Does your organization collect personal and private information from consumers? If you do, you’d better be handling that information properly. You need to be clear about who has access to this sensitive information. And equally important, you need to dispose of it properly. No one wants to risk their financial identity with an untrustworthy business. If the information is improperly handled, your reputation can suffer.
That’s where the “disposal rule” comes in.
What is the Disposal Rule?
The disposal rule is designed to reduce the risk of consumer fraud. Federal law requires any person who possesses information taken from consumer reports which is to be used for a business purpose to “properly dispose” of this information. If the information that was derived from these consumer reports is not disposed of properly, it could lead to things such as identity theft.
Who does the Disposal Rule Cover?
Any organization regulated by the FTC or the federal banking agencies (including the CFPB) must follow the disposal rule. This includes, for example, motor vehicle dealers, sales finance companies and lenders. Also, anyone who provides a service for hire to dispose of consumer information must follow the disposal rule, i.e., a third party disposal company.
Now that we know the “What” and the “Who,” the big question is “How?”
F&I Software & Services Designed for Dealerships
Vera F&I software and services are specifically designed for vehicle dealers including automotive, truck, RV, marine, and power sports. Our F&I compliance solutions will help you develop compliant sales processes, train sales and finance teams, safeguard consumer information, and maintain clean deal jackets—all to help you minimize risk and maximize profits.