How did the Fair and Accurate Credit Transactions Act (FACTA) amend the Fair Credit Reporting Act (FCRA)?

Question

Options

• AIt expanded the definition of "consumer reports" to include communications relating to employee
• BIt increased the obligation of organizations to dispose of consumer data in ways that prevent
• CIt stipulated the purpose of obtaining a consumer report can only be for a review of the
• DIt required employers to get an employee's consent in advance of requesting a consumer report

• A
  5% (2)
• B
  81% (30)
• C
  3% (1)
• D
  11% (4)

Explanation

FACTA added a new section to the FCRA that requires any person who maintains or otherwise possesses consumer information, or any compilation of consumer information, derived from consumer reports for a business purpose, to properly dispose of any such information or compilation. The purpose of this provision is to reduce the risk of identity theft and other consumer harm resulting from improper disposal of consumer information. The FTC and other federal agencies have issued rules implementing this provision, which specify the reasonable measures that covered entities must take to ensure secure disposal of consumer information, such as burning, pulverizing, shredding, erasing, or otherwise modifying the information to make it unreadable or indecipherable (16 CFR ?682.3).

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