Credit reporting under Hill’s fire

Senators questioning Equifax’s former chief on Wednesday attacked the business model of the credit-reporting industry, asking why consumers shouldn’t have power over the data that the companies collect on them.

The Capitol Hill hearing, one of a series this week, was as much about the control consumers have over their personal data as it was about the Equifax hack.

Senators questioning former Equifax CEO Richard Smith asked whether a large overhaul is needed for both pri- vate sector and government activities.

“Massive data collection is being undertaken across this country,” said Banking Committee Chairman Sen. Michael Crapo (R-Idaho) during Wednesday’s hearing before his panel. He added that Congress needs to take action with personal identification being collected by government, the private sector and others.

Speaking about the big credit-reporting companies — which along with Equifax include Experian and TransUnion — senators repeatedly raised the following point: Consumers don’t choose to share their data with these firms, but much of their financial lives, including whether they can get approved for loans or rent an apartment, depends on the data the companies have and then sell to lenders and other companies.

Although Equifax has been the main focus of attention since disclosing its massive breach in early September, the credit-reporting industry has feared the breach will lead to more regulatory oversight.