California Attorney General Kamala Harris released a report on October 28 on the growing threat of data breaches on California residents. According to the report, data breaches in California jumped 28 percent last year, from 131 reported incidents in 2012 to 167 in 2013. The breaches affected 18.5 million Californians by putting their personal information
FCC Steps into Data Privacy Fray with Action Against Telecommunications Company
The Federal Communications Commission took its first step into the field of data security regulation on October 24 when it hit two telecommunications companies with a $10 million fine for allegedly failing to adequately safeguard customers’ sensitive information.
The two companies – TerraCom, Inc. and YourTel America, Inc. – were fined for allegedly placing the
CFPB Finalizes Privacy Policy Disclosure Rule
On October 17, the Consumer Financial Protection Bureau finalized an administrative rule, first proposed in May, that allows qualifying financial institutions to post their privacy policies online in lieu of sending the policies to customers personally. The rule, an amendment to a regulation known as “Regulation P,” 12 C.F.R. Part 1016, applies both to
CFPB Turns Attention to Specialty Consumer Reporting Agencies and Access to Checking Accounts
On October 8, Consumer Financial Protection Bureau Director Richard Cordray delivered prepared remarks on screening policies and practices associated with the opening of checking accounts. These remarks, which focused on the specialty credit reports used by banking institutions to determine a potential customer’s credit risk, may signal the CFPB’s increased interest in access to checking
CFPB Scrutinizes Checking Account Screening
The Consumer Financial Protection Bureau will review how credit unions and banks use reporting agencies to screen members when they open a checking account, according to CFPB Director Richard Cordray’s remarks at an October 8 forum in Washington. The CFPB is concerned about the accuracy of reports from these databases, whether customers can access and
Seventh Circuit Reverses Class Action “Coupon” Settlement Under the Fair Credit Reporting Act
In Redman v. RadioShack Corporation, 2014 U.S. App. LEXIS 18181 (7th Cir. Sept. 19, 2014), the Seventh Circuit held that the lower court erred when it approved a settlement in a class action that was filed under the Fair and Accurate Credit Transactions Act (FACTA), 15 U.S.C. § 1681c(g), against a company that sold
U.S. Supreme Court Invites Solicitor General to File Comment on Pending Spokeo Appeal
The United States Supreme Court today issued an order inviting the U.S. Solicitor General to file a brief on the pending cert petition filed in Spokeo, Inc. v. Robins, which is on appeal from the Ninth Circuit. The issue in Spokeo is whether Congress may confer Article III standing upon a plaintiff who suffers
GAO Insists That CFPB Must Improve Financial Data Security
According to a recent study by the U.S. Government Accountability Office, the financial data gathered by the Consumer Financial Protection Bureau on 25 million to 75 million U.S. credit cardholders is not safe enough. As part of its government mandate, the GAO examined laws, regulations, and contracts pertaining to the CFPB’s data collection methodologies, risk
Congresswoman Proposes Fundamental Changes to FCRA
On September 10, Congresswoman Maxine Waters released a draft proposal entitled “Fair Credit Reporting Improvement Act of 2014” that, if passed, could lead to fundamental changes in the credit reporting industry.
According to the published summary of the key provisions of the proposed legislation, the legislation would alter various aspects of credit reporting in favor
Data Breach Generates Putative FCRA Class Action Against Hospital
On September 4, in Tierney et al. v. Advocate Health and Hospitals Corp., the United States District Court for the Northern District of Illinois issued an order dismissing a putative Fair Credit Reporting Act class action accusing Advocate Health and Hospitals Corp. of violating the FCRA by failing to secure health data stolen from