Credit reporting companies should register with New York: governor

This post was originally published on this site

WASHINGTON (Reuters) – New York Governor Andrew Cuomo plans to require all credit reporting agencies to register with the state and comply with its cyber security rules, he said in a statement on Monday.

The proposed regulation, ordered after Equifax Inc’s (EFX.N) breach exposed sensitive data of up to 143 million people, would take effect in February, the statement said. If the companies do not register, they risk being barred from doing business with financial companies regulated by the state.

Shares of Equifax, which have fallen about a third since the hack was announced, were down 0.2 percent at $92.83 in morning trading.

Cuomo said credit reporting agencies, including TransUnion (TRU.N) and Experian Plc (EXPN.L), each year would have to report their officers or directors who are responsible for compliance with laws and regulations involving financial services, banking and insurance.

The state would also be able to bar a credit reporting agency from doing business there if it is found to engage in “unfair, deceptive or predatory practices,” the statement said.

Proposed regulations are typically subject to a period when the public may comment on them before they become final.

“The Equifax breach was a wakeup call,” Cuomo said in the statement, “and with this action, New York is raising the bar for consumer protections that we hope will be replicated across the nation.”