Proactive Investors - Run By Investors For Investors

Equifax in the red as US senator Elizabeth Warren cracks down on company with new bill

US senator Elizabeth Warren has started an investigation in to the data breach at Equifax
Equifax
Equifax suffered a massive data breach last week

Equifax Inc. (NYSE:EFX) shares continued to slide after US senator Elizabeth Warren said she will introduce legislation aimed at cracking down on the company following a massive data breach last week.

The legislation will require Equifax and its competitors to freeze consumers’ credit reports on the request of consumers free of charge and restrict their ability to profit from data during the freeze.  A credit freeze restricts access to an individual’s credit report, which can prevent account fraud.

Warren said the bill, to be introduced today, would give consumers more control over the data credit companies collect.

She also said she has kicked off an investigation into Equifax following the cyberbreach, which saw information stolen from hundreds of Americans including social security numbers, drivers license information and birth dates.

Warren also wrote letters to Equifax and its rival credit monitoring agencies TransUnion (TRU.N) and Experian (EXPN.L), federal regulators, and the Government Accountability Office for information to see if new federal legislation was needed to protect consumers.

“I am troubled by this attack - described as ‘one of the largest risks to personally sensitive information in recent years’ - and by the fact that it represents the third recent instance of a data breach of Equifax or its subsidiaries that has endangered American’s personal information,” she wrote in a letter to Equifax chairman and chief executive Richard Smith.

Equifax creates individual credit reports used by lenders to assess the creditworthiness of consumers. 

Shares fell 0.68% to US$96.00 each in US pre-market trading. 

View full EFX profile View Profile

Equifax Timeline

Related Articles

Stobart
May 31 2019
"Stobart Group has a clear focus on developing infrastructure assets in the aviation and energy sectors," chief executive Warwick Brady said.
Interviewees
August 07 2018
The offer values Nash at £98.7mln and DBAY already controls 26.1% of Harvey Nash shares
drone
March 29 2019
RMS is taking action to address the issues at Geocurve and looks forward to “renewed growth in sales to new clients” while it remains "excited by the opportunities at GyroMetric"

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use