Wednesday, June 29, 2005

Cry Me a Money River


Equifax's chief executive says he opposes federal legislation that lets consumers obtain a free copy of their credit report to help them monitor financial accounts for fraudulent activity.

CEO Thomas Chapman called the legislation unconstitutional and un-American because it cuts into profits that Equifax and two rival credit reporting agencies -- Experian and TransUnion -- earn from selling credit reports and monitoring services. Equifax maintains credit data on 220 million Americans. The company earned $1.27 billion in revenue last year.

I’m not quite sure where to begin with this, but…

Here’s the thing, the credit fraud problem EXISTS because you have the right to earn money. There are 3 major credit companies who grade consumers on how good or bad a credit risk they are. Equifax is one.

Now credit would be much of a one making enterprise if every company out there wasn’t hell bent to get you to spend as much money as possible. Even beyond what you should. So they have profited off this consumption monster in the American buyer and now that criminals are getting more astute as beating the system – they are taking the “higher ground” that “we are a corporation, not a charity.” All companies have to make certain allowances to keep their product safe – think of car companies with seat belts and air bags.

Amazingly, the biggest thing this CEO is missing that that they have a whole new opportunity for MORE MONEY. Try to follow me: you GIVE AWAY the annual free credit check, THEN you sell (1) fraud insurance and (2) a monitoring service that alerts you to any new or odd activity.

This is nothing more than state mandated advertising. You should be smarter than to complain about it.

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