Today, the House Financial Services Committee is holding a
hearing on Democrats’ attempt to socialize the credit reporting industry, which would jeopardize the privacy and security of consumer data, as well as politicize the allocation of credit. Instead of a disastrous government run credit reporting agency, we should be working to create more competition and give consumers greater choice.
Watch Republican Leader Patrick McHenry’s (NC-10) opening remarks here.
Read Republican Leader McHenry’s opening remarks as prepared for delivery:
“We can all agree that the credit reporting industry is in need of reform. While there are thousands of companies across the country that operate within the credit reporting system, there are only three nationwide credit reporting agencies.
“To me, that is code for oligopoly. That means there is less consumer choice and competition to provide the best product. Reforms are needed to improve this system for all participants.
“For example, we should be working together to eliminate the barriers to entry in this industry. We should be thinking through ways to encourage more companies to compete with the three Credit Reporting Agencies.
“But, instead of creating more competition in the private sector my colleagues go to the same playbook – a government run bureau based on anecdotal evidence and faulty ‘data’ such as slanted surveys. This is part of their broader goal to dismantle the financial system as we know it. If the idea of a government-run credit reporting agency isn’t bad enough, the Democrats want to house it at the Consumer Financial Protection Bureau.
“This would be disastrous.
“We should be promoting competition to create better opportunities for consumers. Not allowing a single government entity to run the credit reporting process for all Americans.
“We know that government run programs are the least effective entities to deliver services. Can you imagine the IRS, Post Office, or DMV compiling and maintaining your credit report? That is what this proposal would mean.
“Additionally, we know cyber-attacks are on the rise. Personal financial data is some of the most coveted information by criminals. Add this to the fact that Democrats consistently want consumers to use their full social security number to identify themselves.
“A massive new government-run database of consumers’ personal information would be a sitting duck for bad actors.
“Finally, a government run credit bureau raises privacy concerns. The government should not be the central repository for all financial data available on its citizens.
“As the great Gastonia, North Carolinian, Thomas Sowell, stated: 'It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.'
“It is a terrible idea to give the government the power to make credit allocation decisions, potentially based on political favorability. We’ve seen the IRS target conservative groups; we’ve seen federal regulators pressure financial institutions to divest of whole industries. Why would we take the risk?
“Our free market system is the envy of the world. It encourages competition that benefits consumers by yielding solutions that better serve them. There is room for improvement, but not with government take-overs like my Democrat colleagues are pushing today.
“I yield back.”
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