As Senate examines credit bureaus, NAFCU stresses need for data security

Ahead of today’s Senate Banking Committee hearing to examine credit bureaus and the Fair Credit Reporting Act (FCRA), NAFCU’s Carrie Hunt wrote in support of “a strong, robust and secure credit bureau system.” However, in the wake of the data breach at Equifax, Hunt stressed that the credit bureaus should be examined for data security compliance and held accountable when negligent.

Hunt, NAFCU’s executive vice president of government affairs and general counsel, sent the letter to Senate Banking Committee Chairman Mike Crapo, R-Idaho, and Ranking Member Sherrod Brown, D-Ohio. Today’s hearing is slated to begin at 10 a.m. Eastern.

In the letter, Hunt noted that credit unions rely on the credit bureaus’ data when assessing lending risk, managing portfolios, detecting fraud and acquiring and growing relationships with members. Unfortunately, when a data breach occurs, Hunt wrote, it’s often consumers and their financial institution that must recuperate fraud-related losses.

 

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