On the contrary: the credit reporting industry is a perfect example of market failure thanks to regulatory capture.
The actors in the market exercise a high degree of control over the regulators. The regulators are not independent and the companies that influence them are not innocent.
All markets are constructed. The credit reporting market is just set up with rules which are grossly harmful to individuals.
Regulators should answer to the people, but because corporations are extremely motivated, fabulously wealthy, and privileged by the court system, the people have to compete for the regulators' attentions. I think it makes sense to acknowledge that Equifax is acting against the common good, even if that's just incidental to Equifax acting in its own interests.
Data breaches have significant real-world harm. Unfortunately Equifax got out of this without paying fines in several state at least. It was the regulators who failed us here, not the market: https://www.reuters.com/article/us-equifax-states-agreement/...
Customer data should be like radioactive waste. Companies should know that if they have it, they have to take appropriate measures to secure it, and if they don't they will take a significant financial hit. The financial penalties should be significant enough that if a business doesn't feel sure they can invest into proper security, it makes more sense to just not keep the user data.