Americans’ private financial data is sold to debt collectors

Equifax maintains and profiteers off a vast database of financial information like salary records

Topics: credit reporting, equifax, Privacy, salary, debt collectors, ,

Americans' private financial data is sold to debt collectors (Credit: Shutterstock/ Mark Hayes)

One of the nation’s biggest credit reporting agencies is selling the private financial information of millions of Americans to debt collectors and other financial service companies. Equifax, which maintains a database with the salary and employment records of more than one-third of U.S. adults, is passing on this information to third parties without ever informing the individuals whose information is being distributed, NBC reported.

“It’s the biggest privacy breach in our time, and it’s legal and no one knows it’s going on,” Robert Mather, who runs a small employment background company named Pre-Employ.com told NBC. “It’s like a secret CIA,” he said.

NBC explains how Equifax legally obtains and passes on so much information presumed private:



How does Equifax obtain this sensitive and secret information? With the willing aid of thousands of U.S. businesses, including many of the Fortune 500. Government agencies — representing 85 percent of the federal civilian population, including workers at the Department of Defense, according to Equifax — and schools also work with The Work Number. Many of them let Equifax tap directly into their data so the credit bureau can always have the latest employment information. In fact, these organizations actually pay Equifax for the privilege of giving away their employees’ personal information.

Equifax turns around and sells some of this data to third parties, including debt collectors and other financial services companies.

Equifax declined to be interviewed, but in an emailed statement to NBCNews.com, it confirmed that it shares “employment data” with debt collectors and others, and said it does so in compliance with Fair Credit Reporting Act guidelines.

 

Natasha Lennard

Natasha Lennard is an assistant news editor at Salon, covering non-electoral politics, general news and rabble-rousing. Follow her on Twitter @natashalennard, email nlennard@salon.com.

More Related Stories

Featured Slide Shows

  • Share on Twitter
  • Share on Facebook
  • 1 of 11
  • Close
  • Fullscreen
  • Thumbnails
    Burger King Japan

    2014's fast food atrocities

    Burger King's black cheeseburger: Made with squid ink and bamboo charcoal, arguably a symbol of meat's destructive effect on the planet. Only available in Japan.

    Elite Daily/Twitter

    2014's fast food atrocities

    McDonald's Black Burger: Because the laws of competition say that once Burger King introduces a black cheeseburger, it's only a matter of time before McDonald's follows suit. You still don't have to eat it.

    Domino's

    2014's fast food atrocities

    Domino's Specialty Chicken: It's like regular pizza, except instead of a crust, there's fried chicken. The company's marketing officer calls it "one of the most creative, innovative menu items we have ever had” -- brain power put to good use.

    Arby's/Facebook

    2014's fast food atrocities

    Arby's Meat Mountain: The viral off-menu product containing eight different types of meat that, on second read, was probably engineered by Arby's all along. Horrific, regardless.

    KFC

    2014's fast food atrocities

    KFC'S ZINGER DOUBLE DOWN KING: A sandwich made by adding a burger patty to the infamous chicken-instead-of-buns creation can only be described using all caps. NO BUN ALL MEAT. Only available in South Korea.

    Taco Bell

    2014's fast food atrocities

    Taco Bell's Waffle Taco: It took two years for Taco Bell to develop this waffle folded in the shape of a taco, the stand-out star of its new breakfast menu.

    Michele Parente/Twitter

    2014's fast food atrocities

    Krispy Kreme Triple Cheeseburger: Only attendees at the San Diego County Fair were given the opportunity to taste the official version of this donut-hamburger-heart attack combo. The rest of America has reasonable odds of not dropping dead tomorrow.

    Taco Bell

    2014's fast food atrocities

    Taco Bell's Quesarito: A burrito wrapped in a quesadilla inside an enigma. Quarantined to one store in Oklahoma City.

    Pizzagamechangers.com

    2014's fast food atrocities

    Boston Pizza's Pizza Cake: The people's choice winner of a Canadian pizza chain's contest whose real aim, we'd imagine, is to prove that there's no such thing as "too far." Currently in development.

    7-Eleven

    2014's fast food atrocities

    7-Eleven's Doritos Loaded: "For something decadent and artificial by design," wrote one impassioned reviewer, "it only tasted of the latter."

  • Recent Slide Shows

Comments

0 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>