Disposal of consumer information is guided by interagency guidelines. Is this statement true or false?

• A. True
• B. False
• C. Only for large banks
• D. Only for government agencies

Answer: (A)

Disposal of consumer information is guided by interagency guidelines. Finanical institutions must protect customer information even when it is discarded, and regulators from multiple agencies issued interagency guidelines to set consistent standards for disposal. Under the Gramm-Leach-Bliley Act’s Safeguards Rule, the safeguards program must address how data is securely disposed of, which includes methods to render information unreadable or unrecoverable (like shredding or secure erasure). These guidelines come from several regulators—the Federal Reserve, FDIC, OCC, NCUA, and the FTC—so the requirements apply broadly to financial institutions under their oversight, not just to large banks or to government agencies.