Equifax boosted its budget by 12 percent, lobbyists work to polish image

WASHINGTON - The Atlanta credit bureau Equifax ramped up its spending over the past three months to lobby the federal government and protect its image as it took fire for exposing the personal records of more than 145 million Americans.

Its two main competitors, meanwhile, shifted their resources to do the same.

New federal records released this week show Equifax increased its budget to lobby Congress and agency regulators by 12 percent between the second and the third quarters of this year.

Roughly three weeks before the end of the third quarter, Equifax announced its system, which hosted millions of Social Security numbers, birth dates and addresses, had been compromised.

It's unclear how much of the $280,000 the company spent went to repair its image after company leadership learned of the massive hack on July 29 or the breach was made public on Sept. 7. The federal forms show only that overall spending increased by $30,000 from the prior quarter.

But the document includes notable details about what Equifax's lobbyists were focused on between July and the end of September. That includes a Consumer Financial Protection Bureau regulation curtailing the industry practice of forced arbitrations - binding customers to a mediation session with an arbiter and forcing them to waive their right to sue - and related legislation authored by U.S. Rep. Barry Loudermilk, R-Ga., that would have curtailed class-action lawsuits against certain businesses.

Equifax was excoriated last month for including forced arbitration language in the terms of service of the free credit monitoring it was offering its customers after the breach. The company quickly dropped the provision amid the public outcry, while Loudermilk abandoned his legislation, which would have limited class-action payouts if companies were sued.

The company also lobbied on legislation touching health care, immigration verification software and student-loan repayment.

'Equifax works to ensure that new legislation captures the benefits of credit reporting to the U.S. economy, as well as the effects of certain regulation on the financial system,” Equifax said in a written statement to The Atlanta Journal-Constitution on Thursday.

'We believe in fair industry regulation and advocating for policies that protect consumers' rights, as well as the integrity of the consumer data industry.”

The spending uptick is notable as the company looks to rebuild the trust of Congress, federal agencies and the general public.

Former Equifax CEO Rick Smith embarked on an apology tour of sorts earlier this month. In four back-to-back appearances before congressional committees, he personally apologized for the breach and attributed it to a mix of 'human error and technology failures.”

Meanwhile, Equifax competitors Experian and TransUnion acknowledged in their own federal lobbying reports that they had to do extra work to protect their industry and companies' reputations since the hack became public.

Both companies kept their in-house lobbying funding steady between the second and third quarters this year, but each noted in their report that they took time to discuss issues such as data breaches, cybersecurity and credit freezes as they related to the Equifax hack.