Texas AG cracks down on lender for ID theft exposure

Texas Attorney General Greg Abbott says Ohio-based CNG Financial Corporation and subsidiaries Check ‘n Go of Texas Inc. and Southwestern & Pacific Specialty Finance Inc. have been systematically exposing their customers to the risk of identity theft. The AG’s office filed legal action against the companies that accuses Check ‘n Go of violating the law by repeatedly failing to protect customer records that contain sensitive personal information.

The legal action taken against Check ‘n Go is the sixth such action the AG’s office has taken against business operating in Texas in recent weeks.

The AG alleges that Check ‘n Go stores across Texas exposed customers’ personal identifying information by discarding business records in easily accessible trash cans behind the stores. According to investigators, the records included numerous documents containing customers’ names, addresses, Social Security and loan information, including several federal truth-in-lending disclosure statements.

The defendants are accused of violating the Texas Deceptive Trade Practices Act (DTPA) and the 2005 Identity Theft Enforcement and Protection Act, which requires the safeguarding and proper destruction of clients’ sensitive personal information. Under the law, the attorney general’s office has the authority to seek penalties of up to $20,000 per violation of the DTPA and $50,000 per violation of the Identity Theft Enforcement and Protection Act.

The AG also charged Check ‘n Go with violating Chapter 35 of the Business and Commerce Code, which requires businesses to develop retention and disposal procedures for their clients’ personal information. The law provides for civil penalties of up to $500 for each abandoned record.

More information on the AG’s action can be found online at www.oag.state.tx.us.

Topics Trends Texas Fraud