NEW YORK, NY (March 7, 2007) -
Attorney General Andrew M. Cuomo today announced a settlement affecting nearly 400 New York consumers whose credit reports were unlawfully accessed by an insurance company. Under the settlement, Administrators for the Professions, Inc. (AFP), a New York insurance company, is paying $229,600 in compensation to those consumers.
Between November 2000 and March 2006, AFP obtained more than 800 consumer credit reports on approximately 400 different individuals from the credit reporting agencies Equifax and TransUnion. An overwhelming majority of the consumers' credit reports were acquired for purposes not permitted by the federal and state Fair Credit Reporting Acts.
Credit reports may be legally obtained by agents such as potential credit grantors, employers, or insurers, or with a consumer's permission. AFP, however, illegally provided credit reports for use as investigative tools in civil litigation, for use in connection with insurance claims, and for satisfying requesters' personal curiosity. Credit reports were also unlawfully attained for investigators trying to locate parties in matrimonial and other personal matters, and for individuals looking to acquire information about an estranged spouse.
Attorney General Cuomo said, "Companies with access to a consumer=s credit report must be vigilant in ensuring that such access is not abused or used unlawfully. Consumers' privacy must be protected, and the integrity and confidentiality of a consumer=s credit report must be preserved."
