OCC 2005-1
OCC Bulletin

Subject:      Proper Disposal of Consumer Information
Description:  Final Rule

Date:         January 12, 2005

To:  Chief Executive Officers of All National Banks, Federal
     Branches and Agencies, Service Providers, Software Vendors,
     Department and Division Heads, and All Examining Personnel

The attached final rule, issued jointly by the federal bank and
thrift regulatory agencies, was published in the Federal Register
on December 28, 2004 (69 FR 77610).  The rule requires financial
institutions to adopt measures for properly disposing of consumer
information derived from credit reports.

The final rule implements section 216 of the Fair and Accurate
Credit Transactions Act of 2003 (FACT Act) by amending the
Interagency Guidelines Establishing Standards for Safeguarding
Customer Information (retitled by this rulemaking as the
Interagency Guidelines Establishing Standards for Information
Security).  See, e.g., part 30, Appendix B (national banks).  The
final rule effectively requires a financial institution to
dispose of "consumer information" in a manner consistent with the
requirements in the guidelines that currently apply to the
disposal of "customer information."

Under the final rule, financial institutions must make
adjustments to their information security programs to properly
dispose of "consumer information" that is not already protected
as "customer information."  This would include information from
credit reports about a financial institution's employee or about
a consumer whose application for a product or service is denied.

 In addition, the final rule establishes a new part 41 to house
the OCC's Fair Credit Reporting Act regulations, including a
section requiring the proper disposal of consumer information
that cross-references the guidelines.

The final rule will take effect on July 1, 2005.

For questions concerning this final rule, contact Amy Friend,
assistant chief counsel at (202) 874-5200; Deborah Katz, senior
counsel, Legislative and Regulatory Activities Division at (202)
874-5090; or Aida Plaza Carter, director, Bank Information
Technology at (202) 874-4740.


____________________________________
Daniel P. Stipano
Acting Chief Counsel

Attachment - 69 FR 77610
          [http://www.occ.treas.gov/fr/fedregister/69fr77610.pdf]