Jump to content

Congress seeks to weaken consumer Anti-Fraud protections!


Recommended Posts

What are our elected officilas thinking? :roll: Time for everyone to send a nasty gram to their senator and congressman:


As Identity Theft Risk to Millions of Vets Grows, Congress Prepares to Weaken Consumer Anti-Fraud Protections :shock:

Tuesday June 13, 2:36 pm ET

House Bill Would Pre-empt Strong State Standards, Limit Consumer Protection Options

WASHINGTON, June 13 /PRNewswire/ -- With almost daily reporting about new losses of personal information belonging to veterans, active duty troops and other federal employees, the House of Representatives is getting ready to consider H.R. 3997, a bill that would pre-empt strong state consumer protection standards, limit consumer protection options and protect the power of Credit Reporting Agencies (CRAs) over consumer information.

"Seventeen states have already passed legislation to allow approximately 130 million consumers greater control over their personal financial information, including the ability to 'freeze' and 'unfreeze' the ability of another party to issue credit in their name," said Scott Mitic, national expert on identity theft and CEO of TrustedID. "As it is currently written, H.R. 3997 would pre-empt those consumer rights with a weaker federal standard, putting millions of Americans potentially at greater risk of fraud resulting from identity theft."

H.R. 3997, the Financial Data Protection Act, includes several provisions that raise serious concerns about its impact on consumer credit protection:

* Pre-Emption of Strong State Standards -- Seventeen states like

California and New Jersey have already passed credit freeze laws to help

some or all of their consumers protect themselves against identity

theft. Five more states are considering such a move. But H.R. 3997

would create a federal standard that would actually weaken the

protections consumers in these states have by limiting their credit

protection options.

* Protections Limited To Those Already Victimized -- H.R. 3997 would limit

the use of credit freeze to those already victimized -- protecting their

credit after it has already been compromised! Tens of millions of other

consumers would be given no opportunity to protect themselves BEFORE

they become victims of fraud.

* Reactive Theft Countermeasures -- The Financial Data Protection Act

includes "free file monitoring" to reduce identity theft. But free file

monitoring only notifies a consumer AFTER financial damage has been

inflicted. Unlike credit freeze, which empowers consumers to control

access to their credit, free file monitoring does nothing to stop such

crimes before they occur.

* 20th Century Timing for a 21st Century Crime -- In an environment where

credit information can be stolen electronically and used fraudulently in

an instant, H.R. 3997 would require the use of certified mail for

consumer credit freeze requests and give the Credit Reporting Agencies

(CRAs) up to TWO WEEKS to act on those requests.

"With more Americans being threatened with identity theft, Congress should strengthen consumer protections rather than limit consumer options," said Omar Ahmad, Chief Technology Officer of TrustedID. "Unfortunately, as it is currently written, H.R. 3997 has the potential to undermine dozens of state laws and put more Americans at risk of identity theft."

TrustedID, Inc. (http://www.trustedid.com) is a provider of identity management and protection solutions for consumers. TrustedID was founded in 2005 with a mission: give individuals control over their personal information and who has access to that information. The company is based in Redwood City, California, and is led by a management team with experience in the consumer internet, security and financial services industries. For interviews on HR 3997, please contact Chad Kolton at 202-585-2902 or 202-378-3824 (cell).

Link to comment
Share on other sites

This topic is now closed to further replies.

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.