Netflix Accused of Holding Customer Credit Information

Five former Netflix users are suing the popular movie rental website, saying that it kept consumer information, like credit card numbers and rental records, after customers canceled their accounts.

The lawsuits, filed in the U.S. District Court for the Northern District of California, accuse Netflix of violating the Video Privacy Protection Act, which prohibits the “wrongful disclosure of video tape rental or sale records.”

One complaint accuses the company of “collecting, storing and maintaining for an indefinite period of time, the video rental histories of every customer that has ever rented a DVD from Netflix,” according to cnet.com.

Credit-Land.com reporter could not get a statement from Netflix as their representatives declined to comment. If the accusations are proven true, this poses a security threat to consumers’ credit card information. It is not clear what Netflix is doing with the credit card information, but collecting users’ viewing data helps to create the algorithms that recommend movies they might enjoy.

Here are some Credit-Land.com tips on how to keep your money safe over the Internet:

1. Check website hits and viewer feedback to determine if you are dealing with a reputable bank or merchant.

2. Don’t give your personal information to strangers.

3. Be wary of inputting personal information in suspicious online forms, as they could be phishing schemes designed to get your personal information.

4. Check and see if the bank or merchant offers insurance for lost or stolen money.

5. Make sure you have a secure Internet connection when purchasing online.