FTC Disposal Rule and Scan123 FAQ’s -

What are the major things our dealership needs to do to be compliant with the FTC Disposal Rule?

--Currently, most dealers are filing credit applications, bureaus and other sensitive information by simply piling them in a box, then putting them out to long-term storage.  This is no longer an acceptable practice.  The Disposal rule now mandates every credit application, credit report and any other sensitive information taken by a dealer needs to:

1.)    Be stored securely, so that access is available only to authorized personnel, for a minimum of 25 months.

2.)    Be able to be retrieved and provided to any government law enforcement agency, investigating agency, or the consumer upon request.

If you’re like most dealerships, it’s virtually impossible to locate a credit application that was taken 5 months ago.  Scan123 provides a much-needed solution to turning what take hours now, into just minutes.  By scanning and storing these documents, they are safeguarded, as well as easily retrieved for viewing, printing, faxing, or emailing - within seconds.

Why was the FTC Disposal Rule created?

--This rule was created as a part of the FACT Act of 2003 to protect consumers and reduce the amount of identity theft cases that are resulting from improper disposal of consumer information.

What are the penalties if our dealership is found not in compliance?

--Failure to comply with the FTC Records Disposal Rule could result in Federal and State penalties up to (or in some cases exceeding) $10,000 per violation.  It is also possible for civil damages to be introduced.  In the case of a successful action to enforce civil liability, the plaintiff(s) could also be entitled to attorney's fees.

How does Scan123 help my dealership comply with the FTC Disposal Rule?

--Scan123 offers secure, highly encrypted storage for all sensitive documentation.  This is a major requirement of the rule.  Scan123 stores all information indefinitely, and more than covers the 25-month storage requirement.  It also brings up the documentation in seconds, to those authorized to view the information.

Can I use Scan123 for documents other than credit applications, or credit bureaus?

--Yes, Scan123 is perfect for service repair orders, sold deals, employee files, sublets, and parts orders.  Scan123 works for anything your dealership would like to store in an organized, easy to use and accessible system.

Click for FACTA and FTC Disposal Rule Details

Contact or Call Scan123 today for a free demo and ask to speak with our referrals.

Scan123 is your Dealership’s Secure Document Scanning and Storage Solution!