ARLINGTON, Va.-NAFCU recommended a few alterations to NCUA's proposed rule regarding the disposal of consumer information. In its request for comment, NCUA asked whether the agency should clarify the phrase "derived from consumer reports" found in the Fair and Accurate Credit Transactions Act as part of its final rule. In the preamble of the proposal, NCUA explains that information taken from consumer reports that does not identify a consumer would not be covered. NAFCU's comment letter supported this interpretation but said it should be included within the text of the final rule. NAFCU suggested specific language: "Consumer information means any record about an individual, whether in paper, electronic, or other form, that is a consumer report or is derived from a consumer report and that is maintained or otherwise possessed by or on behalf of the credit union for a business purpose. Consumer information also means a compilation of such records. Consumer information does not include a record about an individual that does not identify the individual." NCUA also stated that it expects federal credit unions to have appropriate disposal procedures for paper and electronic records and that paper documents should be rendered unreadable. NAFCU stated the term "proper disposal" in the rule needs no further clarification. NAFCU also said federal credit unions may require a two-year period to ensure their vendors are in compliance, as opposed to the proposed one-year schedule. "NAFCU believes that some credit unions, especially larger credit unions, may have many service provider contracts to review and update and/or contracts which exceed one year; therefore, NAFCU recommends that NCUA implement a two-year time period to allow credit unions to modify service provider agreements," the letter signed by NAFCU President and CEO Fred Becker read. NCUA is coordinating and consulting with the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of Thrift Supervision, Federal Trade Commission, and Security and Exchange Commission on its FACT Act regulatory efforts for consistency and comparability.