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More than 1,400 identity theft victims will be receiving reimbursement claims forms from the Federal Trade Commission to cover out of pocket expenses incurred as a result of security breaches at ChoicePoint Inc.
ChoicePoint is a data broker that collects and sells personal information. Last year, the company announced that it had sold consumer information to individuals later found to be identity thieves.
As part of a settlement with the FTC, ChoicePoint has agreed to pay $5 million to reimburse consumers for identity theft-related expenses caused by the security lapse.
What Consumers Should Know
Consumers who receive a letter from the FTC and would like to be reimbursed for and out-of-pocket expenses related to identity theft should return the claim form immediately. Those who do not receive the letter but believe they have incurred expenses related to the ChoicePoint identity theft can complete the form on the FTC website.
The FTC is requiring that all claims be postmarked by February 4, 2007. The amount of reimbursement will be determined by the total number of claims filed as well as by the amount of each claim.
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Consumer fraud class action lawsuits are specifically designed to help individuals who have been similarly aggrieved to pursue a common goal – namely to hold the deceptive business accountable for any damages suffered. Thus, consumers who have been defrauded by a corporation or other entity may file a consumer fraud class action lawsuit on behalf of themselves and others to seek compensation for their shared grievance.
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