What practice supports privacy and data security in collections?

• A. Use access controls, encryption, secure storage, staff training, and compliance with GLBA and privacy laws
• B. Share debtor information with third parties without authorization
• C. Rely on unsecured, paper-based storage only
• D. Ignore staff training on data privacy

Answer: (A)

Protecting privacy and data security in collections relies on layered safeguards that control who can access information, protect data in storage and transit, and ensure staff understand their responsibilities. Using access controls ensures only authorized staff see debtor data. Encryption protects data whether it's stored or being transmitted, so even if data is intercepted or stolen, it can’t be read. Secure storage—whether digital with secure servers and backups or physical with locked files—reduces the risk of theft or loss. Staff training reinforces how to handle sensitive information, recognize phishing, and follow procedures. Compliance with GLBA and privacy laws ensures the program meets legal standards and provides customers with rights and safeguards.

Why the other ideas don’t fit: sharing debtor information with third parties without authorization breaches privacy protections and laws. Relying on unsecured, paper-based storage is highly vulnerable to theft or loss. Ignoring staff training removes a critical defense layer and increases the risk of human error.

Together, this approach gives a comprehensive protection for privacy and data security in collections by combining technical controls, responsible practices, and legal compliance.