A bill that would eliminate the fees credit bureaus charge customers who want to freeze their credit has passed the Washington state Senate Financial Institutions & Insurance Committee.
Senate Bill 6018 comes in the wake of the Equifax breach, which resulted in nearly 143 million American having their private information stolen by hackers.
Following the hack, consumer watchdogs recommended that all customers request a "credit freeze" from the three credit reporting agencies -- Equifax, Experian, and TransUnion. A freeze blocks anyone from accessing a credit report, which makes it more difficult for hackers to open new accounts using stolen data.
The agencies also charge a $10 fee for this service and, the fee happens each time a consumer freezes or unfreezes their credit. The credit must be unfrozen to generate a credit report, which is necessary to buy a car or apply for a mortgage.
Sen. Mark Mullet, D-Issaquah, the committee's chairman called the bill a "bipartisan consumer protection measure."
"Consumers whose sensitive financial data has been exposed through no fault of their own should not have to pay to protect their credit rating," Mullet said in a statement. "These high-profile, cyber security threats have created a lot of fear, but I'm confident that my bill will make it easier for people to protect themselves and their identities without financial penalties."
The bill will now move to the Senate rules committee before it proceeds to the Senate floor for a vote from the full body. It would then have to pass the House before going to Governor Jay Inslee for his signature.
Last Week Tonight host John Oliver explained the Equifax breach and freezing your credit in this piece last year. (Warning: Graphic language)
