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Jamci
3 Posts |
 Posted - 05/22/2008 : 09:16:32 AM
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Is a a financial privacy violation when a loan officer leave a company and "steals" the database from the company he's leaving?
We've recently had a loan officer leave. We basically consolidated offices and he wasn't happy so he left and started a net branch. He took a couple of employees with him too. Basically, we've been getting phone calls from past borrowers saying they've received a post card from him saying he's left the company and is working for a new company and saying to tear up anything with our name on it and give him a call. It is very unprofessional looking and sounding but is it a violation? |
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GianniD
125 Posts |
Posted - 05/22/2008 : 09:24:08 AM
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quote:
Originally posted by Jamci
Is a a financial privacy violation when a loan officer leave a company and "steals" the database from the company he's leaving?
We've recently had a loan officer leave. We basically consolidated offices and he wasn't happy so he left and started a net branch. He took a couple of employees with him too. Basically, we've been getting phone calls from past borrowers saying they've received a post card from him saying he's left the company and is working for a new company and saying to tear up anything with our name on it and give him a call. It is very unprofessional looking and sounding but is it a violation?
The way I understand it, those clients 'belong' to the company, so, if he is in possession of any of their information, its a violation.
However, a case can be made that he is allowed to follow up with his own clients.
Me, I'd say if he was contacting his own clients, no big deal. If he was contacting the clinets of other LO's, its time for a C&D letter. |
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Jamci
3 Posts |
Posted - 05/22/2008 : 09:57:38 AM
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I believe that the client "belongs" to the company since the loan was originated under the company name and the LO is paid by the company. Once he leaves the "company" to start up or work for another, then those clients are no longer his.
I know this happens all the time. I'm not angry that he contacted the borrowers (I expected it) But it was the content of the correspondence. It sounds disparaging, and he even used our name. He also contacted borrowers of other LO....including mine.
He's getting a certified letter from our attorney today. |
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jmcclain81
67 Posts |
Posted - 05/22/2008 : 10:26:02 AM
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| I had this issue come up with an employee that I fired when I worked at a retail branch. Our attorneys basically said that the customer belongs to whomever brought the lead in. Therefore, we sued the employee over leads that we had given to him but he was able to do whatever he liked with the referral business that he brought in |
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jmcclain81
67 Posts |
Posted - 05/22/2008 : 10:40:57 AM
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No. My last name is McClain with an L.
But that's the 2nd time I've been asked that question today. |
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Jamci
3 Posts |
Posted - 05/22/2008 : 10:44:16 AM
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Well, he's basically contacting the whole database (not only his clients) I received a phone call today from a past client who received his postcard. He not only copied the names & addresses, but he basically copied the borrower information screen in Calyx Point.
I'm getting pretty pissed. It obviously went out this week because the phone is ringing off the hook today. |
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BobbyBouchee
89 Posts |
Posted - 05/22/2008 : 11:00:35 AM
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Contact your attorney who handles your settlements and ask him for a refferal. I would also try to the local D.A. about the theft of information. Do you have telemarketers? If so, have them start calling your past clients hopefully before he does to give them the heads up-I would be concerned about what other info he stole such as personal information. Who knows what data he has-this would be a serious concern. Maybe he will resort to selling people's identities-maybe that would perk the D.A. up enough to at least let the thief know whats up.
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scottanthony
2990 Posts |
Posted - 05/22/2008 : 12:24:56 PM
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| If he took your database, that's theft. Call your lawyer. If he profits from any of those stolen clients, you may be entitled to additional damages. Doesn't sound like it would take too much to shut him down completely. |
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broker
85 Posts |
Posted - 05/22/2008 : 12:59:49 PM
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The topic is Privacy Violation so lets get the 2 issues defined here:
1. Ex employee steals Company information and then uses it for his business. The Company can go after the ex employee.
2. An individual has a privacy violation. The individual can:
a) go after the Company for not safeguarding their personal information.
b) go after the ex employee. |
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