If you collect, store or share non-public information from customers such as Social Security numbers, and/or banking information… or if you have customers complete a credit application and/or forms containing non-public information, you or your 3rd party service providers run credit and/or background checks and handle debt collection for your business, you MUST comply with this Federal Law or be subject to significant fines and penalties!

Federal Trade Commission - The FTC is also authorized to bring enforcement actions in federal court for violations. In some cases, the FTC may bring an action for up to $2,500 in penalties for each independent violation of the rule.

State Enforcement - The states are also authorized to bring actions on behalf of their residents and may recover up to $1,000 for each violation. In addition, the states may recover its attorneys’ fees if successful in such action.

Civil Liability - Each consumer may be entitled to recover actual damages sustained from a violation. This could be very large and consumers may be able to bring a class action suit seeking potentially massive damages. In addition, successful plaintiffs may recover reasonable attorneys’ fees.

Here is a brief listing of businesses that must be compliant...

 

Healthcare Providers

Hospitals, Healthcare Facilities, Chiropractors, Mental Health Facilities, Hospice Assisted Living, Dentist and Facilities, Nursing Homes, Medical Centers, Eyewear and Optometrist, Physicians

Educational

Private Schools, Universities, Colleges

Motor Vehicle Industry

Automobiles, Motorcycles, Marine, Recreational Vehicles, Motor Sport, Air Craft

Utilities, Government

Utilities, Telecommunications, Municipalities

Financial Institutions

Banks, Credit Unions

 

Retailers

Deferred Payment Providers

Payday Loans, Check Cashiers

& MORE!

Information published on this site is of general applicability and is not intended to be relied on as a complete and accurate interpretation of the law for any person or entity.  By virtue of this publication, we are not providing legal, accounting or other professional advice for specific companies or financial institutions.  Please consult your legal or compliance adviser before taking any action on information contained herein.