AUSTIN, June 25, 2008 - Texas Attorney General Greg Abbott has reached an agreement with two Austin companies that will protect Texans from identity theft. The settlement resolves the state’s May 2007 enforcement action against EZMONEY, L.P. and EZPAWN L.P., which were charged with violating state laws governing the disposal of customer records containing sensitive personal information. Under Texas law, vendors must take specific precautions before discarding documents that include customers’ bank accounts, driver’s license and Social Security numbers.

Today’s agreed final judgment requires that EZMONEY and EZPAWN overhaul their information security program and pay $600,000 to the State of Texas, which will help fund future identity theft investigations.

“Today’s agreement protects Texans from identity theft and ensures that the defendant will comply with important laws governing the disposal of sensitive customer information,” Attorney General Abbott said. “Recognizing that identity theft is one of the state’s fastest growing crimes, the Texas Legislature enacted legislation to ensure that customers’ sensitive information is protected from identity thieves. The Office of the Attorney General will continue cracking down on identity theft.”

Under the agreement with the state, EZMONEY and EZPAWN must implement a new training program to inform its Texas employees about the companies’ enhanced information security procedures. The employee training program must provide employees with a review of the companies’ privacy procedures and a review of state laws governing the disposal of customer records. Today’s agreement requires that the training program explain identity theft, its costs to individual customers, and the importance of abiding by the company’s newly implemented document disposal protocol.

To further assure that employees comply with the protocol, each EZPAWN and EZMONEY store must post signs explaining records storage and disposal requirements. The companies must conduct unannounced compliance checks at all of its stores every six months and provide annual training to its employees, which will help ensure customers’ personal information is protected.

Investigators with the Office of the Attorney General discovered that several San Antonio EZPAWN stores improperly discarded business records. Documents containing sensitive customer information were found in easily accessible trash receptacles behind EZPAWN stores. According to investigators, the records included promissory notes and bank statements that contained names, addresses, Social Security and driver’s license numbers, and checking account information.

Investigators also found evidence of improper document dumping at a dozen other EZPAWN locations around the state, including locations in Houston, San Antonio, Austin, Lubbock and the Rio Grande Valley. In all, investigators found evidence that 483 individual customers’ records were improperly discarded.

Although the investigation revealed no confirmed incidents of personal information being misused, customers who interacted with EZPAWN stores should carefully monitor bank, credit card and any similar financial statements for evidence of suspicious activity. All EZPAWN customers should also annually obtain free copies of their credit reports to guard against this growing crime.

Consumers who wish to file a complaint may contact the Office of the Attorney General at (800) 252-8011 or do so online at www.texasattorneygeneral.gov, where they can also obtain information on identity theft detection and prevention.

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