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In November 2004, a final rule within the Fair and Accurate Credit Transactions Act (FACTA) was issued that addresses the disposal of consumer information. Every company that operates in the United States is affected by this legislation.
What is FACTA?
FACTA is a federal law designed to minimize the risk of identity theft and consumer fraud by enforcing the proper destruction of consumer information. The Federal Trade Commission of the United States (FTC) developed the Disposal Rule in November 2004 to further implement the policies set forth in FACTA. The Disposal Rule applies to businesses that utilize consumer information; however, it affects every person and business in the United States.
The FACTA Disposal Rule, effective June 1, 2005, states that "any person who maintains or otherwise possesses consumer information for a business purpose" is required to dispose of discarded consumer information, whether in electronic or paper form. The Disposal Rule further clarifies the definition of compliance as "taking reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal." These "reasonable measures" include:
- Burning, pulverizing, or shredding of physical documents
- Erasure or destruction of all electronic media
- Entering into a contract with a third party engaged in the business of information destruction
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. Specifically, this applies to:
- Businesses that use consumer information in their everyday operations, such as banks, lenders, insurers, auto dealers, realtors, employers
- Service providers that store consumer reports and information, such as record management and information management companies
- Service providers that destroy information, such as shredders, recyclers, waste management or technology disposal companies
How can Polar Shredding help you comply?
Polar Shredding offers solutions that will help ensure your compliance with FACTA and other laws currently in place, including Gramm-Leach-Bliley, Sarbanes-Oxley, and HIPAA.
- Document and Material Destruction - Polar Shredding manages the disposal of all different types of media - not just paper. The FACTA Disposal Rule also covers consumer information that is stored on computers, hard-drives, CDs, and other media.
- Closed Loop Security - Polar Shredding provides secure locked bins to your business. These bins are picked up by our trained Security Service Representatives using our state of the art mobile shredding trucks. Your information is shredded right at your site, even while you watch through our truck mounted security cameras. Giving you peace of mind!
- Certificate of Destruction - Certificates of destruction are provided with every invoice. This gives you written confirmation that your documents have been securely destroyed in compliance with FACTA.
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