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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
2003 NCHELP Debt Management Conference
What personal information would be used for identity
theft?NameBirth-dateSocial Security NumberCredit Card informationOther piece of personal information
(check stub, receipts, etc.)
2003 NCHELP Debt Management Conference
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).
2003 NCHELP Debt Management Conference
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.
2003 NCHELP Debt Management Conference
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.
2003 NCHELP Debt Management Conference
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.
2003 NCHELP Debt Management Conference
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.
2003 NCHELP Debt Management Conference
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.
2003 NCHELP Debt Management Conference
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”.
2003 NCHELP Debt Management Conference
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.
2003 NCHELP Debt Management Conference
Reference informationEquifax Credit Bureau, Fraud1-800-525-6285
Experian Information Solutions1-888-397-3742
Trans Union Credit Bureau, Fraud1-800-680-7289
2003 NCHELP Debt Management Conference
Reference informationSocial Security AdministrationFraud Hotline1-800-269-0271
Federal Trade Commission1-877-IDTHEFT
U.S. Postal Service (Local Post Office)
2003 Debt Management Conference
THANK YOU!
2003 Debt Management Conference
Privacy v. Technology (again):
Compliance with ADAD Laws
Lawrence A. LaskeyV.P., CounselVan Ru Credit Corporation
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
“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
2003 NCHELP Debt Management Conference
“Oldies but Goodies” Statutory Requirements
FERPA, FDCPA, etc. The “federal alphabet” rules
“Common law” Invasion of privacy Emotional distress Trespass
2003 NCHELP Debt Management Conference
And, More Recently… GLB HIPAA Calif. SSN Still, workable if
obtain, use and disclose for proper purpose
notification/permission However, a third concern
2003 NCHELP Debt Management Conference
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”
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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”
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
“Who’s On First?” Some impose no new
requirements
Others apply, with added rules
… and some don’t really know
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
Another fine mess… Definitions start with
Federal “random or sequential” Add “ability to store/dial”
Ill-defined exemptions for “established” relationships
“Information solicitation” (?)
2003 NCHELP Debt Management Conference
Another fine mess…
State penalties and enforcement
FDCPA “bootstrap” potential
Disclosure conflicts
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
Increase costs Compliance with multiple laws Disconnect requirements Line release capabilities/timing Call “scrubbing” Staffing Permits. Etc. Lawyers
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
Call…waiting
Regulatory administration Permits Registration Telecom consent
2003 NCHELP Debt Management Conference
“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?
2003 NCHELP Debt Management Conference
“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
2003 NCHELP Debt Management Conference
What Can We Do? Be aware of the rules Focus on cost effective
compliance Change/clarify/exempt
State level Federal pre-emption
2003 Debt Management Conference
THANK YOU!
2003 Debt Management Conference
PRIVACY LAWS AND GUARANTORS
Pablo S. SalasLitigation AttorneyColorado Student Loan Program
YOUR LOGO HERE
2003 NCHELP Debt Management Conference
“Oldies but Goodies” Privacy Act FERPA RFPA FDCPA FCRA FTC
2003 NCHELP Debt Management Conference
The New and Improved Federal and State Law
GLB Id Theft Assumption and Deterrence
Act California SSN Law California’s proposed Privacy Act
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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”.
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
GRAHM-LEACH BLILEY ACT May disclose information with
affiliates Limits the sharing of account
information for marketing purposes
2003 NCHELP Debt Management Conference
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)
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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
2003 NCHELP Debt Management Conference
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
2003 Debt Management Conference
THANK YOU!
YOUR LOGO HERE