Startups Take on Equifax, Experian Over Payroll Data Dominance

A pair of startups is challenging top credit reporting firms that collect the payroll records of millions of Americans, and they’re urging federal regulators to investigate the incumbents’ influence on competition and consumer data privacy.

Payroll information is valuable to lenders, landlords, and potential employers, who use the data to verify a person’s income and employment history. Rather than confirming such information directly with an employer, they often purchase the data from credit reporting firms likeEquifax Inc. and Experian Plc. These firms act as go-betweens, relying on their data-sharing relationships with employers and human resources software providers to ...