WASHINGTON - (01/27/06) ChoicePoint, the data brokerthat set off a national debate after disclosing a data breach earlyin 2005, will pay $15 million in fines and penalties for allowinghackers to steal confidential records of more than 163,000consumers, the Federal Trade Commission announced Thursday. Thesettlement calls for ChoicePoint to pay a $10 million fine, thelargest ever levied by the FTC, and to set up a $5 million fund toaid victims of identity theft that resulted from the data breach.Claudia Bourne Farrell, a spokesman for the FTC, told The CreditUnion Journal they believe the incident resulted in at least 800consumers having their accounts compromised but did not know thetotal amount of unauthorized transactions. The FTC said thatChoicePoint turned over sensitive personal information tosubscribers whose applications raised obvious "red flags."ChoicePoint approved contracts with customers who used commercialmail drops as business addresses and reportedly used fax machinesat public commercial locations to send multiple applications forpurportedly separate companies, the FTC said. The FTC charged thatChoicePoint violated the Fair Credit Reporting Act by giving credithistories to subscribers who did not have a permissible purpose toobtain them, and by failing to maintain reasonable procedures toverify subscriber identities. ChoicePoint's data breachannouncement in February, spurred by a 2003 California breachnotification law, was the first of dozens of such announcements in2005.
-
The Cleveland-based bank is projecting steady growth in net interest income even as credit losses remain manageable. But Chairman and CEO Chris Gorman also said that he thinks a recession is likely.
4h ago -
The first-quarter increase involved commercial real estate loans, including some problematic multifamily loans and an office credit, but none of the criticized loans were to consumers, officials at the Dallas company say. Further CRE deterioration is anticipated.
5h ago -
The Detroit-based company is exploring ways to make more consumer auto loans without running afoul of stricter capital standards that are expected from the Federal Reserve. Possible approaches include more securitizations and the use of credit risk transfers.
5h ago -
The House Financial Services Committee also sent to the full House two bipartisan bills, including one that would prevent large banks from opting out of having to recognize Accumulated Other Comprehensive Income in regulatory capital.
6h ago -
Charge-offs and nonperforming loans rose at the Georgia bank in the first quarter. But it blamed the problem on one large client and said the matter has been resolved.
7h ago -
Amid healthy first-quarter loan growth and improving credit quality, Discover Financial Services slashed its profits by $800 million to offset remediation costs from a 16-year period when it overcharged certain merchants.
8h ago