Would you give up some privacy for a freebie? That's what H.R. 2622, passed yesterday by a vote of 392-30, is asking consumers to do.
The bill, which will go to Congress at the end of this month, would reauthorize the provisions in the Fair Credit Reporting Act passed in 1996, which will expire at the end of 2003.
The good: a free annual credit report to all consumers. Right now only Colorado, Georgia, Maryland, Massachusetts, New Jersey, and Vermont give their constituents free annual credit reports. The bill also contains a "one-call-for-all" feature, which will require credit bureaus to share consumer calls on identity theft and fraud alert requests.
The bad: The bill would override some tougher privacy requirements passed by states such as California, where a new state law prohibits banks, insurance companies, and others from sharing their customers' personal information.
The ugly: Less privacy means more inquiring marketing minds -- increasing the chance for fraud by unscrupulous employees who have access to your personal data. Plus, the act does little to harshly punish those companies whose databases are compromised.
It's time to mobilize to protect your financial privacy. Consumer's Union makes it easy at www.financialprivacynow.com. Speak up, Fools.
