Question

In the fall 0f 2008 Countrywide Morgage Corporation announced that the private information for thousands of their customers, including social security numbers and loan numbers, had been compromised. Countrywide offered these customers a free 2-year subscription to a credit protection service. Should this action shield Countrywide from customer lawsuits? Could Countrywide do more? Should they? Given that it was a Countrywide employee who sold the data, does this change Countrywide's responsibilities toward the affected customers? Explain why or why not.

Answer in 3 paragraphs.

Answer 1

ANSWER:-

• In fall of 2008, Countrywide Mortgage Corporation announced that the private data for their customers, social security numbers and loan numbers had been compromised. No, this action shield countrywide from customer lawsuits.
• The compensation will depend on the case basis. Some public might have incurred heavy damages. There is also the issue of punitive damages for countrywide. Countrywide Mortgage Corporation should atleast start by giving them direct cash compensation and create a separate committee to hear any grievances.
• Yes, I think they should. If a countrywide employee sold the information, this makes them more libel to lawsuits. They should offer more compensation to customers, maybe even clear some part of the customer’s loan. In the previous case countrywide was not directly responsible for the leak, it came out of an illegal activity. In the second case countrywide employee leaked the information which makes them directly responsible.