| FACTA
is the Fair and Accurate Credit Transaction Act.
It is a federal law designed to reduce the risk of consumer
fraud and identity theft created by improper disposal of consumer
information.
It applies to virtually every person and business
in the United States. It requires the destruction of all consumer
information before it is discarded. There are potentially
severe penalties await violators of the law. Although the
FTC (Federal Trade Commission) has issued their FACTA Disposal
rule and singled out Lenders, Insurers, Employers, Government
Agencies, Mortgage Brokers and Automobile Dealers,
in fact, the law applies to every individual and business
in the United States.
FACTA Disposal Rule further states that every
person and/or business “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”.
Reasonable measures are defined
in FACTA 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.”
Substantial civil liabilities and governmental
fines await those that are not compliant with the law.
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