Understanding laws and codes

Many countries have detailed and specific laws protecting personal data and consumer rights to privacy. It is Experian’s responsibility to understand and fully comply with these laws. Examples include the European Data Protection Directive and complementary Member State legislation such as the UK Data Protection Act. In the US, the Federal Fair Credit Reporting Act (FCRA) and various State laws place strict controls on the purposes for which information can be used, how it must be protected from misappropriation and the rights of consumers to access, challenge and amend it.

A constructive approach to legislation

In most of the countries where we do business, there is a lively debate about how personal data should be collected and used, and how to balance the benefits of information use with consumers’ rights to privacy and security. This debate plays out in the public sphere through a constant process of change to law and business guidelines. As new issues emerge, or as social attitudes change, legislators and industry leaders propose changes to existing laws and business practices. Each change is subject to debate, consultation and refinement as those affected by it make their views heard.

Experian makes a valuable contribution to these discussions. Our expertise in data management allows Experian to provide lawmakers and industry groups with a keen understanding of the consequences - either seen or unforeseen - of policy changes. Because Experian is a global organisation, we can offer examples of good practice in other countries, citing what has worked well and what has not.

Because of our expertise, we are often asked by legislators to provide insight into proposed credit legislation in emerging markets. During the past decade, Experian has worked closely with the World Bank to promote credit reporting reform in emerging economies. The World Bank has stressed that an efficient system of credit allocation is the foundation of emerging economies. An efficient and stable economy rests on the ability of lenders to adequately assess the credit risk of consumer and small and medium-sized enterprises.

With a large and active consumer market, the US is often at the forefront of trends in consumer protection and has seen considerable public attention and debate regarding information privacy and security. Among the many public policy issues being debated are: solutions to identity theft; consumer notice of security breaches; consumers’ rights to freeze credit files; restrictions on public records; and limits on the use of personal identifying information such as Social Security numbers. We have worked diligently to share our knowledge and expertise on these matters with legislators so that they can make fully informed decisions regarding any legislation that is put forward. At the same time, industry guidelines have been developed in order to ensure best practices and to avoid onerous and inflexible laws. Our goal is to ensure the best balancing of information use and consumer protections without unnecessary impact on day-to-day business activity.

Experian’s leadership role is also demonstrated by the fact that the relevant company executives are engaged in a number of international organisations and industry councils, such as the Consumer Data Industry Association, the Association of Consumer Credit Information Suppliers, the Direct Marketing Association, the Advisory Group to the UK’s Over indebtedness Taskforce and the Asia Pacific Economic Cooperation (APEC) council.

Back to top