The Federal Deposit Insurance Corporation (FDIC), in conjunction with the other federal bank and thrift regulators, is proposing to amend its customer information security guidelines to require financial institutions to properly dispose of consumer information. Comments on the proposal are due by July 23, 2004.

Current law requires financial institutions to protect customer information by implementing information security programs. The attached proposed rule would require institutions to amend their information security programs to address the proper disposal of consumer information. This would include information from credit reports about a financial institution's employee or any individuals whose application for a product or service is denied.

This proposal would implement section 216 of the Fair and Accurate Credit Transactions Act of 2003 by amending 12 CFR 364, Appendix B.

For more information, please contact Jeffrey M. Kopchik, Senior Policy Analyst, at (202) 898-3872, or Robert Patrick, Counsel, at (202) 898-3757.

For your reference, FDIC Financial Institution Letters may be accessed from the FDIC's Web site at http://www.fdic.gov/news/news/financial/2004/index.html.

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Attachment:

Distribution: FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC’s Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).