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$25 Million Fine for Moving LO Database to New Company

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Here is the info my friend sent me:

“Personal information” is broadly defined under the CCPA to mean “information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household.”  Sec. 1798.140(o)(1).  Some of the listed examples of “personal information” under the CCPA are:

  • Identifiers such as a real name, alias, postal address, unique personal identifier, online identifier, Internet Protocol address, email address, account name, social security number, driver’s license number, passport number, or other similar identifiers;
  • Biometric information;
  • Internet or other electronic network activity information, including, but not limited to, browsing history, search history, and information regarding a consumer’s interaction with an Internet Web site, application, or advertisement;
  • Geolocation data;
  • Audio, electronic, visual, thermal, olfactory, or similar information;
  • Professional or employment-related information; and
  • Inferences drawn from any of the information identified in this subdivision to create a profile about a consumer reflecting the consumer’s preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes.

Nonpublic Personal Information (“NPI”) is defined as: “(i) personally identifiable financial information; and (ii) any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived using any personally identifiable financial information that is not publicly available” (including for example, lists of customer names and street addresses if they were associated with account information). 12 C.F.R. § 1016.3(p)(1).



additional comments on
"$25 Million Fine for Moving LO Database to New Company"

  1. Bob says:

    Great information.

  2. somedude says:

    I seen this coming in 2012. not surprised at all. you get bank lawyers and lobbist in the same room, it will never work out good for the sale person…

  3. I can see an industry opening up where you can give a list of client names to a data company, and they mine the public info for you. Then you could prove the info came through public sources. This policy is so unjust for LO’s, but will be great for company retention. You won’t be able to afford to change from one company to another!

  4. Karen Deis says:

    I have been advising LO’s for years that the discussion regarding who owns the database and what can be transferred be a discussion with the company and it be part of their employment contract, with very specific terms and conditions on who owns what information. However, i do agree that the SS and private info NOT be transferred to the new company–only the contract info and information that can be found on recorded documents that can be accessed publicly.

  5. Noel Cookman says:

    This is why I never agree to use the mortgage company’s email address when onboarding. I keep my proprietary domain and website and email. My marketing is not directly to the end user (borrower) but to the potential referral partner (lead source). Thus, my database is not of mortgage applicants but of clients who need consulting. This model will not work for everyone. And I’m sure the govt will find a way to criminalize what I do at some point.

    President Trump, keep on deregulating until the whole damn system has been remade from the current mercantalist-monopolist cabal of bankers to a true free market, capitalist system.

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