How the CFPB Should Respond to Equifax

In the worst possible way, the monumental data breach at Equifax -- involving the names, addresses and social security numbers of some 143 million people -- draws attention to a long-neglected gap in the U.S. system of financial oversight. The Consumer Financial Protection Bureau ought to take the lead in putting this right.

The three big U.S. credit reporting companies -- Equifax, Experian and TransUnion -- have an unusual combination of power and lack of accountability. They dominate the business of collecting information on consumers, influencing everything from who gets jobs to how much interest people pay on mortgages. But they're not answerable to those consumers; they primarily serve the banks and other customers that buy their products. As a result, they lack strong incentives to invest in keeping sensitive data secure, or to fix mistakes that can ruin people's lives.