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[ThatHawaiiGuy]

Retooled credit act is near

[Should say: Yet more loss of privacy is near...]

Consumers would get free reports, but states would be prevented from setting privacy rules.
By Jesse J. Holland
Associated Press

WASHINGTON - Americans could gain a right to free e-mailed credit reports under legislation moving through the Senate yesterday, but at the same time, the companies they do business with would become exempt from tough state consumer-privacy laws.

[What a great trade!!! Yippeeeee!!!]

Senators are expected this week to reauthorize and make permanent the Fair Credit Reporting Act, which created a national credit-reporting standard to make it easier for people to get credit cards, loans and mortgages.

The legislation also would prevent states from setting their own rules on how businesses use, share and report data on consumers.

Businesses say that keeps finance flowing by keeping them from having to deal with 50 different privacy laws. Opponents say states respond more quickly than the federal government to changing conditions, such as identity theft, and should be able to offer strong protections.

An amendment, led by Democratic Sens. Barbara Boxer and Dianne Feinstein, that would preserve one such law in California failed on a 70-24 vote.

Reauthorizing the law, which expires at year's end, is a congressional priority. Members of both parties agree that the current national credit-reporting system helps the economy by offering quick credit to consumers.

"This bill reflects a careful balance between ensuring the efficient operation of our markets and protecting the rights of consumers," said Sen. Richard Shelby (R., Ala.), chairman of the Senate Banking, Housing and Urban Affairs Committee.

The Bush administration announced its support for the legislation yesterday.

"The bill strengthens the national credit-reporting system that has proven critical to the resilience of consumer spending and the overall economy," the White House said in a statement. "In addition, the legislation incorporates many of the consumer protections proposed by the administration, including new tools to improve the accuracy of credit information and help fight identity theft."

House and Senate leaders still have to settle their differences before a final congressional vote.


http://www.philly.com/mld/inquirer/2003/11/05/business/7184082.htm