Proper Disposal of Consumer Report Info
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There’s a certain satisfaction to shredding a big stack of documents. But the federal government didn’t make the Disposal Rule for your own enjoyment. This regulation deals with how to burn, pulverize or shred papers properly. Have a hard drive? Be sure to wipe or destroy those files for your company’s safety!
In an effort to protect the privacy of consumer information, reduce the risk of fraud and identity theft and prevent your company from nasty employment practices liability claims, the federal government created the Disposal Rule. This legislation requires businesses to take appropriate actions to dispose of sensitive information derived from consumer reports to safeguard against identity theft crimes. According to the Federal Trade Commission (FTC), organizations and individuals covered by the Rule can determine what disposal measures are reasonable, based on the sensitivity of the information, the costs and benefits of different methods and changes in technology.
Who Must Comply?
The Disposal Rule applies to individuals and organizations of various sizes that use consumer reports. The following professionals must comply with the rule:
- Consumer reporting companies
- Government agencies
- Mortgage brokers
- Automobile dealers
- Attorneys and private investigators
- Debt collectors
- Those who obtain credit reports for prospective nannies, contractors or tenants
- Entities that maintain information within consumer reports as part of their role as a service provider to other organizations
What Information Is Covered in the Disposal Rule?
The Disposal Rule applies to all information found within consumer reports. According to the Fair Credit Reporting Act, consumer reports includes information obtained from a consumer reporting agency that is used (or expected to be used) in establishing a consumer’s eligibility for credit, employment or insurance. This may include credit scores, check writing history, insurance claims, tenant history and medical history.
If you’re concerned with the privacy of the records you have on file, contact an ‘A’ Team member today.
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