A payday loan management company will be paying out over $100,000 in fines due to their improper disposal of consumer documents.
The Federal Trade Commission has strict guidelines to protect consumers. Financial institutions are required to protect personal information. Safeguards need to be set-up and privacy notices need to be delivered to consumers. Financial transactions deal with sensitive personal information. Many documents will contain loan applications which obtain a consumer's employment information addresses telephone numbers, social security numbers, bank account information and often times credit reports. Privacy practices would safeguard this information. Once a financial institution no longer needs the consumer's information it is supposed to be destroyed. When this is not the case and mismanagement of the disposal process happens, the Federal Trade Commission will clamp down on the company.
This latest ruling stemmed from the payday loan management company which left sensitive documents unsecured in dumpsters near actual brick and mortar payday loan companies. The Federal Trade Commission has clamped down on consumer safety. The Disposal Rule, which states that companies must dispose of credit reports and information may come from them in a safe and secure manner. A dumpster is a far cry from proper procedure.
One of the good things about online payday loans is that there is very little paperwork to worry about. Application forms are done online, bank statements can be sent through email or opt for no fax payday loans. It is still important that whatever paper work is printed that it is disposed of properly. There are services which do take care of this properly. These services take care of more than just financial company waste. If you have questions or concerns about how any type of financial service handles their document waste, it is definitely worth a phone call to find out. Most often, you will find disposal management services take care of sensitive documents. The Federal Trade Commission oversees that companies have privacy procedures in place and that each party concerned follows through using them. If and when you have any concerns about improper procedures, call the proper authorities.
Part of being a responsible lender, especially for direct payday loan online companies is to follow all the best practices in the book. Transactions are done over the phone and through electronic transfers. The only personal contact is if there are phone conversations. A great lender knows this and makes sure that these phone calls are done professionally and courteously. A consumer can do more to protect their personal information by seeking out responsible financial services before sending sensitive personal information of any kind.
There are many consumers who refuse to utilize online banking in any shape or form. Refusing to use direct deposit convenience or paying bills online. These people like the paper and being able to see and talk to a person or write out the check themselves. These paper trails need to be disposed of properly. If you are expecting any one way to be perfectly secure over another leaves too much room for human error. Sometimes these errors are pure mistake while others are due to carelessness or sheer defiance of rules. Consumers need to shop around for financial institutions which they can trust to uphold the standards from communication, money transactions of all kinds, to proper disposal of sensitive documents Errors are not only found pertaining to payday loan companies, but in every business or service where human error makes it possible.
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