What is FACTA?
The Fair and Accurate Credit Transactions Act (FACTA) is federal legislation aimed at the prevention and penalization of consumer fraud and identity theft. Administered by the Federal Trade Commission (FTC), the FACTA Disposal Rule has been in effect since June 1, 2005. The Disposal Rule puts in place requirements for proper document disposal and destruction, and recognizes the problems that can and do arise when private information is disposed of in an irresponsible manner.
Who is affected by FACTA?
FACTA applies to virtually all persons and businesses in the United States, mandating that “any person who maintains or otherwise possesses consumer information, or any compilation of consumer information, for a business purpose must properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal.”
Under FACTA, consumer information is defined as personal identifying materials which extend beyond just a person’s name, including: a social security number, a driver’s license number, a phone number or e-mail address or a physical address.
To comply with the FACTA Disposal Rule, businesses and individuals must take “reasonable measures” to ensure such information does not fall into the wrong hands. Reasonable measures include the “burning, pulverizing, or shredding” of paper documents, such as the contracting of a third-party engaged in the document destruction business to dispose of confidential information in a manner consistent with the Act.
Failure to abide by FACTA may result in stiff penalties. Victims are entitled to actual damages sustained due to incompliance; they may also seek statutory damages, and, in some cases, file class-action suits. Federal and state authorities are also empowered to bring legal enforcement actions against businesses that violate the Act.
By purging outdated material and storing your active and/or inactive files with NORTHEAST RECORD RETENTION, we will assist your company in maintaining a document shredding program and/or records management program that meets or exceeds FACTA regulations.
NORTHEAST RECORD RETENTION uses state-of-the-art technology and highly trained and certified security professionals. We efficiently shred all documents either on your premises or at our state-of-the-art records center. We give you the option to watch the shredding process, and also provide you with a Certificate of Destruction that records each shred. With our document management and records storage program, you will quickly and accurately gain access to your documents. We use the O’Neil Software Inventory system with barcodes that will track all activity, help determine which files to maintain, how long to do so, and how to legally dispose of them when the records are no longer needed.
Trust NORTHEAST RECORD RETENTION as your partner in FACTA compliance for maintaining your document security program.
For more information on the Fair and Accurate Credit Transactions Act (FACTA), visit:
https://www.privacyrights.org/fs/fs6a-facta.htm
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DISCLAIMER: This is only a brief summary of the law. Please consult a legal professional for more information on how the specifics of this law may apply to your business.
