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Sen. Schumer calls on FTC to investigate credit reporting trend

Nov 11, 2011 Philip Burgess

U.S. Senator from New York Charles Schumer called on the Federal Trade Commission to investigate a recent wave of bureau reporting and consumer credit disclosure incidents. According to The Wall Street Journal, the Democratic Senator is requesting the FTC investigate the proliferation of new types of scores being compiled by credit agencies and sold to third parties. At issue is the disclosure of personal information such as medication use and personal income. Schumer is also asking the FTC to examine credit agencies' decision to withhold the information from consumers and not disclose it as they are required to with consumer credit scores. "Consumers have a right to know exactly what personal information is being collected on them, attached to them and sold to third parties, particularly when it can impact the price they pay for services, insurance or ability to borrow," Schumer said in a statement. "Medication use and personal income are highly sensitive pieces of personal information." Schumer's office has cited Fair Isaac Corp. as an example, but the agency has responded by claiming it is not a credit bureau, and therefore not subject to the Fair Credit Reporting Act, adding that its medication adherence score helps practitioners identify patient compliance, the WSJ reports.