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Federal Trade Commission Issues First Diposal Rule Fine

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Today, the FTC has announced that it has fined a mortgage company that left loan documents with consumers’ sensitive personal and financial information in and around an unsecured dumpster. The FTC’s complaint alleges that Northbrook, Illinois-based American United Mortgage Company violated the Disposal, Safeguards, and Privacy rules by failing to properly dispose of credit reports or information taken from credit reports, failing to develop or implement reasonable safeguards to protect customer information, and not providing customers with privacy notices.

The FTC alleges that the company failed to implement reasonable policies and procedures requiring the proper disposal of consumers’ personal information, including consumer reports; to take reasonable actions in disposing of such information; and to identify reasonably foreseeable internal and external risks to consumer information.

The company also allegedly failed to develop, implement, or maintain a comprehensive written information security program.

Click here to read the complete FTC release.