Is Your Loan Company PIPEDA Compliant?

Quickcheck Canada
July 29, 2016

PIPEDA is an action that was last amended on June 23, 2015, and has helped to provide increased data security for lending companies. The acronym PIPEDA stands for Personal Information Protection and Electronic Documents Act, and it imposes several things upon payday loan business' owners and management teams.

In accordance with this act, lending companies must keep any personal information they have on a client available to them at all times. The client should be able to see any type of information a company has about them so they can also challenge its accuracy if they need to. Also, if the lending company has the intention of using a client's information for anything other than what they originally agreed upon, then they need to obtain consent from the client a second time.

The Purpose of PIPEDA

This act was put into place to keep the information of clients and companies more secure at all times. With cyber security becoming even more of a threat than ever, it's more important to ensure that client information is kept safe. In the past, cyber criminals have gained access to a lending company's sensitive financial and client information to obtain all they need to know about a person for criminal activities. The information in a payday loan business's database is more than enough to create fake identities. However, PIPEDA ensures a borrower that the lender is not the one using their information fraudulently.

Ensuring Your Company is Compliant

Payday loan business owners and management teams that want to be sure their clients' information is kept safe at all times need to think about buying payday loan software. There are companies that offer payday lending softwares which can automatically log an employee out of the business portal once they are finished using it. Remaining logged into the system is one of the easiest ways a cybercriminal is able to gain access to sensitive information. Also, the best payday lender software will have even more security by offering tiered access levels for managers and business owners. For example, a regular employee of the lending business will only have access to a limited amount of information, but the owner of the company will be able to see everything with their credentials. A smart business owner will take advantage of this software so they never have to worry about paying fines for not being in compliance with PIPEDA guidelines.

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