Which of the following describes FACTA's disposal safeguards?

• A. Requires safeguards against theft in disposal of consumer reports.
• B. Permits disposal of reports in plain sight
• C. Requires all data to be destroyed within 24 hours
• D. Allows indefinite retention of consumer reports

Answer: (A)

Disposal safeguards under FACTA are about protecting consumer information when it is discarded. The rule requires reasonable measures to prevent access to this information after it’s no longer needed, such as shredding physical documents or securely erasing electronic data so it cannot be read or retrieved. That’s why the best choice emphasizes safeguards against theft in disposal — it directly reflects the duty to protect information at the point of disposal.

The other ideas don’t fit because leaving reports in plain sight would expose information to theft, a 24-hour destruction deadline isn’t mandated by FACTA, and indefinite retention keeps unnecessary risk exposure intact.