Monday, July 24, 2006

Pryce Selling Out Consumers

Republican Rep. Deborah Pryce is a co-sponsor of a bill that, according to the New Standard, would make it more difficult for consumers to protect their credit from identity thieves.

Here is more from the article:

...Backed by the lucrative financial-services industry, the Financial Data Protection Act of 2005
would narrow the circumstances in which consumers could restrict their credit activity to prevent fraudulent borrowing, and it would undermine stronger state-based reporting rules for companies that hold and sell consumer data....

Companies that stand to gain from the legislation have spent a small fortune on campaign contributions and lobbying.

In the last two election cycles, finance and credit companies have donated more than $12.5 million to political campaigns, and in 2005 alone, the industry spent almost $30 million on lobbying, according to the Center for Responsive Politics, which tracks money’s influence on government.

Two of the Act’s four co-sponsors are on the industry’s top-ten recipient list for the House: Michael Castle (R–Delaware) took in a total of $116,616, and Dennis Moore (D–Kansas) got $67,729. Another co-sponsor, Deborah Pryce (R–Ohio), received $22,500 from the industry.

One of the most controversial provisions of the bill would make it much more difficult for consumers to "freeze" their credit, a process that enables consumers to make it nearly impossible for anyone – including the consumer him or herself – to open new credit cards without first going through extra security precautions...

I think this is called "checkbook legislation"---industries give a political contribution to get the legislation they want. Looks like the Pryce has gotten paid nicely by her friends in the finance and credit card companies. Now we get screwed.