FACTA: Fair and Accurate Credit Transactions Act.

FACTA: Fair and Accurate Credit Transactions Act.

The Federal trade commission has initiated a bill that requires businesses to properly dispose of industry sensitive consumer data. The rules cover just about any sort of record about any individual whether in paper form, electronic media or other form that is a consumer report.

The FACTA disposal rules apply to almost every business and private employer in the United States.

The act mandates that any company possessing this type of information to take “reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal”.

One of the best ways to comply with this requirement is to contract a third party to properly dispose of consumer information and provide a “Certificate of Destruction”.

A good solution may be to hire a mobile shedding service. However, it should be noted that a “Certificate Of Destruction” does not necessarily absolve a company of its obligation to keep information confidential.

Who is affected by FACTA?

Virtually every company operating in the United States is required, as of June 2005, to securely destroy all documents and material that contain sensitive consumer information.

This applies specifically to:

Storage service providers that keep consumer reports and information, such as record management and information management companies

Shredding and destruction service providers such as shredders, recyclers, waste management or technology disposal companies

Businesses that use consumer information as part of their daily operations including banks, lenders, insurers, auto dealers, realtors, employers, and marketers.

http://www.ftc.gov/opa/2004/06/factaidt.htm