|Disposal of Consumer Report Information and Records, Final Rule|
|CITATION||16 CFR Part 682, FTC Final Rule|
|ENACTED||Effective date June 1, 2005|
Any business or individual who uses a consumer report for a business purpose must properly dispose of the information in the consumer reports and records to protect against “unauthorized access to or use of the information.”
The Federal Trade Commission also worked with the federal banking agencies, the National Credit Union Administration (NCUA) and the Securities and Exchange Commission (SEC) to ensure that the rules prescribed by each agency are consistent and comparable. The other federal banking agencies are: the Federal Reserve Board of Governors, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and Office of Thrift Supervision.
|DATA COVERED||Consumer reports or information derived from a consumer report.|
|INDUSTRY||Any business or individual who uses a consumer report for a business purpose, including lenders, insurers, employers, landlords, government agencies, mortgage brokers, car dealers, attorneys, private investigators, debt collectors, and individuals who pull consumer reports on prospective home employees.|
The Disposal Rule, as part of the Fair and Accurate Credit Transactions Act amendment to the Fair Credit Reporting Act (FCRA), imposes penalties for non-compliance with the disposal provisions, as with violations of any other FCRA provisions. If the business’ disposal practices are not compliant with the Rule and results in the theft of someone’s identity, that business can face:
Actions for claims of violations can be brought within two years from the date of discovery of the violation, or five years from the actual violation.
In determining damages and liability, the courts are permitted to take into account the business’ degree of guilt and their history of prior similar conduct.