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#276762 - 11/18/04 07:27 PM Final Reg - Records Disposal
OnTheEdge Offline
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Joined: Apr 2002
Posts: 1,677
SmallTown, USA
For Release: November 18, 2004
FTC Issues Final Regulation on Consumer Information and Records Disposal----- http://www.ftc.gov/
Last edited by OnTheEdge; 11/18/04 07:28 PM.
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#276763 - 11/18/04 07:41 PM Re: Final Reg - Records Disposal
ahou Offline
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ahou
Joined: Aug 2002
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Thanks:)
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#276764 - 11/18/04 08:29 PM Re: Final Reg - Records Disposal
Nanwa Offline
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Nanwa
Joined: Oct 2001
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Clintonville, WI, USA
Umm, does shredding the documents and using them for farm animal bedding qualify as proper disposal?
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#276765 - 11/18/04 09:18 PM Re: Final Reg - Records Disposal
Snowqueen Offline
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Snowqueen
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Posts: 2,289
dreaming of a warm beach......
Nanwa, it depends on how intelligent the farm animals are because some may be able to read!!!

(Can't you hear an examiner saying that!!!)

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#276766 - 11/18/04 09:26 PM Re: Final Reg - Records Disposal
Reg Wrecker Offline
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Joined: Dec 2003
Posts: 543
Kentucky
Trying to think like an examiner here...."what if a mule were to have an account number stuck to it's foot and then got out of the yard and wondered into town and scraped its foot against a curb that left the account number on it and someone picked it up and....how would your Info Security Program prevent this risk?"
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#276767 - 11/18/04 09:45 PM Re: Final Reg - Records Disposal
Ted Dreyer Offline
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Ted Dreyer
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Quote:

Umm, does shredding the documents and using them for farm animal bedding qualify as proper disposal?




Yes, but only if you use due diligence in selecting the animal and have a contractual agreement with it to maintain security.

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#276768 - 11/18/04 10:00 PM Re: Final Reg - Records Disposal
Peridot Offline
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Joined: Jan 2004
Posts: 119
Rural Minnesota
Quote:

Umm, does shredding the documents and using them for farm animal bedding qualify as proper disposal?




That is so funny...we do the same thing!!! I say this definitely qualifies as proper security measures for the disposal of customer records.

Thanks Nanwa, we all needed a pick me up after beating our heads against the FACT Act wall!!!
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#276769 - 11/18/04 10:15 PM Re: Final Reg - Records Disposal
RR Joker Offline
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The Swamp
Oh Gosh! I guess I'd better rush home and check all of mine's feet!!!!!
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#276770 - 11/23/04 05:25 PM Re: Final Reg - Records Disposal
Anonymous
Unregistered


Yes, but only if you use due diligence in selecting the animal and have a contractual agreement with it to maintain security.




Any thoughts yet on how to comply with the contractual provisions? Are we going to have to re-review all of our contracts again and put in language regarding Disposal of information in those that concern credit report info usage, storage or disposal?

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#276771 - 11/23/04 06:30 PM Re: Final Reg - Records Disposal
HRH Okie Banker Offline
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Joined: Jan 2003
Posts: 3,070
Oklahoma
Uh Oh - somebody just opened another door here. Do ya'll feel the draft?
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#276772 - 11/23/04 06:34 PM Re: Final Reg - Records Disposal
Reg Wrecker Offline
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Joined: Dec 2003
Posts: 543
Kentucky
I do believe that the final Disposal Rules are consistant with GLB Safeguarding Rules (which are more comprehensive and strict than FTC rules). I think as long as you can show your due diligence efforts on GLBA with regards to vendors and your own institution practices, you'll be safe in complying with the FTC guidelines.
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#276773 - 11/23/04 06:35 PM Re: Final Reg - Records Disposal
someone else Offline
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someone else
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back to my roots
I am feeling the draft!!
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#276774 - 11/23/04 08:36 PM Re: Final Reg - Records Disposal
Peridot Offline
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Joined: Jan 2004
Posts: 119
Rural Minnesota
I was hoping the disposal rules under GLB would be sufficient here as well. Has anyone heard anything along these lines? We already have this huge risk assessment document (which addresses customer information all the way to the point of shredding documents), I hate to think that this will no longer be sufficient either! Assuming that compliance under the safeguarding of customer information provisions of the GLB Act are sufficient and already being complied with, why would those idiots in Congress have felt the need to address this area again in another Act?

I know that was a rhetorical question, and pardon my language, but, this Act just has me so frustrated.
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#276775 - 01/11/05 03:33 PM Re: Final Reg - Records Disposal
Anonymous
Unregistered

what is the amount of time required to maintain credit applications "on file" to be in compliance with ftc before records can be disposed of-it used to be 25 months. Is this still a requirement and has the time changed?

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#276776 - 01/11/05 03:43 PM Re: Final Reg - Records Disposal
Anonymous
Unregistered

any help out there to let me know when I can dispose of credit applications and still be in compliance... or direct me to a website that can give me the parameters?

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#276777 - 01/11/05 05:45 PM Re: Final Reg - Records Disposal
Bear Collector, CRCM Offline
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Bear Collector, CRCM
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Posts: 1,830
District of Columbia
Peridot,
I just reviewed our GLB confidentiality agreement with our vendors and I do not believe it meets the 216 requirements. The biggest issue is due to the fact that we defined customer information to mean information used for personal, family and household purposes. Section 216 takes this a bit further and includes individual information used for business purposes. Therfore, I am making changes to my confidentilaity agreement, which means a contract change to all the vendors we have confidentiality agreements with! Some of these vendor contracts may come up for renewal before July 2006, but for those that do not, we are going to have to send some kind of modification. Oh joy! I'm glad I have 19 months to get this done!
BC
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#276778 - 01/11/05 05:51 PM Re: Final Reg - Records Disposal
Bear Collector, CRCM Offline
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Bear Collector, CRCM
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Posts: 1,830
District of Columbia
Anoan,
I do not believe that the FCRA or the FACT Act changed the Reg B retention requirements. But, keep in mind that this section of the FACT Act applies to more than just your applications and AANs - it applies to any information derived from a credit report. Therefore, if it is your policy to retain the app and the AAN and purge the file of all extraneous notes and calculations regarding the loan, that documentation would be subject to the disposal requirements of FACTA. Also, any e-mail communications regarding the loan would be subject to the FACTA requirements.
BC
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#276779 - 01/11/05 09:06 PM Re: Final Reg - Records Disposal
Anonymous
Unregistered

What type of e mails? this is the first I have heard of this.

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#276780 - 01/11/05 10:06 PM Re: Final Reg - Records Disposal
Bear Collector, CRCM Offline
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Bear Collector, CRCM
Joined: Nov 2000
Posts: 1,830
District of Columbia
Information security applies to more than just your paper files - it applies to any information shared in any medium. E-mails containg confidential custpmer information should be encrypted if sent outside the bank. This isn't new with FACTA - this has been around since GLB. My concern is that our underwriting is centralized, so if the underwriter has questions or wants to communicate something about the loan application to the front-line person, the underwriter sends an email. the Email might say something like "Customers score is 540 so we can't make the loan." "Or please contact customer regaring derogatory from XYZ>". What worries me is what the front line person does with that email - do they store it on the computer (and how safe is it?) or print it out? If they print it, how do they dispose of it?
BC
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#276781 - 01/13/05 03:16 PM Re: Final Reg - Records Disposal
Anonymous
Unregistered

After reading the final rule of Section 216 (disposal of information), I believe the section of our information security program dealing of information disposal should be revised from "customer information" to "consumer information"?

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