Several Check 'n Go stores exposed customers to identity theft by discarding business records in easily accessible dumpsters.

Sample of actual checks with sensitive information found in a dumpster. Sections redacted by Texas AGs office.

In a settlement reached Thursday with Texas Attorney General Greg Abbott, Check 'n Go will pay $220,000 and will overhaul its information security program after several locations were caught disposing of sensitive customer information in publicly accessible dumpsters.

There have been several reported instances of similar problems at Rent to Own stores in the past 12 months. Improper disposal of sensitive records exposes customers to identity theft risk and companies to massive legal consequences.

According to the Attorney General, the records disposed by Check 'n Go included financial records and bank statements that contained names, addresses, Social Security and driver’s license numbers, and checking account information.

Under an agreed final judgment obtained by the Attorney General, Check 'n Go will overhaul its information security program. The program must be fully documented in writing and contain administrative, technical and physical safeguards designed to protect the personal information of Check 'n Go customers. The cash settlement will be used for the investigation and prosecution of future identity theft cases, pursuant to the Identity Theft Enforcement and Protection Act.

"Today’s agreement ensures that Check 'n Go stores will implement new procedures to prevent identity theft," Attorney General Abbott said. "In 2005, the Texas Legislature enacted an important law to help curb one of the nation’s fastest growing crimes. The Office of the Attorney General will continue working to prevent identity theft by aggressively enforcing laws that protect customers’ confidential information."

Under its agreement with the state, Check 'n Go must implement a new training program to inform its Texas employees about the company’s enhanced information security procedures. The employee training program must provide employees with a review of Check 'n Go’s privacy procedures as well as state laws governing the disposal of customer records. The training program also must explain how identity theft harms individual consumers and businesses and the importance of abiding by the company’s disposal program.

Under the new procedures, the defendants must designate an employee from its corporate office to oversee compliance with privacy protection laws. Store employees must be allowed to anonymously report any failures to comply with the program to the designated corporate-based employee. For two years, the compliance representative must forward a sworn statement to the Office of the Attorney General certifying that Check 'n Go has instituted and satisfied the required employee training.

To further assure that employees comply with the program, each Check 'n Go store must post signs explaining proper records storage and disposal procedures. Today’s judgment also requires Check 'n Go to conduct unannounced compliance checks at each of its stores every six months.

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

Today’s legal action is the latest in a series of efforts by Attorney General Abbott to combat identity theft in Texas, which the FTC ranks second in the nation for reported incidents of the crime. In 2007 and 2008, the Attorney General filed several enforcement actions against vendors that carelessly and unlawfully disposed of their customers’ confidential records. The state’s enforcement actions charged the defendants, including a national health services provider, with violating a 2005 law that requires vendors to protect records that might include Social Security and bank account numbers.