For those not familiar with the case, Equifax exposed 147 million people's credit records in a breach in September, 2017. The U.S. Federal Trade Commission announced the settlement of a consumer...
For those not familiar with the case, Equifax exposed 147 million people's credit records in a breach in September, 2017.
The U.S. Federal Trade Commission announced the settlement of a consumer class action lawsuit in September of this year.
I don't know anything about how credit reporting is handled outside the U.S., but this process is one of the earliest and most widespread examples of personal data aggregation by private companies.
The accumulated information may include sensitive records stretching nearly to one's birth. The records and associated credit scores are used for everything from employment background checks to apartment leases to criminal cases to healthcare eligibility. There's almost no effective means of correcting egregious errors. This type of record-keeping is basically so intrusive that it's inspired China's proposed panopticon social credit system.
The records are handled by an oligopoly of three private companies, Equifax, Experian, and TransUnion. Under U.S. law, consumers are entitled to one free report from each service annually. Additional checks usually cost $15 - $20, and the system spawned a cottage industry of credit monitoring agencies (LifeLock, etc.). The credit reporting agencies are now selling their own monitoring services (e.g. Experian Identity Guard), essentially charging customers for protection from the aggregators' own lax security.
The FTC has no power to fine the reporting agencies or revoke their charters. As a result, though Equifax was grossly negligent in handling millions of people's sensitive data, a private class action lawsuit had to be filed.
The $680 million settlement seems large as a number, but represents less than $10 per potential claimant even before the award of legal fees.
As an alternative, Equifax offered up to 10 years of free credit monitoring, which still doesn't protect against many of the possible abuses of the data. Fewer than 5 million people were well-informed enough to accept this more valuable option as part of the settlement; the remaining class members may get a dollar or two.
So private companies took over the job of the government, are grossly incompetent but still successful because there's no competition and basically no law to hold them back from profiting from...
So private companies took over the job of the government, are grossly incompetent but still successful because there's no competition and basically no law to hold them back from profiting from their own gross incompetence. The government of course is not going to do anythin about it (in particular this government) because of course that would be government overreach.
Sounds like a very American solution to me.
Besides that, aren't class action lawsuits always for the lawyers?
How is free credit monitoring more valuable when almost everyone has it as a result of one breach or another already? It's worth less than even $10 to me, honestly.
As an alternative, Equifax offered up to 10 years of free credit monitoring, which still doesn't protect against many of the possible abuses of the data. Fewer than 5 million people were well-informed enough to accept this more valuable option as part of the settlement; the remaining class members may get a dollar or two.
How is free credit monitoring more valuable when almost everyone has it as a result of one breach or another already? It's worth less than even $10 to me, honestly.
Since most credit monitoring services charge something like $10/month, it's superficially more valuable to consumers than paying for it themselves, and has a longer duration. I'd love to see the...
Since most credit monitoring services charge something like $10/month, it's superficially more valuable to consumers than paying for it themselves, and has a longer duration.
I'd love to see the whole system abolished, maybe replaced with personal crypto stores with one-time update and read keys, fully controllable by the owner.
For those not familiar with the case, Equifax exposed 147 million people's credit records in a breach in September, 2017.
The U.S. Federal Trade Commission announced the settlement of a consumer class action lawsuit in September of this year.
I don't know anything about how credit reporting is handled outside the U.S., but this process is one of the earliest and most widespread examples of personal data aggregation by private companies.
The accumulated information may include sensitive records stretching nearly to one's birth. The records and associated credit scores are used for everything from employment background checks to apartment leases to criminal cases to healthcare eligibility. There's almost no effective means of correcting egregious errors. This type of record-keeping is basically so intrusive that it's inspired China's proposed panopticon social credit system.
The records are handled by an oligopoly of three private companies, Equifax, Experian, and TransUnion. Under U.S. law, consumers are entitled to one free report from each service annually. Additional checks usually cost $15 - $20, and the system spawned a cottage industry of credit monitoring agencies (LifeLock, etc.). The credit reporting agencies are now selling their own monitoring services (e.g. Experian Identity Guard), essentially charging customers for protection from the aggregators' own lax security.
The FTC has no power to fine the reporting agencies or revoke their charters. As a result, though Equifax was grossly negligent in handling millions of people's sensitive data, a private class action lawsuit had to be filed.
The $680 million settlement seems large as a number, but represents less than $10 per potential claimant even before the award of legal fees.
As an alternative, Equifax offered up to 10 years of free credit monitoring, which still doesn't protect against many of the possible abuses of the data. Fewer than 5 million people were well-informed enough to accept this more valuable option as part of the settlement; the remaining class members may get a dollar or two.
So private companies took over the job of the government, are grossly incompetent but still successful because there's no competition and basically no law to hold them back from profiting from their own gross incompetence. The government of course is not going to do anythin about it (in particular this government) because of course that would be government overreach.
Sounds like a very American solution to me.
Besides that, aren't class action lawsuits always for the lawyers?
Seems something like the Insurance industry might attempt.
How is free credit monitoring more valuable when almost everyone has it as a result of one breach or another already? It's worth less than even $10 to me, honestly.
Since most credit monitoring services charge something like $10/month, it's superficially more valuable to consumers than paying for it themselves, and has a longer duration.
I'd love to see the whole system abolished, maybe replaced with personal crypto stores with one-time update and read keys, fully controllable by the owner.