{"id":1566,"date":"2016-07-25T09:00:04","date_gmt":"2016-07-25T13:00:04","guid":{"rendered":"https:\/\/www.autoraptor.com\/?p=1566"},"modified":"2024-10-14T11:37:02","modified_gmt":"2024-10-14T15:37:02","slug":"disposal-rule-facta-summary-auto-dealers","status":"publish","type":"post","link":"https:\/\/www.autoraptor.com\/blog\/disposal-rule-facta-summary-auto-dealers\/","title":{"rendered":"The Disposal Rule: A FACTA Summary for Auto Dealers"},"content":{"rendered":"

\"00-The<\/h2>\n

This FACTA summary of the Disposal Rule will ensure your dealership is compliant and your customers\u2019 identities are protected.\"01-The<\/h2>\n

After spending a great deal of time with a prospect, it\u2019s finally time: she\u2019s decided she wants to buy the Jeep Liberty on your lot \u2014 and you\u2019re the salesperson who is going to make it happen for her.<\/p>\n

You\u2019re thrilled; you worked hard for this sale, and you want to check out her credit report and get the financing on track ASAP. You run the report, print it out, take a look, and everything on it seems to be a green light. In a rush to close the deal, you leave the report on your desk. Eventually, you completely forget it\u2019s there, and it gets lost among the files, piles, and clutter.<\/p>\n

If this is a common everyday occurrence for you or other members of your team, you may be violating the Disposal Rule, which is part of the Fair and Accurate Credit Transactions Act of 2003 (FACTA)<\/a>. Getting on board with the Disposal Rule is a huge part of auto dealership compliance<\/a>, so if you\u2019re not sure what your obligations are, keep reading for a FACTA summary of the Disposal Rule.<\/p>\n

FACTA: Summary of the Disposal Rule<\/h3>\n

If you\u2019re familiar with the federal Fair Credit Reporting Act (FRCA), FACTA added sections to that. The point of FACTA is mostly to protect your customers from identity theft<\/a> \u2014 not something to take lightly, as every two seconds<\/a>, an American has his or her identity stolen.<\/p>\n

The Disposal Rule was added to FACTA in 2005, and it requires auto dealers \u2014 along with other businesses and individuals \u2014 to take appropriate measures to dispose of sensitive information derived from consumer reports. The proper disposal of sensitive, personal information is a critical step in preventing unauthorized access, misuse, or theft.\"02-The<\/p>\n

The good news? The Federal Trade Commission (FTC) is flexible as to how and when information is disposed of. They expect dealerships to figure out what type of measures are reasonable for them based on how sensitive the information is, the costs and benefits of various disposal methods, and any changes in technology.<\/p>\n

Your FACTA summary of proper disposal methods<\/h3>\n

Regardless of how you choose to dispose of your customers\u2019 private information, make a plan and stick to it so there is consistency across your dealership. Methods of disposal recommended by the FTC<\/a> include:<\/p>\n