Posted by BarbaraL_CA on 9/27/06 1:08am
Msg #148705

FTC Standards for Safeguarding Customer Information

I found this interesting and thought I'd share it...note the information re independent contractors!

From the FTC Standards for Safeguarding Customer Information: Final Rule, dated 5/23/02.

“…comments sought minor clarifications of the definition of service provider….whether subservicers, employees and independent contractors of service providers are required to maintain separate safeguards. First, although outsourcing often involves functions that may be performed inhouse, the Commission sees no reason to exclude from the Rule Service providers that are specifically authorized to perform services that a financial institution cannot perform itself. Thus, such entities are covered to the extent that they meet the definition. Second, the focus of the Rule’s service provider provisions is clearly on the original service provider—the entity that provides services ‘‘directly to a financial institution’’— and not on subservicers or employees or independent contractors of these service providers. Although the original service provider should address the practices of these individuals and entities in its own security plan, the Rule does not specifically require these individual entities to maintain their own safeguards.”

If you wish to look at the entire document, it can be found at http://www.ftc.gov/os/2002/05/67fr36585.pdf

The excerpt above is found on page 6.

Reply by Charles_Ca on 9/27/06 1:24am
Msg #148707

Under that definition Barbara, do you see the Notary as

a subservice provider and the SS as the service provider? I think that there are some points that need to be addressed and I believe that the California (and some other states) notary is compliant, the weak link to my way of thinking is the Signing Service because they frequently handle the information but seem to take little responsibility for anything and have no certification, no consumer protections, no E&O, no bond, and their personnel are not trained as far as I've been able to see. Notaries fulfill all of the requirements, I think its time to regulate the SS! What do you think?

Reply by BarbaraL_CA on 9/27/06 1:31am
Msg #148708

Oh Charles! You pulled my trigger...

First and foremost I see the notary as an independent contractor, I would not say we are a subservice provider. But you pulled my trigger when you started talking about SSs and their handling information with little responsibility with no certification, E&O, etc! Now, mind you, there are few SS's that are responsible, do train their employees, do carry E&O...some SS's are actually owned by notaries. To answer your question about regulating SS's.. I agree! There should be standards.

Reply by John_NorCal on 9/27/06 10:43am
Msg #148786

Agree! Regulate the signing services...

as you've stated, notaries are the ones who have to meet state specific standards such as background checks. Whereas signing services hang out a shingle and make phone calls, so many of us have seen signing services where the person calling us knows nothing at all about notary procedures. I champion the thought, regulate the signing services!

Reply by Poppy on 9/27/06 10:06am
Msg #148773

Thank you, for the link Barbara! I venture to say that

professional NSA's already run their business as if they are covered under the safeguarding rule and already have a solid plan to safeguard the sensitive information that they are entrusted with. (a plan that they continually update as needed)

Perhaps all of this hoopla will force the not so professional in it for the quick $50, I don't care it's not my problem I don't get paid enough NSA's to shape up or ship out.

We'll have to see how it all plays out...

Thanks again for the info... It is interesting... "smiles" poppy