WASHINGTON–Sen. Chuck Schumer (D-NY) has asked the three major credit agencies, Equifax, Experian and Transunion, to establish voluntarily credit inquiry alerts that would immediately notify consumers when their credit records were requested.
Noting that the requests typically occur when new accounts are opened, Schumer wants consumers informed when any credit request is made, in light of data breaches that have taken place. Schumer said such instant alerts would give the consumer a chance to freeze credit records to halt fraudulent activity.
"Individuals know when they have authorized a query of their credit file, for example when they apply for a new loan or to rent an apartment," Schumer wrote in a letter to the three companies. "Therefore, they will also know if a query of their file is not authorized, and therefore a likely sign of criminal activity. Such notification will allow a consumer to freeze his credit and put a halt to the problematic behavior before it is too late.”
Schumer also told the three credit agencies that if they didn't comply he would work with regulators at the CFPB or pursue federal legislation if necessary.