For years, consumers have received preapproved credit offers with required notices and opt-out telephone numbers buried in fine print along with other mandatory legal notices. We support the Commission’s proposal to provide a layered notice. The proposal calls for a “short notice” on the principal promotional document. The short notice includes the most important information, including opt-out telephone number, with direction to a “long notice” located elsewhere in the solicitation.
The Privacy Rights Clearinghouse and the Identity Theft Resource Center urge you to oppose H.R. 2622 as written because it preempts many state consumer protection laws while failing to prevent credit bureau mistakes or stop identity theft.
This memo provides a section-by-section analysis of H.R. 2622, which was reported out of the House Financial Services Committee on July 25th. Although the bill takes some steps to prevent identity theft, improve accuracy and protect medical privacy, it fails to offer meaningful solutions to the most important problems that were identified in Senate and House hearings, especially given that the quid pro quo for these measures is permanent and perhaps expanded preemption of state laws.
The only credit reporting bureau to offer free credit reports to consumers will halt this practice March 1, 1997.
Experian, formerly known as TRW, has been providing free credit reports since 1992. It had expected the other two major credit bureaus, Equifax and Trans Union, to follow suit, but that has not happened. Further, consumer advocates had pushed Congress to mandate free credit reports when it was considering amendments to the Fair Credit Reporting Act in 1996. But instead, legislators capped the price at $8 per report.
Recent amendments to the Fair Credit Reporting Act, signed into law on September 30, 1996, directed the Board of Governors of the Federal Reserve Board to conduct a study on the availability of sensitive identification information about consumers and the possible use of such information for financial fraud.
The comments provided herein by the Privacy Rights Clearinghouse focus on "credit header" information as well as the widespread availability of Social Security numbers.
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