Full letter:
https://consumersunion.org/wp-content/uploads/2017/09/CU-letter-to-Equifax-9.14.17.pdf
What Equifax Should Do
1. Pay for credit freezes. “Consumers who wish to freeze their credit in response to Equifax’s announced breach still must pay to freeze their records with other major credit bureaus in order to make the freeze effective. We urge Equifax to pay any fees associated with credit freezes at other credit bureaus so that consumers can prevent their data from being improperly used in connection with other credit bureau records,” Consumers Union said.
2. Extend credit monitoring for affected consumers. Consumers Union points out that Equifax has offered affected consumers “only one year of credit monitoring and, following public outcry, a limited and narrow opportunity to obtain a free credit freeze.” Because risks to consumers due to this breach are not limited to one year, Consumers Union demands that "Equifax should extend credit monitoring indefinitely for all consumes potentially affected by the breach."
3. Provide more detailed information about the security incident. Consumers Union says the company provided “inadequate and unreliable information” about which consumers were victimized and what data was compromised, limiting consumers’ ability to take steps to protect themselves. "To prevent further harm to consumers seeking to protect themselves, Equifax must upgrade its tool to provide more detailed information about precisely what types of data were breached for each affected consumer," Consumers Union said.
4. Remove all mandatory arbitration clauses. Equifax has been criticized for forcing victims visiting its site to waive their right to sue the company. Equifax says that it has corrected this issue, but Consumers Union says the remedy is confusing and insufficient. “Equifax has repeatedly changed its story about whether and how the mandatory arbitration clause impacts consumers,” the letter said.
For example, after Equifax said its arbitration clause was moot, Consumers Union notes that another—broader—arbitration clause remained in effect. According to Consumers Union, Equifax is now saying that none of these clauses will apply to consumers harmed by the data breach or who sign up for credit monitoring services. However, the clauses remain in print and, Consumers Union says, “it’s unclear whether or how they could still be used to prevent consumers from having their day in court.”
5. Commit to hiring and training sufficient staff to review and process disputes promptly. “Given the enormity of the exposure, Equifax needs to be prepared for a deluge of problems and must have sufficient resources on hand to resolve these problems quickly and effectively,” Consumers Union said. “The company should not wait for these problems to pile up and then address a mounting backlog.”
6. Set aside a fund to compensate consumers whose data has been exposed. “Equifax has an obligation to American consumers to compensate them for the injury they may incur for years to come. Accordingly, Equifax should create a substantial and dedicated reserve account to compensate consumers affected by this breach,” Consumers Union wrote.
7. Investigate allegations of insider trading and hold wrongdoers accountable. “The company does not appear to have fully investigated—and certainly has not explained to the public—the sales of stock by three executives just prior to public announcement of the breach,” Consumers Union said. "The timing of these sales—a handful of days after the initial uncovering of a massive security incident—raises major red flags. However, Equifax’s initial reaction was disappointing and troubling: first, its press statement sought to minimize the scope of $2 million in sales as 'small.' Second, rather than stating an intention to investigate the issue, Equifax casually and summarily dismissed the allegation of trading on nonpublic information with no apparent inquiry at all—much less a rigorous one."
Consumers Union says that Equifax should immediately act to preserve all documents and communications of the executives in question, and commit to an independent investigation of the possibility of insider trading.
What's Next
The letter concludes with an acknowledgment of the magnitude of the fast-moving situation, but stresses that “the consumers injured by this breach should be the company’s first and foremost priority, and Equifax should commit to their protection and to making them whole.”
The Equifax CEO is scheduled to testify before the House Energy and Commerce committee on October 3. That committee has jurisdiction over the Federal Trade Commission and Consumer Financial Protection Bureau, the agencies responsible for regulating data security.
On Thursday the FTC announced that it had launched an investigation into the Equifax breach.
"The FTC typically does not comment on ongoing investigations. However, in light of the intense public interest and the potential impact of this matter, I can confirm that FTC staff is investigating the Equifax data breach," Peter Kaplan, the FTC’s Acting Director of Public Affairs, told Consumer Reports in an email.
Also, Connecticut Attorney General George Jepsen has announced that his office has initiated a formal multi-state investigation into the breach.