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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsLittle-Known Database Sells Millions Of Americans’ Salary Information To Debt Collectors
The credit reporting agency Equifax has created a little-known database that uses employment records, often given freely by human resources departments around the country, to track detailed information on millions of Americans pay history, in effect leading employers to help debt collectors extract money from their workforce.
An Equifax subsidiary called The Work Number, according to an investigative report at MSNBC, is often used by larger companies to automate employee work information calls, giving the firm access to human resources data.
Using that business model they obtain as much employment-related information possible and sell it to debt collectors and other financial companies, among various ways of monetizing that data. Up to one-third of all Americans are in the database, MSNBC noted.
These kinds of companies operate in a legal gray area, with very few regulations governing how the information they obtain is ultimately used. Equifax told MSNBC that it requires companies have legitimate reason to access the information, like if a consumer has applied for credit, all ostensibly in compliance with the Fair Credit Reporting Act.
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http://www.rawstory.com/rs/2013/01/30/little-known-database-sells-millions-of-americans-salary-information-to-debt-collectors/
limpyhobbler
(8,244 posts)dipsydoodle
(42,239 posts)that the information is used mainly to determine ability to pay on a credit application in relation to existing credit commitments including credit card balances and default record if any.
limpyhobbler
(8,244 posts)The government should be stepping in to protect people from this kind of corporate abuse.
dipsydoodle
(42,239 posts)prevents employers from doing that in the UK and as far as I'm aware most if not all of the EU too.
limpyhobbler
(8,244 posts)I'm pretty sure we won't ever get it. But hey we can dream.