So yes, the problem is one here the credit bureaux get to externalize their risk. I was arguing with your rejection of the 'insurance model' for bringing some of those externalities back in house. Your proposal of strict liability is really just a banning of the industry in disguise: without the possibility of insuring away those risks it's not viable to stay in business - an agency is going to get breached even if they are as careful as possible. I don't think the lobby (and it'd be bureaux and lenders lobbying on the same side) would permit that outcome, no matter how strong the political will. It's too far reaching.
My response is, insurance doesn't preclude elimination. Those bureaux aren't going anywhere tomorrow. Incremental reform along the lines proposed by whatever grandparent we are both under provides a path to improvement, better risk management for individuals, and it could perhaps ultimately lead to your desired end state of a completely restructured consumer credit market.