New law lets companies not tell you if data stolen

By | June 20, 2006

That lost Veterans Administration data may end up hurting you, even if you´re not a vet. Last month, the VA announced an employee had lost a computer loaded with the identities of 26 million current and former GIs. The dramatic incident has inspired outrage from lawmakers in Washington D.C. Unfortunately, that outrage has taken form in legislation that could make things worse for all of us.

How? It establishes nationwide standards for data security that actually eliminate some consumer rights granted at the state level.

If the Financial Data Protection Act, already passed by the House Financial Services Committee, is approved by the full House later this month, millions of consumers could lose the right to freeze their credit reports. And all those notices consumers now receive after a company loses personal data? Many of those would no longer be required.Read Full Story

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