The federal government paid out more than $750,000 to avoid a class action lawsuit after personal information was stolen from a Canada Revenue Agency office.

The theft of six computers from the Tax Services Office in Laval, Que., on September 4, 2003 jeopardized the personal information of 120,000 people.

“The purpose of the settlement was to compensate for the inconvenience caused to the class action members who took certain steps to limit the risk of their information being used without their consent,” said Philippe Brideau, spokesman for the Canada Revenue Agency.

The out-of-court settlement saw 1,401 people awarded $150 and another 2,708 awarded $200 each as compensation for time spent contacting Equifax or Trans Union to have notes placed on their credit record indicating their personal information had been compromised.

The total payout cost the taxpayer $751,750.

In 2008, an audit of security of CRA offices slammed the agency for repeatedly failing to maintain adequate security at seven offices in Quebec and Ontario.

The audit found combination locks, keys and access cards were not adequately secured, doors were not locked properly and electronic alarm systems were defective, unarmed or missing.

peter.zimonjic@sunmedia.ca