FACTA: The Fair and Accurate Credit Transaction Act
The newest in a long list of federal privacy law became law 06/01/05. FACTA applies to virtually every person and business in America. Under potentially severe penalties it requires the destruction of all consumer information before it’s discarded for the protection of each individual.
The Federal Trade Commission (FTC) has issued their FACTA DISPOSAL RULE. This rule applies to every individual and business in their jurisdiction and particularly singles out: Lenders, Insurers, Employers, Landlords, Government Agencies, Mortgage Brokers, and Automobile Dealers.
Any person who maintains or otherwise possesses consumer information for a business purpose must properly destroy discarded consumer information. The Disposal Rule further states that “reasonable measures” must be taken to protect the unauthorized access or use of the information in connection with it’s disposal.
Reasonable measures are defined as “burning, pulverizing, or shredding of papers containing consumer information” or entering into “a contract with another party engaged in the business of record destruction to dispose of material specifically identified as consumer information, in a manner consistent with this rule.”
Severe penalties await violators: Civil liability, Class actions, Federal and State Enforcement. Bottom line….do the right thing for your employees, your customers, your corporate image, your trade information rights, and because it’s the law!