Saturday, January 5, 2008

$50,000 Fine for Tossing Borrowers' Credit Reports in Dumpster

$50,000 Fine for Tossing Borrowers' Credit Reports in Dumpster
Wednesday, January 02, 2008 -

CHICAGO, IL - A mortgage company that left loan documents with consumers’ sensitive personal and financial information in and around an unsecured dumpster has agreed to settle Federal Trade Commission charges that it violated federal regulations. The FTC’s complaint alleges that Northbrook, Illinois-based American United Mortgage Company violated the Disposal, Safeguards, and Privacy rules by failing to properly dispose of credit reports or information taken from credit reports, failing to develop or implement reasonable safeguards to protect customer information, and not providing customers with privacy notices.

“Every business, whether large or small, must take reasonable and appropriate measures to protect sensitive consumer information, from acquisition to disposal,” FTC Chairman Deborah Platt Majoras said. “This agency will continue to prosecute companies that fail to fulfill their legal responsibility to protect consumers’ personal information

Calling Leads Lands Mortgage Company in Hot Water

The Federal Trade Commission and the US Department of Justice has settled another case involving Do Not Call violations by a mortgage company. The settlement includes a $426,782 civil penalty against USA Home Loans Inc. and its owner, David Vach.

FTC Alleges Ads For “Free” Credit Report Violate Federal Court Order, doing business as Experian Consumer Direct, will pay $300,000 to settle Federal Trade Commission charges that ads for its "free credit report" offer failed to disclose adequately that consumers who signed up would be automatically enrolled in a credit- monitoring program and charged $79.95. The FTC alleged that the failure to clearly disclose the enrollment and charges violated a previous settlement.

Defunct Ameriquest and Global Mortgage Funding Part of Seven Million DNC Settlement

The Federal Trade Commission announced a law enforcement crackdown on companies and individuals accused of violating the requirements of the National Do Not Call Registry, resulting in six settlements collectively imposing nearly $7.7 million in civil penalties, along with an additional complaint that will be filed in federal district court.

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