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NAID Article Appears in Debt Collectors Association Journal

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An article written by NAID Executive Director Bob Johnson will appear in next month’s edition of the California Association of Collectors Journal, the association of collection agencies in the country’s most populace state.

An excerpt from the article reads . . .

"For many reasons, companies and individuals involved as third parties in the collection of debt are among the most vulnerable to the regulations regarding the disposal of discarded personal information.

First of all, companies involved in collections are most often acting as an agent of the company originally entrusted with the personal information. If a breach is discovered, it not only implicates and jeopardizes the collection agency, but also their client.

Second, collection agents would most likely qualify under any of the current regulatory definitions of "data brokers," which means they have in their possession the personal information of thousands of people at any one time. This is important because as "data brokers" collection agents will be held to the highest expectations regarding their responsibility to protect personal privacy and will suffer the severest penalties if breaches of privacy protection regulations are discovered.

Lastly, as a third-party agent to the organizations to which the information was originally entrusted, collection agencies are subject to comply with all the same regulations governing those business sectors."

The remainder of the article describes various regulations, as well as policy recommendations for promoting employee compliance.