Fallout from the Equifax breach will inevitably involve lawsuits, government investigations, and massive amounts of bad press. All major corporations exist to make as much money as possible while spending as little as they can get away with. Equifax is no exception, despite the trust that people once had in them. All of the actions Equifax’s leadership have taken so far exhibit that they are trying to minimize liability for the company and, of course, themselves personally. They will not knowingly make matters worse unless they are legally required to do so because profit trumps everything else in this world.
As others have explained, most of Equifax’s paying customers are the lenders who rely on their services. They are the company’s bread and butter, not the people seeking credit (consumers). The average American’s dealings with Equifax are probably limited to viewing their annual free credit reports, disputes, freezes, and maybe credit monitoring (now supposedly free). People who have never even heard of Equifax could be adversely affected simply because they have a Social Security number. We never had any say in whether the big three credit services could have our information. This breach is unlike any other I can think of because were only made vulnerable because we were forced to have our personal information in their system. Those who can prove they’ve actually been harmed by this breach due to Equifax’s negligence might have a case, but the average person who cares enough to fill out an online form will most likely become a member of the most massive class-action lawsuit in history, and after years of waiting get enough from the settlement to buy a stick of gum.
Equifax isn’t going to contact everyone that could possibly have their identity stolen in the future due to this data breach. They aren’t required to by law or even expected to by anyone in government, and the benefits far outweigh the costs to the company. Even with all of the bad press, the average person isn’t going to really care unless something noticeable happens to them or someone they know. People used to at least balance their checkbooks, but not anymore. There are much faster ways to pay, and far easier ways to keep track of one’s bank account. The average person probably doesn’t even read their bank statements or billing notices more than a few times a year because companies want everyone to go opt into auto bill pay and go entirely paperless. They sell it as convenient for customers and great for the environment, but really it’s to benefit their bottom line. The less people pay attention, the easier it is to rip them off without them knowing. If Equifax goes out of its way to inform and educated everyone in their system, they will have to contend with millions of additional people who otherwise wouldn’t have made a sound. That’s millions of more unhappy people generating more bad publicity. They may contact government leaders to demand change to the existing laws, and make it more likely that the government actually does something. They may read up on who regulates the industry and familiarize themselves with law, and then suddenly Equifax will have millions of more people who know how to hit them effectively breathing down their back. Furthermore, some of these people may initiate or join lawsuits, which Equifax wouldn’t want.
I’ve read recently that checking the Equifax site on whether one may have been affected gives inconsistent results. A person can check at 5 p.m. and be told they are probably affected, then check an hour later and be told they don’t appear to be impacted. They can go on the site using their home connection and get one result, and then check with their cellular connection and get another. Some argue that it’s totally random and meaningless, and it’s just there for show. I wouldn’t be surprised at all considering what I’ve seen thus far from Equifax.
Equifax offers a free year of credit monitoring through their own subsidiary (rather than a third-party), but good luck actually creating a free account. I signed up well over a week ago, was told they’d send me an email with a link within a few days to complete the process, but that e-mail never came. This is ridiculous considering the fact that the entire process could easily be automated and take mere seconds to complete, but I think it’s meant to be frustrating so people will not finish creating an account. That elusive e-mail may come someday, but I wouldn’t be surprised if it never does.
I decided after a week to phone the company’s call center to ask what’s going on, but they would not tell me anything that I didn’t already know; and they said there was nothing that they could do for me on their end. They suggesting that I sign up for their free credit monitoring, but the reason I called was because I already had. Then they said I should read the FAQ, but that’s where I found their phone number. Finally, they said to check my junk folder, but my e-mail service’s junk mail folder actually filters junk mail, so that’s almost never been an issue for me. Based on what I’ve read from other consumers, a lot of people are experiencing the same exact issues.
A year of free credit monitoring is standard procedure after a breach, but Equifax shouldn’t use its own subsidiary to provide the service. I’m sure it’s incredibly cheap and convenient for a credit company to monitor credit reports using its own service, but few companies so blatantly do something like this. Many people won’t even attempt to sign up because they have no trust or faith in Equifax. So if they want to have their credit monitored now, they will most likely have to shell out their own money for it because Equifax will not cover the minuscule fees for a year. It seems that Equifax wants to look like they are helping consumers, but it seems to be more of a public relations stunt. They obviously don’t want to tax their own resources to provide services provided by their own company to help people deal with this breach, but of course they announce their free credit monitoring offering loudly so they can reap all the benefits anyway.
In my opinion, Equifax should cease to exist after this, and it should never come back. Let’s remember this the way we remember ENRON. We should become familiar with all Equifax’s executives, and pressure all major corporations to never hire them again. Don’t feel too sorry for them, as they can still do a podcast or clerk a mini market in a small town. This is a land of second chances after all. All of Equifax’s assets should be seized and liquidated, with the proceeds going to victims. The government can do their normal investigations and hearings, but that’s all a big show to make politicians look like they really care and are doing what they were elected (or appointed) to do. If company executives are found guilty of insider trading, let them go to prison for lengthy terms with the likes of Bernie Madoff and Charles Manson, not just some country club correctional facility for six months.
The reason I don’t really deal with lenders is because I don’t have to, but most people have no other quick way to get money in case of an emergency. Putting so much emphasis on FICO scores is like choosing who gets to go to a top university based on SAT scores and high school GPA. People know how to manipulate their FICO scores so that they will not only be approved for anything they desire, but also receive the best rates and terms. Some people get ridiculous rates and fees. Many even have to secure their full credit line just so they can have a credit card to hopefully build up their FICO scores. It’s common knowledge that a lot of people have low FICO scores because of medical emergencies, unexpected job loss, and unmanageable student loans, not because they are lifelong degenerates. Universities understand that things like the SAT can easily be gamed (wealthy kids have access to workshops and tutors who do nothing but prepare them for the SAT) and grades are always inflated by schools because it makes them look good, so they consider many other factors as well. If these all-important numbers are not based on meaningful data, the world should not revolve around them.
Credit enables regular people to own property, which is extremely important. There is no better investment for the average American than a home. In some parts of the world, you aren’t even legally considered a citizen unless you can own property. Protections provided by law tend to be afforded only to citizens. You have no right to vote. You have no voice in government. Sometimes people can actually own you because you are just an object in the eye’s of those governments. This sounds absurd until you read a little US history. Last week, I read arguments by US citizens that even those who don’t actually own property (not just those who can’t) should not have the right to vote in our elections. In other words, not owning property should put people on the same level as non-citizens and convicted felons.
