Agencies Propose Rules on Disposal
of Consumer Information
The federal bank and thrift regulatory agencies today invited public
comment on an interagency proposal to require financial institutions
to adopt measures for properly disposing of consumer information
derived from credit reports.
Current law requires financial institutions to protect customer
information by implementing information security programs. The proposed rules would
require institutions to make adjustments to their information
security programs to properly dispose of the types of consumer
information that are not already protected. This would include
information from credit reports about a financial institution’s
employee or about an individual whose application for a product or
service is denied.
The agencies’ proposal implements section 216 of the Fair and
Accurate Credit Transactions Act of 2003 (FACT Act). While not imposing
significant additional burden, the proposed rules would make
amendments to include this new statutory requirement in the Interagency Guidelines
Establishing Standards for Safeguarding Customer Information,
which were adopted in 2001.
The agencies' proposed rules add a new definition of
"consumer information" and a provision to require financial
institutions to implement appropriate measures to properly dispose
of consumer information.
The proposal would take effect three months after a final rule is
adopted.
Comments on the proposed guidance are requested within 45 days of
its publication in the Federal Register, which is expected
shortly. The Federal
Register notice is attached.
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Attachment
Media
Contacts:
Federal
Reserve
Susan Stawick
(202) 452-2955 FDIC
David Barr
(202) 898-6993 OCC
Dean DeBuck
(202) 874-5770 OTS
Erin Hickman
(202) 906-6677
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