BOSTON — The Massachusetts State Senate voted on Thursday to pass a credit protection bill that gives consumers more rights to protect their financial security in the wake of the 2017 Equifax data breach.
The breach exposed the personal data of 147 million Americans to the risk of identity theft. In response, Attorney General Maura Healey filed a lawsuit against Equifax alleging that the company knew or should have known that a serious security vulnerability existed but failed to patch or upgrade its software to eliminate it, according to a report.
The bill passed by the Senate, S.2455, An Act removing fees for security freezes and disclosures of consumer credit reports, requires credit agencies to provide five years of free credit monitoring to customers if their agency has been breached. It also makes credit freezes free and requires that consumers be notified and consent to their credit reports being pulled.
“Consumers need protections for the sensitive financial data they entrust to companies like Equifax. They should not be held responsible financially or otherwise when a data breach leaves them vulnerable to identity theft. This is a particular concern for the elderly, who rely on a limited income and expect their financial information to be secure with credit agencies,” said Sen. Lesser.
The Senate also passed S. 2266, An Act to prevent bureaucratic overreach in the collection of student debt, to protect students from losing their professional licenses because they had to default on their student debt.
Under current law, the Massachusetts Educational Financing Authority (MEFA) and the Massachusetts Higher Education Assistance Corporation – a former loan guarantor that now operates as American Student Assistance, a national nonprofit – can request that a borrower’s state-issued professional or occupational certificate, registration or license be suspended, revoked or cancelled for default on educational loans made or administered by either entity.
“Student loans are already the only type of loan that cannot be discharged in bankruptcy. To take away borrowers’ means of paying those loans back — by working under the professional licenses they earned with their education — is unfair and counterproductive. I am glad that the Senate took this step, following the Senate’s passage of the Student Loan Bill of Rights, to give needed protections to student loan borrowers,” said Sen. Lesser.
“Taking away a borrower’s ability to engage in their profession does not put them in a better position to be able to repay the loan,” said Sen. William N. Brownsberger, lead sponsor of the bill in the Senate.
2266 will now go to the State House of Representatives for consideration, while S. 2455 must be reconciled with a similar bill already passed in the House.