Tuesday, May 06, 2008

LendingTree Sues over Data Breach

Two former Vice Presidents of LendingTree are alleged to
have stolen customer passwords which subsequently allowed
up to 5 home loan lenders to gain unauthorized access to
sensitive consumer information which could be used for
identity theft.

According to the LA Times article concerning Monday's
lawsuit filing by LendingTree:

Named as defendants in the lawsuit are
Newport Lending Corp., related company
Southern California Marketing, Sage Credit Co.,
Chapman Capital Inc. and Home Loan Consultants.


LendingTree accuses the firms of computer fraud
and of using consumer records -- including Social
Security numbers and income and employment
information -- to offer loans to its customers.


As a result, LendingTree was forced to send out
letters recently to its customers alerting
them to the potential for identity theft.

Those effected submitted loan-qualification data
between October 2006 and early this year.

While it was not disclosed exactly how many consumers
would receive the warning letters from LendingTree,
the number could reach into the millions as the firm
has processed over 23 million loan applications
since 1998 according to the LA Times.

Even LendingTree, on their company website, warns
consumers of the inevitable unsecure nature of data
and the need to take proactive steps to protect it:

"...although we take steps to secure your information,
we do not promise, and you should not expect, that
your personal information, searches, or other
communications will always remain secure. Users
should also take care with how they handle and
disclose their personal information."

So, our tip for today is for any consumers who have
utilized LendingTree's on-line loan application process
during the period of October, 2006 through March of
this year. Contact LendingTree immediately if you
suspect your personal data has been part of the group
which was compromised during this time period.

LendingTree can be reached toll free at

1-800-555-TREE

Contact Us Form

Company Chat Agent

Finally, please let a friend or associate know of this
important development in the war against identity
theft
and unauthorized access to sensitive personal
information.

5 Comments:

At 5:57 PM, Anonymous rambo said...

So does anyone else see that
its a big problem that our
personal information is bought
and sold just like cattle at
the auction block to the
highest bidder?

The nerve of Lending Tree
to not sue their ex-employees
who initiated this mess.

 
At 6:12 PM, Anonymous Anonymous said...

I think I read somewhere else on the internet that IAC (Lending Tree's corp. parent) is looking to sell off that division.

Looks like they're getting out of that business before the counter suits from all those negatively impacted consumers.

More mess from the mortgage loan party of the 90's.

 
At 11:37 AM, Anonymous Experts on Credit said...

I agree with Rambo. What a catastrophe!

 
At 9:09 AM, Anonymous Anonymous said...

I think it is time we understand that we have to take control of our own lives. Our credit is a major asset to ourselves and others, as such we must protect it. I use the services of Myjunktree. I stopped all teh credit card offers, a major threat according to teh FBI and I use thier site to get my credit report. They recommend that you obtain one every four months, and they remind me when to order my report. I use thier site to obtain my free report and make sure no changes are being made. As a bonus they helped me stop all the junk mail that came to my home.

 
At 6:20 AM, Anonymous My Personal Finance Blog said...

Lol its catastrophe.

 

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