A payday loan
management company will be paying out over $100,000 in fines due to their
improper disposal of consumer documents.
The Federal Trade
Commission has strict guidelines to protect consumers. Financial institutions
are required to protect personal information. Safeguards need to be set-up and
privacy notices need to be delivered to consumers. Financial transactions deal
with sensitive personal information. Many documents will contain loan
applications which obtain a consumer's employment information addresses
telephone numbers, social security numbers, bank account information and often
times credit reports. Privacy practices would safeguard this information. Once
a financial institution no longer needs the consumer's information it is
supposed to be destroyed. When this is not the case and mismanagement of the
disposal process happens, the Federal Trade Commission will clamp down on the
company.
This latest
ruling stemmed from the payday loan management company which left sensitive
documents unsecured in dumpsters near actual brick and mortar payday loan
companies. The Federal Trade Commission has clamped down on consumer safety.
The Disposal Rule, which states that companies must dispose of credit reports
and information may come from them in a safe and secure manner. A dumpster is a
far cry from proper procedure.
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