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AFR Statement: Equifax Earnings Highlight Broken Model of Credit Reporting

Submitted by on November 10, 2017 – 2:51 pm
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FOR IMMEDIATE RELEASE

Nov. 10, 2017

CONTACT:
Carter Dougherty
carter@ourfinancialsecurity.org
(202) 251-6700

 

STATEMENT ON THE QUARTERLY EARNINGS ANNOUNCEMENT BY EQUIFAX

This morning, executives at Equifax detailed its quarterly earnings announcement in a call with investors.

Based on sales Equifax reported its second best quarter ever. Sales rose and were $835 million, or just 2% below what the company projected in late July, days before it received the initial indication that it had been hacked. The company faced costs to dealing with the breach, but this makes it clear just how little impact the breach — and consumers widespread worry and anger — had on its business.

“Equifax’s negligence put half of the American population at serious risk of identity theft, and we will be looking over our shoulders for the rest of our lives,” said Chi Chi Wu, staff attorney at the National Consumer Law Center. “Yet Equifax’s business model continues to churn out big profits.”

“Today’s earnings announcement underlines once more that consumers aren’t the customer for companies like Equifax, consumers are the product,” said Lisa Donner, executive director of Americans for Financial Reform.

The hack may even have been a boon to the bottom line of credit reporting companies, which charge consumers to freeze their credit report or monitor their credit, even though consumers are seeking these protections due to this massive breach.

“Incredibly, the hack may even have helped the bottom line of credit reporting companies, which charge most consumers to freeze their credit report or monitor their credit, even though consumers are seeking these protections due to this massive breach,” said Ed Mierzwinski, consumer program director at U.S. PIRG. “We urge Congress to enact a law providing for free credit freezes for all Americans. If they don’t act quickly, the state PIRGs are urging the states to act.”

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