If you’re not familiar with the name Equifax, it’s part of the big three of credit reporting bureaus that also includes Experian and TransUnion. As of last report, Equifax has information on about one-third of all American adults. In fact, it has what’s probably the most thorough and powerful database of information ever created, which contains about 190 million salary and employment records that covers over one-third of all U.S. adults. This information is contained in a database owned by The Work Number, which is a subsidiary of Equifax.
Sold to debt collectors
According to NBC, The Work Number has sold some of this information to debt collectors and other companies that offer financial services. One owner of a small company that does employment backgrounds called this “the biggest privacy violation in our time. It’s legal and nobody know about it.”
The most sacred information
Probably the most sacred information for most Americans is their salaries. The Work Number not only sells this information, it is so detailed that it has pay stubs for many of us that go back years. In addition, the company has and sells other human resources-related data including, the name of employees’ healthcare providers, whether or not the employee has dental insurance and if the person ever filed for unemployment. Four years ago, Equifax reported that its data covers 30% of the working population in the U.S. and that it was adding 12 million records a year. This means it probably has added at least 36 million records since then.
How does Equifax get this data?
Believe it or not, the company gets this information with the help of many U.S. businesses, including a number that are members of the Fortune 500. Even worse, government agencies – representing roughly 85% of all federal civilian employees – also provide this “secret” information. Some even pay Equifax for the pleasure of giving away their employees’ personal information.
Why debt collectors love it
Debt collectors love this information because it represents an easy way for them to get employment verification information. This generally happens when people are applying for a new job. HR departments hate to be asked for this information because they see this as an expensive distraction and because it opens the door to lawsuits if someone were to say something disparaging about the former employee. The Work Number relieves them of this burden by automating the process.
It is shared
Equifax has confirmed that the company shares “pay rate” information with other companies such as auto, mortgage and other credit grantors. It has even admitted to sharing pay rate date with debt collection agencies even though it is not supposed to. In fact, Equifax markets information from The Work Number specifically to companies such as student loan issuers. There is a brochure on the company’s website where it brags that it makes debt collectors’ jobs easier.
What you can do about this
Unfortunately, the answer to the question is “not much”. As Equifax has pointed out, our federal government under the Fair Credit Reporting Act authorizes the sharing of much of this information. You’ll just have to hope that any information that was shared about you didn’t include “all” of your work history.
Review your credit report
If you review your credit report you might find that The Work Number has accessed it, which could be a warning sign. Beyond that, it’s important to review your credit report and your credit score regularly. If you find that you have a low credit score (below 650), it’s probably because you’re in trouble with debt. If this is the case, you should contact us to discuss debt consolidation. Our debt consolidation providers have a proven track record for being able to get our clients out of debt in a reasonable amount of time and we even guarantee this. Call us today or fill in the form on this page to get more information about the many benefits of debt consolidation.