In California most businesses are subject to federal or state legislation which forces specific day-to-day operations to occur. There are so many bills that can affect business operations that it can be hard to keep on top of them all. Your business should however, know the basics of one specific piece of legislation known as FACTA.
FACTA stands for the Fact and Accurate Transactions Act. The law was created and implemented with the goal of preventing and punishing consumer fraud and identity theft practices. The act consists of seven major titles:
- Identity Theft Prevention and Credit History Restoration
- Improvements in Use of and Consumer Access to Credit Information
- Enhancing the Accuracy of Consumer Report Information
- Limiting the Use and Sharing of Medical Information in the Financial System
- Financial Literacy and Education Improvement
- Protecting Employee Misconduct Investigations
- Relation to State Laws.
On June 1, 2005, the FTC (Federal Trade Commission) put into effect a new part of FACTA known as the “Disposal Rule”, which was composed to encourage businesses and individuals (including those in the Los Angeles area) to take appropriate measures to dispose of sensitive information derived from consumer reports in order to prevent identity theft and consumer fraud In summary; it requires businesses and individuals using consumer reports, to destroy them after an appropriate time period has been reached.
The FTC outlines what it classifies as proper document disposal methods. These methods include burning, pulverizing or shredding papers containing consumer report information. Electronic files must be destroyed or erased either through digital or physical destruction of the media devices, used to store the information (ex. Hard drives, USB flash drives etc.).
The Disposal Rule applies to many businesses covering many different professional areas. These include:
- Consumer reporting companies
- Lenders
- Insurers
- Employers
- Landlords
- Government agencies
- Mortgage brokers
- Automobile dealers
- Attorneys or private investigators
- Debt collectors
- Individuals who obtain a credit report on prospective nannies, contractors, or tenants
Click here to learn more about FACTA.
Click here to learn more about the Disposal Rule.
SAFESHRED is proud to offer services that are compliant with guidelines set out in many federal and state-level legislations including FACTA. Our NAID membership ensures, among other things, that our operations are in spec with the most rigorous service standards and legal compliances. Your Los Angeles area business can rest assured with SAFESHRED. To learn more, contact us today at 1-800-987-4722.
