The FTC has filed a complaint against First Interstate Mortgage Corporation ( FIM ) and Nevada One Corporation ( Nevada One ) for failure to shred. The companies owned by one group contracted with customers to maintain personal information under FACTA. However, 40 boxes of personal information covered under the contract and FACTA were later found in a dumpster. The case now moves to U.S. the District Court for Nevada.

It appears that you can add the FTC to the local media, and the Texas AG as people out to get companies who fail to protect their customers with document destruction programs.

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Authorities in DC have discovered a dumpster full of real estate transactions. The documents contained bank information, salary information and Social Security numbers. It is unknown who dumped the boxes but the company that owned them is no longer in business.

What is becoming obvious is that the mortgage crisis is driving many mortgage companies into bankruptcy. When this happens all their customer's personal information in the trash for the world to discover. Lets hope the mortgage crisis doesn't end up starting an identity theft crisis.

E.F. Mortgage of Portage recently went out of business and left all of their customers information in the trash. The only solution is for bankruptcy officers and courts to allow business to shred sensitive information. Unfortunately, this comes on the back of the businesses creditors. The good news is the secure shredding of the documents is only a small amount.

There is a hidden victim to the mortgage fallout. As mortgage brokers go out of business they are not taking care of all their past customers. Here is the latest example out of Denver, where a mortgage broker goes broke and simply dumps their files.

Lets hope that bankruptcy courts let failed businesses use some capital to protect their employees. The other option would be a requirement that when businesses are evicted the landlord is required to properly dispose of all the files inside.