FTC Warns Data Brokers of Possible FCRA Violations
The Federal Trade Commission has issued letters to 10 data brokers warning that they may be in violation of the Fair Credit Reporting Act. The action by the FTC followed a sting by FTC staff members who posed as individuals or businesses seeking information on consumers.
The pretext resulted in letters being sent to the ten brokers as reported in a news
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Larry Sabbath
NCISS Legislative Advocat |
release issued today.
The ten companies receiving the warning letters from the FTC include:
- Two companies that appeared to offer "pre-screened" lists of consumers for use in making firm offers of credit: ConsumerBase and one additional company;
The FTC said this investigation is part of an international sweep for the Global
Privacy Enforcement Network (GPEN). In its news release, the Commission described the international group as follows:
"The network connects privacy enforcement authorities to promote and support cooperation in cross-border enforcement of laws protecting privacy. Several GPEN members from countries around the world are taking steps this week to ensure that companies meet their obligations related to the privacy of consumers' personal information."
Also, the Senate Subcommittee on Consumer Protection, Product Safety and Insurance held a hearing today questioning the accuracy of credit reports issued by the national credit bureaus. Witnesses included a consumer who had been unable to correct her credit report which listed debts of another individual. Among other witnesses was Stuart Pratt of the Consumer Data Industry Association who said that the association had established a working group to respond to concerns about accuracy.
Congressional attention to the accuracy of credit reports may provide additional ammunition for advocates of limiting the collection and use of consumer data.
NCISS will continue to keep members apprised of actions in both Congress and the agencies that could affect members.
