Skip to main content
Menu Icon Menu Icon
Close

InfoBytes Blog

Financial Services Law Insights and Observations

FTC Announces Settlement of More Than $104 Million with Company for Selling Sensitive Financial Information

Privacy/Cyber Risk & Data Security Courts Consumer Lending Internet Lending FTC

Privacy, Cyber Risk & Data Security

On July 5, the FTC issued a press release announcing a settlement of more than $104 million with a lead generation company for allegedly misleading loan applicants with promises of matching consumers with lenders that could offer the best loan terms. Actually, the FTC asserts, defendants were selling the applications, including sensitive personal information such as Social Security numbers and bank account numbers, to anyone who would pay for them “without regard for how the information would be used or whether it would remain secure.”

The proposed order accompanying the settlement states that defendants used deceptive and unfair acts or practices in the course of their lead generation activities, and permanently prohibits defendants from misrepresenting financial products or services to consumers. It also enjoins defendants from selling or transferring a consumer’s personal information unless the consumer has provided consent and provides that defendants may not benefit from any consumer information collected before the entry of the order. Further, defendants must destroy all personal consumer information in any form within 30 days after the order.

In addition to the above settlement terms, the defendants agreed to (i) compliance monitoring, (ii) creating certain records for ten years after the date of entry of the order, and (iii) compliance reporting

Although defendants have filed for bankruptcy, they agreed that the amount owed to the FTC in the settlement will not be dischargeable.

Share page with AddThis