House Bill Would Pre-empt Strong State Standards, Limit Consumer Protection Options
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:
"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."
Source: TrustedID news release
Posted: Wednesday, June 14, 2006 12:00:00 AM. Modified: Wednesday, June 28, 2006 3:25:53 PM.
317.875.5250 - Indianapolis | 202.628.1558 - Washington, D.C.