised that the republicans would favor the needs of the banking industry over the safety of ordinary citizens?
that’s what they do at every opportunity, they’re pro-business
in the neo-con world, human beings exist solely to purchase products from business, and those businesses should be free to do whatever they want, without ever being held to account.
in the neo-con world, no one may expect their government to protect them against unscrupulous businesses.
“how could anybody be surprised that the republicans would favor the needs of the banking industry over the safety of ordinary citizens?
that’s what they do at every opportunity, they’re pro-business”
I would reserve judgement on that until we see how many Dems also support this. Your assuming the Dems are looking out for needs, how naive. Remember a well greased pol will vote in your favor now matter his/her party.
It definitely does sound like something fishy is going on, but let’s remember some important facts:
1. Having credit is OPTIONAL and NOT A HUMAN RIGHT. These are PRIVATE companies that are giving you THEIR money to use. Let’s not make these borrowers “victims” that are swayed by those crafty minimum wage cashiers asking you to sign up for the store card.
2. There are plenty of people in this country that believe borrowing is wrong, and that people should live on what they earn (see my parents who lived debt free all their lives). It is bulls**t to think that one can not lead happy, productive life without constant borrowing. Don’t like the hoops the credit card companies put you through, don’t take out a loan. Need the convenience of credit cards, use a DEBIT CARD (which requires *no* credit lookup).
3. If someone steals your identity, guess what people, YOU ARE NOT LIABLE FOR THE DEBT! It’s the LAW. As far as it screws up your “credit rating”, please see #1 and #2.
Sorry Lou, a bit unrealistic in todays world.
Lou, You may not be liable for the debt but you still have to deal with the creditors, collection agencies and so on and as you know that is nothing but FUN!
Lou, you are so naive. So many things are verified with your credit score.
Go ahead, apply for a job, they all want to know your credit history. A bad history could very well deny you even a promotion.
No credit and you want to fly? Right, how is Homeland Insecurity going to check you out?
Want to open a bank account? Guess who also is interested in your credit score.
#15 Mr. H. fusion you are so RIGHT! And don’t forget auto insurance! Try getting a decent rate with a screwed-up credit score. More and more insurance companies look at the credit score to assess risk. The agent will laugh all the way to the bank.
#13. Unrealistic. Bull. Give me ONE good reason (other than a car loan or mortgage) does one need a CREDIT card.
#15. Please don’t make up fun facts, or use an extremely small minority of jobs for your point. I’ve applied for many jobs (and have employed many) and I’ve never had any credit bureau check done. I know a number of fellow IT people who work at fortune 500 accounts, who like me, monitor who looks at our credit report, and NEVER have I heard about that our potential (or current) employers looked at our reports.
* No credit and you want to fly? Wrong again. Once again, don’t make things up. I paid my travel agent with a check, and she booked my vacation (last year). The credit card issue *never* came up.
* Want to open a bank account? Blah, blah, blah. Walk into a bank with a cashiers check for $5000. (or $50). or a regular check. They’ll gladly open an account for you.
Please, Please, all of you. give me ONE REAL instance where someone was denied something because they had no preapproved credit of some kind. I am not talking about someone who owes money, I’m talking about someone who is not involved in getting credit of some kind from a PRIVATE entity.
Please, please don’t make up hypothetical stories, or use a one in a billion situation, to make a point.
#17 Lou- If you really believe the things you’re saying why not prove it by posting your personal information on this blog. SS# and all. And if you choose not to, please let us know why, because THAT is the reason this legislation must not pass.
#18 Alan – I do believe what I said, and if you notice in my original post, I did say something was fishy with the bill.
As a libertarian, I believe in responsibility, both individual and corporate. If a corporation in the credit industry screws up my life by being negligent with my personal information, or verifying my identity, well, they should pay.
As to posting my SS#, I won’t do it, cause I don’t want to make it easier for the bad guys to well, be bad. But I’m realistic enough to know that the government can’t protect me from all bad things that can happen, and sometimes, the protection can have negative effects.
Either way: I’m completely against the bill.
Lou, I work in the casino industry, traveling around the country to different casinos in different states. Many states, in some cases with Indian casinos, each tribe, does background checks — including credit checks — before issuing a license. In some cases, we have to supply records going back 20 years. Has anyone been denied? I work with one guy who can’t get a license in South Dakota because of one, minor issue on his credit record from over 10 years ago, although everywhere else he’s ok. We have people we’d like to hire, just out of school, who have no credit history. There are some jurisdictions which, I’m told, wouldn’t license them because there’s nothing to check.
I assume you don’t own a house. Or do you make so much you can pay for one with cash? BTW, if you pay for anything with more than $10,000 in cash, deposit more than $10K in a bank, etc, the IRS is notified. Money laundering laws. Casinos spend a lot of time dealing with this stuff.
#18 – Lou
You state “As a libertarian, I believe in responsibility, both individual and corporate.”
If you believe in taking personal responsibility then you need to work to derail this legislation because if it passes it removes one opportunity for individuals to take responsibility for their credit and their good name.
Then you state “As to posting my SS#, I won’t do it, cause I don’t want to make it easier for the bad guys to well, be bad.”
We’ve established you feel ID theft is “bad” and you don’t want to make it easy for the bad guy. Another reason to work to defeat this legislation. Some people in Washington,
are working to reverse credit freeze laws that are already enacted and working in about 17 states which I assure you will make it easier for the bad guy.
Thank you for helping to build the argument against this legislation.
Remember the VA identity theft from a onth ago? Well a judge just banned them from telling veterans that they will be doing credit monitoring for free.