Antitrust Law Daily Wrap Up, PRIVACY NEWS: Brokers must inform 70K consumers of personal information posted online, (Nov 14, 2014)

By Greg Hammond, J.D.

Bayview Solutions, LLC and Cornerstone and Co., LLC have been ordered by the federal district court in Washington, D.C. to inform over 70,000 consumers that their sensitive personal information has been posted online (FTC v. Bayview Solutions, LLC, File No. 142 3226, Case No. 1:14-cv-01830) and (FTC v. Cornerstone and Co., LLC, File No. 142 3211, Case No. 1:14-cv-01479 (RC)).

According to the FTC’s complaints against Bayview and Cornerstone, the two debt brokers allegedly posted sensitive personal information of thousands of consumers on a public website that can be accessed by anyone with an internet connection. Specifically, the companies purportedly posted Excel spreadsheets containing significant information about consumers’ debt, their first name, date of birth, city, state, consumers’ email addresses, employer name, name of consumers’ banks, consumers’ full bank account numbers and bank routing numbers, and consumers’ driver’s licenses.

“Debt brokers and collectors who play fast and loose with people’s sensitive personal and financial information are causing tremendous harm,” stated FTC Bureau of Consumer Protection Director Jessica Rich. “Companies must treat sensitive consumer information with appropriate care and security, and the FTC will take action when they fail to do so.”

Bayview stipulated to entry of preliminary injunction and the court issued preliminary injunction against Cornerstone. According to both preliminary injunctions, the debt brokers: (1) are prohibited from disclosing any protected information without reasonable safeguards; (2) must take down any protected information that is currently online; and (3) must notify consumers whose protected information the companies disclosed without using reasonable safeguards.

Attorneys: Gonzalo E. Mon (Kelly Drye & Warren LLP) for Bayview Solutions, LLC. Thomas J. Widor for the FTC.

Companies: Bayview Solutions, LLC; Cornerstone and Co., LLC

News: Privacy ConsumerProtection FederalTradeCommissionNews