Credit Industry Opposes Anti-ID Theft Method

athloi alerts us to an opinion piece running in USA Today on the backlash against an effective tool to fight identity theft. The big three credit bureaus don't like the numerous state laws that have been passed requiring them to give consumers a simple way to freeze their credit. Watch for a push at the federal level to get a watered-down statute that pre-empts state laws. "Lawmakers across the country — pushed by consumer advocacy groups — ... have passed laws that allow consumers to freeze their credit, a surefire way to prevent thieves from opening new accounts or obtaining a mortgage in a consumer's name. Under a freeze, a consumer cuts off all access to his credit report and score, even his own. All lenders require that information, so no one can borrow money in the consumer's name until he or she lifts the freeze. It's simple, and it works. So, of course, it's under threat from the Consumer Data Industry Association, which represents the Big Three credit bureaus. They make millions gathering and selling consumer data. Freezes cut into that business."

Comments

Debt free is the way to be.

[Shambly]

I would be happy to have a credit freeze on all my accounts. Borrowing money is a horrible system. It works for starting a business or a mortage on a house but all the little scams like car loans and furniture store and such only encourage people to live beyond their means. Paying cash for those kinds of things is so much cheaper. Debt is a form of slavery, your no longer working for money your working so they won't take your things away. It makes it so the credit card company owns you. Sure you can be good with a credit card but they do everything in their power to make you fall in that trap so that they can milk as much money from you as possible.

Re:Credit Freeze = Relief

[Shakrai]

Does anyone really think it is ok to just allow lenders to defame the name and credit history of anyone unlucky enough to have their SSN stolen?

More to the point, our credit heavy soceity has allowed less then honest companies to blackmail consumers that have legitimate business disputes by threatening to sour your credit report. In the old days if you had an honest dispute with a company and refused to pay them they could sue you and both sides would get their day in court. Now they can just insert an item into your credit file, wait until you are denied employment/that mortgage/security clearance/etc/etc and know that you will pay up because they basically have you by the balls.

No due process of law and the burden of proof is on the consumer to prove that the derogatory information is false -- not on the company to prove that it's true.