Will The Government Now Monitor Your Credit Card Data?
The Consumer Financial Protection Bureau is thinking of taking a new approach to “financial protection” by monitoring 80% of all credit card transactions in the U.S. This would be done through a controversial data mining program that would evaluate up to 42 billion transactions in a single year.
The data mining program would be linked to 110 banks, including Chase, Capital One, Bank of America, Discover and American Express. In addition, the proposed program would assess up to 95% of mortgage loan transactions.
Members of the House are strongly against the plan, which was discussed in a heated House hearing last week. Republican Sean Duffy of Wisconsin said, “This is one step closer to a Big Brother form of government where they know everything about us.”
According to Representative Spencer Bachus, a former member of the House Financial Services Committee, a data mining program like this would go against the Dodd-Frank Act, which prevents the government from collecting personally identifiable financial information about consumers.
Bachus said this program may also go against the Fourth Amendment, which allows Americans to be free from government intrusion when dealing with legal representation.
“They are challenging through their actions, one of the most basic freedoms guaranteed by our forefathers and that is the right to counsel,: said Bachus. “It’s just nuts.”