The “Financial Data and Security Act” (H.R. 3997), sponsored by Rep. Steve LaTourette (R-OH), is set to be voted on in the House of Representatives. The problem is that the bill could seriously undermine what some states are doing to try and solve the very real identity theft problem we are currently experiencing in the United States.
The bill will preempt existing state laws that allow consumers to “freeze” their credit and prevent further damage to their credit. It also preempts states from having any authority over the process of investigating data breeches, and would only require companies to notify their consumers of a breech after they have investigated it themselves.
States are passing more and more laws to give consumers greater protection and control over their credit, and if this Act becomes law – all consumers could pay the price. ■
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