Under the Fair and Accurate Credit Transactions Act (FACTA), what is the most appropriate action for a car dealer holding a paper folder of customer credit reports?
Under the Fair and Accurate Credit Transactions Act (FACTA), what is the most appropriate action for a car dealer holding a paper folder of customer credit reports?
Under the Fair and Accurate Credit Transactions Act (FACTA), specifically the Disposal Rule, entities such as car dealers that hold customer credit reports must dispose of them in a manner that prevents unauthorized access and misuse of the data. This typically involves shredding paper documents containing consumer information to ensure that the information cannot be read or reconstructed. Therefore, the most appropriate action for a car dealer holding a paper folder of customer credit reports is to follow the Disposal Rule by having the reports shredded.
The answer should be A: "The Disposal Rule requires any individual or entity that uses a consumer report, or information derived from a consumer report, for a business purpose to dispose of that consumer information in a way that prevents unauthorized access and misuse of the data. Consumer reports can be electronic or written. The rule applies to both small and large organizations, including consumer reporting agencies, lenders, employers, insurers, landlords, car dealers, attorneys, debt collectors, and government agencies." and "Examples of acceptable, reasonable measures include developing and complying with policies to: Burn, pulverize or shred papers containing consumer report information so that the information cannot be read or reconstructed Destroy or erase electronic files or media containing consumer report information so that the information cannot be read or reconstructed Conduct due diligence and hire a document destruction contractor to dispose of material specifically identified as consumer report information consistent with the rule"
The correct answer is A.
The answer is A
https://www.shrednations.com/articles/facta-compliance/ Proper Disposal of Sensitive Information Lastly, FACTA requires creditors and financial institutions to take “reasonable measures to protect against unauthorized access to or use of consumer information” by means of proper disposal. To ensure private information is not compromised it required that reasonable steps be taken to destroy private information beyond a doubt before it leaves the hands of any financial institution.
Correct answer is A
the answer is A
The Disposal Rule requires any individual or entity that uses a consumer report, or information derived from a consumer report, for a business purpose to dispose of that consumer information in a way that prevents unauthorized access and misuse of the data. Consumer reports can be electronic or written. The rule applies to both small and large organizations, including consumer reporting agencies, lenders, employers, insurers, landlords, “CAR DEALERS”, attorneys, debt collectors, and government agencies.
Disposal” includes any discarding, abandonment, donation, sale or transfer of information. The standard for disposal requires practices that are “reasonable” to protect against unauthorized access to or use of the consumer data. Factors to consider include the sensitivity of information being disposed of, the costs and benefits of various disposal methods, and available technology. Examples of acceptable, reasonable measures include developing and complying with policies to: Burn, pulverize or shred papers containing consumer report information so that the information cannot be read or reconstructed. Destroy or erase electronic files or media containing consumer report information so that the information cannot be read or reconstructed. Conduct due diligence and hire a document destruction contractor to dispose of material specifically identified as consumer report information consistent with the rule