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44 Attorneys General Reach Settlement With Choicepoint

May 31, 2007

Forty-four Attorneys General* reached a settlement with Choicepoint, resolving allegations that the company failed to adequately maintain the privacy and security of consumers? personal information. In 2005, ChoicePoint, a provider of identification and credentialing services, announced that thieves, posing as legitimate businesses, gained access to consumers? personally identifiable information. In January 2006, ChoicePoint settled a separate action with the Federal Trade Commission and paid $5 million into a pool to be used for consumer restitution, which required ChoicePoint to improve how it accepts clients that obtain information from credit reports. The settlement with the states goes beyond the FTC settlement and requires ChoicePoint to improve its credentialing process for clients that obtain Social Security numbers. Among other requirements in the states? agreement, ChoicePoint must perform audits, including independent audits, to make sure that it is properly identifying those individuals or businesses requesting information.

* States participating in the settlement are Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia, Wisconsin and the District of Columbia.

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