NADA Seeks to Limit Federal Credit-Freeze Efforts

Last week the House Financial Services Committee approved a bill (H.R. 3997) designed to provide a national uniform data security program and set breach notification requirements. The committee added a limited provision allowing identity-theft victims to freeze their credit files, which would prevent credit grantors from obtaining files until the victim lets the credit bureau lift the freeze. The committee’s bill would preempt state credit-freeze statutesãeven those state laws that allow all consumers, not just identity-theft victims, to freeze their credit. Earlier in the week, NADA told the committee it supports either postponement of any federal action on the issue or efforts to keep any national freeze standard limited to identity-theft victims. With a number of other committees working on similar bills in both the House and Senate, it is unclear whether legislation on this topic can be cleared in a shortened, election year.