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2003 Debt Management Conference

IDENTITY THEFT

BILL COLEMAN ISAC

2003 NCHELP Debt Management Conference

WHAT IS IDENTITY THEFT?

Identity theft involves acquiring key pieces of an individual’s personal information in order to impersonate them.

This information enables the identity thief to commit numerous forms of fraud against the individual or company


What personal information would be used for identity

theft?NameBirth-dateSocial Security NumberCredit Card informationOther piece of personal information

(check stub, receipts, etc.)


How does a thief get personal information?

Going through your trash or mail retrieving credit card receipts or other personal information.

Removing mail from your mailbox, especially financial information (tax records, bank statements, credit card bills).


How does a theft get personal information?

Call you on the telephone posing as a solicitor in order to gain personal information.

Look over your shoulder at an ATM while you are accessing your account to gain your account number, password or pin.


What exactly can they do with personal information?

Obtain loans.Lease or buy cars.Access the persons existing bank account.Get Insurance in your name.


How will I know if I am a victim?

Your credit card statement show unauthorized changes and/or purchases you did not make.

You fail to receive bills or credit card statements for charges you have made.


How will I know if I am a victim?

You are receiving phone calls from creditors trying to collect debts that you did not make.


What if you find out your identity has been stolen?

Report the crime to the local police.

Contact your credit card issuers, close your existing account and get replacement cards.

Have a password put on your account.


What if you find out your identity has been stolen?

Call the fraud unit of the three credit reporting bureaus and report the theft of your card and/or number. Ask that your account be flagged with a “fraud alert”.


How can I protect myself from identity theft?

Do not carry important documents with you unless absolutely necessary.

Only keep a few credit cards in your wallet or purse when shopping.

Invest in a shredder and shred all personal informational documents.


Reference informationEquifax Credit Bureau, Fraud1-800-525-6285

Experian Information Solutions1-888-397-3742

Trans Union Credit Bureau, Fraud1-800-680-7289


Reference informationSocial Security AdministrationFraud Hotline1-800-269-0271

Federal Trade Commission1-877-IDTHEFT

U.S. Postal Service (Local Post Office)


THANK YOU!


Privacy v. Technology (again):

Compliance with ADAD Laws

Lawrence A. LaskeyV.P., CounselVan Ru Credit Corporation


Only In America We order double cheeseburgers and

large fries… with a Diet Coke

A pizza arrives at your house faster than the ambulance

Medicine is dispensed in the back of the store… the cigarettes are up front


“I Could Tell You, But Then I’d Have To Shoot You”

Legitimate concerns Access to Information

Internet Databases

Disclosure of Information Necessary to business purpose Related, but not “necessary” Other


“Oldies but Goodies” Statutory Requirements

FERPA, FDCPA, etc. The “federal alphabet” rules

“Common law” Invasion of privacy Emotional distress Trespass


And, More Recently… GLB HIPAA Calif. SSN Still, workable if

obtain, use and disclose for proper purpose

notification/permission However, a third concern


The Right To Be Left Alone Addresses

Telemarketing Recorded messages Autodialers

To avoid Fraud, misrepresentation Abusive calling Risk of public safety Telecom overload Intrusion on “privacy”


Consequences On aversion/collection activity?

Confusion as to application Effectiveness of campaigns Staffing patterns Hampers ability to utilize

technology Another plaintiff's “playground” Potential increased costs


Federal Law: Telemarketing Telemarketing and Consumer

Fraud and Abuse Prevention Act FTC Telemarketing Sales rule

Disclosures/call times National “do not call” registry

The good news: Solicitations of “goods or services” NOT collection efforts


Federal: Autodialers and Recorded Messages

Telephone Consumer Protection Act

FCC Report and Order No autodialer or pre-recorded

messaging calls to•Emergency numbers•Hospital/nursing home rooms•Numbers for which recipient is

charged


Federal Law: Recorded Messages

FCC Report and Order Also, separate messaging rules

•Prohibited, unless• consent • non-commercial (or is, but no

advertisement)• pre-existing relationship

•Still, caller must• identify• maintain “live” response number

•Key: definition of “autodialers”


We’re All Alright! (So Far) Generally, Federal law reflects a

workable environment Telemarketing laws N/A Limited “auto dialer” definition

However… State law is not pre-empted States are addressing the area Stage is set for further regulation


“Who’s On First?” Some impose no new

requirements

Others apply, with added rules

… and some don’t really know


Another fine mess… Problem: those that don’t

address the issue. Concern is telemarketing abuses

Impact on aversion/collection not considered

Laws not narrowly drafted Application uncertain


Another fine mess… Definitions start with

Federal “random or sequential” Add “ability to store/dial”

Ill-defined exemptions for “established” relationships

“Information solicitation” (?)


Another fine mess…

State penalties and enforcement

FDCPA “bootstrap” potential

Disclosure conflicts


Impact On What You Do, and How

Rules specific to called-in state Prohibited numbers Call hour limits Called party consent “Live” operators ANI blocking Dialer rates


Increase costs Compliance with multiple laws Disconnect requirements Line release capabilities/timing Call “scrubbing” Staffing Permits. Etc. Lawyers


déjà vu all over again… No calls to emergency etc.

numbers (like federal), but also… Social service Unlisted Vacation rentals NY “bona fide error” exception


Call…waiting

Regulatory administration Permits Registration Telecom consent


“Go West…!” California autodialers

Operator “available” •CPUC “acceptable” error rate• record-keeping

Application to our activities?•Telemarketing focus?•“Relationship” exception for ADAD?

Use of recorded message•“available”/ response?


“Circle the Wagons (?)” Other “more difficult” requirements:

Message must identify caller, explain intent of message and obtain consent

Some require live operator and return number (not the dialer trunk)

Only collection agencies in Minnesota NY recognizes FDCPA disclosure limits


What Can We Do? Be aware of the rules Focus on cost effective

compliance Change/clarify/exempt

State level Federal pre-emption


THANK YOU!


PRIVACY LAWS AND GUARANTORS

Pablo S. SalasLitigation AttorneyColorado Student Loan Program

YOUR LOGO HERE


“Oldies but Goodies” Privacy Act FERPA RFPA FDCPA FCRA FTC


The New and Improved Federal and State Law

GLB Id Theft Assumption and Deterrence

Act California SSN Law California’s proposed Privacy Act


PRIVACY ACT OF 1974

PURPOSE To safeguard against invasion of privacy

by misuse of records by Federal Agencies

Permits inspection and copying of personal

records kept by the Agency Right to amend records if inaccurate,

untimely.or incomplete


FAMILY EDUCATIONAL RIGHT TO PRIVACY ACT

Provides students and parents right to inspect and review educational records Applies to educational agency or

institution Right may not be waived as condition of

admission or financial aid Right to notice and hearing to challenge

contents of records


RIGHT TO FINANCIAL PRIVACY ACT OF 1978

Regulates disclosure of financial information to government agencies by financial institutions

For law enforcement purposes unless consent notice provided and given opportunity for a hearing


FDCPA OF Purpose

To prevent abusive, deceptive and unfair debt collection practices

Provides Prohibition of sharing consumer debt

information to third parties Collection do’s and don’ts FTC regulated


FAIR CREDIT REPORTING ACT

Purpose Protects information collected by

consumer reporting agencies Requires

• Consumer reporting agencies to develop reasonable measures to store information in a confidential and accurate manner


GRAHM-LEACH BLILEY ACT Requires the FTC, Federal Banking

Agencies, National Credit Union Administration, Treasury Department, and SEC to:

Issue regulations ensuring that “financial institutions” protect the privacy of consumers “nonpublic personal information”.


GRAHM-LEACH BLILEY ACT Requires that they

Give annual notice to customers of their privacy policies

Allow customers to “opt out” of information sharing arrangements with third parties. and

May disclose to their affiliates without permission


GRAHM-LEACH BLILEY ACT May disclose information with

affiliates Limits the sharing of account

information for marketing purposes


ID THEFT ASSUMPTION AND DETERENCE ACT

Makes the FTC a central clearinghouse for Id theft complaints

Requires FTC to provide victims with relevant

information refer complaints to appropriate

agencies (i.e., law enforcement)


FEDERAL TRADE COMMISSION ACT (FTC)

Purpose: Prevent unfair competition

methods, and unfair or deceptive acts or practices that may affect consumers

Regulatory power define unfair or deceptive trade

practices


FEDERAL TRADE COMMISSION ACT (FTC)

Investigative power Conducts investigations relating to

the organization, business, practices, and management of entities engaged in commerce

Enforcement Power seek monetary and other relief


CALIFORNIA SSN LAWS Prohibits an entity from:

Publicly post or display an individual’s SSN

Print an SSN on any card requested for a person to access products or services

Requiring an SSN over the internet unless secure or encrypted


CALIFORNIA SSN LAW Prohibits

Requiring an individual to use an SSN to access a web site unless a password or unique identifier is used

Printing an SSN on any materials that are mailed unless required by state of federal law


CALIFORNIA SSN LAW Exempts

Applications and forms Governmental agencies Annual disclosures for

noncompliant use if•Use is continuous •give annual disclosure to stop use•Written request to stop is done within

30 days


CALIFORNIA PROPOSED LEGISLATION ON PRIVACY

California Financial Information Privacy Act Requires financial institutions to provide

specified forms to consumers about sharing nonpublic consumer information

Requires• Consent before sharing of nonpublic consumer

information• Financial institutions not to deny services or

products because they have not consented


THANK YOU!

YOUR LOGO HERE

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Documents

dowith personal information

credit card statements

credit card bills

credit cards

credit card issuers

telemarketing telemarketing

federal law

experian information