Illinois recently enacted legislation that broadly restricts a private employer from using credit reports regarding job applicants or current employees.
Financial Privacy
If You Let Them Build It, They Will Come: Regulatory Agencies Release Model Privacy Notice Online Form Builder
By Proskauer Rose on
The eight regulatory agencies that released the final model privacy notice form that satisfies the disclosure requirements under the Gramm-Leach-Bliley Act have released an Online Form Builder to assist financial institutions in meeting their obligations under the act.
…
Bellwether or Bust? Washington Governor Signs Payment Card Data Breach Liability Provisions Into Law
By Proskauer Rose on
On March 22, 2010, Washington Governor Christine Gregoire signed H.B. 1149 into law, making her state the second behind Minnesota to hold businesses and governmental entities responsible to financial institutions for certain costs arising from payment card information breaches. As of July 1, entities that process more than 6 million credit or debit card transactions annually who fail to reasonably safeguard card information can be required to reimburse financial institutions for the costs related to the re-issuance of cards as well as attorneys fees and costs in the event that a security breach involving payment card information is a proximate result.
…
We’ll Give You (and Your Friends) a Hoodie to Go Away: Class Settlement in FACTA Truncation Lawsuit Receives Preliminary Approval
By Proskauer Rose on
On February 3, 2010, the U.S. District Court for the Western District of Pennsylvania preliminarily approved a class action settlement between Aramark Sports, LLC and a class of approximately 5,000 customers who made credit or debit card purchases from stores at PNC Park in Pittsburgh, Pennsylvania. If approved, the proposed settlement would resolve allegations made by the plaintiffs that Aramark violated the Fair and Accurate Credit Transactions Act’s (“FACTA”) truncation requirements by electronically printing receipts that contained (a) more than the last 5 digits of the plaintiffs’ credit or debit card numbers and/or (b) the expiration date of such cards.
…
District Court Rules E-mail Order Confirmations Not Subject to FACTA
By Proskauer Rose on
Judge John W. Darrah of the Northern District of Illinois Eastern Division held that FACTA’s prohibition against the electronic printing of a debit or credit card’s expiration date on receipts was inapplicable to e-mail order confirmations.
…
Innocent Mall Shoppers, You’re Off the Hook: Federal Agencies Release Model GLBA Privacy Notice Form
By Proskauer Rose on
On November 17, 2009, eight federal regulatory agencies released their final model privacy notice form that is intended to make it easier for consumers to understand how financial institutions collect and share information about them.
…
Red Flags and Address Discrepancies FAQs
By Proskauer Rose on
On Thursday, the staff of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, Office of Thrift Supervision and the Federal Trade Commission issued a set of FAQs to assist financial institutions, creditors, users of consumer reports, and card issuers in complying with the Red Flags and Address Discrepancies Rules under FACTA.
…
FINRA Fines Member Firm $175,000 for Failure to Protect Confidential Customer Information
By S. Montaye Sigmon on
The Financial Industry Regulatory Authority (FINRA) announced on April 28, 2009 that it had fined Centaurus Financial, Inc., of Anaheim, California, $175,000 for Centaurus’s failure to protect confidential customer information. FINRA also required Centaurus to send notifications to affected customers and their brokers, provide one year of credit monitoring at no cost to the affected customers, and certify to FINRA that its procedures and systems are in compliance with privacy requirements. See FINRA News Release (April 28, 2009).