To Ftc Disposal Rule Of Consumer Credit Reports By Simplescreening.com "tenant Screening & Employmen

To protect against unauthorized access or use of consumer credit reports

, a federal rule, the Federal Trade Commission Disposal Rule, effective June 1, 2005, requires businesses to take appropriate measures in the disposal of consumer credit reports and background checks or the information derived from consumer reports used for tenant screening and employment screening (for our customers of landlords and employers).

Proper disposal of sensitive information is necessary to protect the privacy of consumer personal and financial information and help reduce risks of fraud and identity theft.

Any one who uses a consumer credit report and background for a business purpose is subject to the requirements of the Disposal Rule.

Under the Fair Credit Reporting Act, a consumer report is a report that includes information from a consumer reporting agency (CRA) that is used or expected to be used to establish a consumers eligibility for credit, employment, or insurance, among other purposes. The Disposal Rule applies to consumer credit reports and to information derived from consumer reports. For example, credit reports, credit scores, and informational reports on an applicants employment and rental housing history are consumer reports and come under the disposal rule.

Accordingly, landlords and employers must comply with the Rule. Reasonable measures for proper disposal of consumer credit reports should be based on the sensitivity of the information, the applicable costs and benefits of different types of disposal methods, and changing technology.

Disposal practices that are reasonable and appropriate to prevent unauthorized access or use of sensitive information might include:

>> Destroying or erasing electronic files in such a manner that the consumer information cannot be read or be reconstructed

>> Shredding, burning, or otherwise destroying paper documents in such a manner that the consumer information cannot be read or reconstructed

>> Hiring a certified contractor specialized in document destruction after performing due diligence of the companys operations and security policies

As a final note, any document containing a consumers sensitive information should be similarly safeguarded.

by: Maurice Smith

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