QuestionQ97

Federal Privacy Laws

In what way did the Fair and Accurate Credit Transactions Act (FACTA) amend the Fair Credit Reporting Act (FCRA)?

  • A It expanded the definition of “consumer reports” to include communications relating to employee investigations
  • B It increased the obligation of organizations to dispose of consumer data in ways that prevent unauthorized access
  • C It stipulated the purpose of obtaining a consumer report can only be for a review of the employee’s credit worthiness
  • D It required employers to get an employee’s consent in advance of requesting a consumer report for internal investigation purposes
Explanation

FACTA directed implementation of disposal requirements for consumer report information. Covered organizations must use reasonable and appropriate disposal practices to prevent unauthorized access to or use of that information.

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