Spring 2005-02 Financial institutions must adopt consumer information disposal policies

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Number 59
Spring 2005

Financial institutions must adopt consumer information disposal policies

July 1, 2005, is the deadline set by the Federal Deposit Insurance Corporation and the other federal financial institutions regulatory agencies (including the National Credit Union Administration) for financial institutions to adopt consumer information disposal policies.

The dateline was fixed pursuant to the requirements of the Fair and Accurate Credit Transactions Act of 2003, and applies to the destruction of "consumer information."

"Consumer information"

"Consumer information" is any credit report about an individual, as well as any record that contains information derived from a credit report. Information may take any form: paper files, electronic data, or any other.

The term "consumer information" does not extend to aggregate information derived from a group of credit reports (such as a mean credit score), nor to blind data (like the payment history on accounts that are not personally identifiable).

By July 1 each financial institution must "develop, implement, and maintain, as part of its information security program, appropriate measures to properly dispose of customer information and consumer information."

© 2005 Goldman Antonetti