After repeated data leaks, why does US trust Experian with credit data?

Question

Recall credit scores are quite new, first appearing in 1989[1]. Since its inception, credit reporting functions as a means of maintaining socio-economic hierarchies.Companies such as Experian have made billions of dollars harvesting and leveraging our data to essentially decide our "worth" (i.e., our "credit score"). We have little insight into the data they gather, little power to proactively curate that data, and no power to properly secure that data. After repeated data leaks (e.g., [2][3]), our identities are forever under attack[4].Questions:- Why are we still trusting companies like Experian with our credit-based data?- What options does US have to move beyond the credit score?- Do non-US countries suffer this same level of incompetence related to obtaining and maintaining "credit"?[1]https://time.com/3961676/history-credit-scores/[2]https://krebsonsecurity.com/2021/04/experian-api-exposed-credit-scores-of-most-americans/[3]https://www.techradar.com/news/identity-thieves-crack-major-experian-security-flaw-access-customer-credit-reports[4]https://www.theregister.com/2023/06/06/mercer/

dingosity · Accepted Answer

Because that's the purpose of Experian, to spread your identifying information as far and wide as possible so they can later charge you money to repair your bad credit.
It's sort of like the US Courts are there to demonstrate how rich people need never fear the outcomes of their actions. And secondarily something about crime and tort.
Your local county elections department is there to reinforce the narrative that "democracy" means voting every four years. (Every two years if you're especially committed.)

youainti · Answer

Because you can't opt out.Lenders want to know about bad financial behaviors (indicators someone might not be trustworthy) to avoid a "market for lemons"[1] problem. So, they contract with these rating agencies to provide extra information about potential borrowers. Where do these agencies get their data? Lenders in turn must report the credit lines they issue, usage, defaults, etc. So, when you are borrowing, the bank can know how you use (or abuse) credit, in addition to things that you provide such as earnings and savings.A couple of things to note. There is a difference between credit scores and credit reports[2]. Different types of credit lines may focus on different aspects of your credit report or use a different credit report [Only source I have for this was a forum I attended where a local bank had a loan officer talk about their side of issuing credit].[1] https://en.wikipedia.org/wiki/The_Market_for_Lemons [2] https://www.consumerfinance.gov/ask-cfpb/what-is-the-differe...