FACTA

The Fair and Accurate Credit Transaction Act
FACTA was enacted in 2003 and amended in June 2005. FACTA provides consumers, companies, consumer reporting agencies and regulators with new tools to expand consumer access to credit, create a more accurate consumer financial information and help fight identity theft.

Does FACTA Apply To You?
FACTA's Disposal Rule applies to any company or person that “maintains or otherwise possesses consumer information or any compilation of consumer information, derived from consumer reports for a business purpose.” It calls for the proper disposal of information in consumer reports and records to protect against “unauthorized access to or use of the information.” Among those who must comply with the Rule are:

  • 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
  • Entities that maintain information in consumer reports as part of their role as service providers to other organizations covered by the Rule.

What Is Proper Disposal
The Disposal Rule requires disposal practices that are reasonable and appropriate to prevent the unauthorized access to, or the use of, information in a consumer report.

  • Shred, burn, or pulverize papers so that the information cannot be read or reconstructed.
  • Destroy or erase electronic files or media so that the information cannot be read or reconstructed.

Does FACTA Have Teeth?
The Fair Credit Reporting Act (revised by FACTA) outlines penalties, including civil liabilities for noncompliance.

616. Civil liability for willful noncompliance – (a) In general. Any person who willfully fails to comply with any requirement imposed under this subchapter with respect to any consumer is liable to that consumer in an amount equal to the sum of (1) (A) any actual damages sustained by the consumer as a result of the failure or damages of not less than $100 and not more than $1,000; or (B) in the case of liability of a natural person for obtaining a consumer report under false pretenses or knowingly without a permissible purpose, actual damages sustained by the consumer as a result of the failure or $1,000, whichever is greater; (2) such amount of punitive damages as the court may allow; and (3) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney’s fees as determined by the court.

What To Do?
Secure and shred your confidential documents whether they're in print or electronic format.

To Become FACTA Compliant, Call Smarter Shredding at (844) 392-7473

FACTA Disposal Rule Goes into Effect June 1
http://www.ftc.gov/opa/2005/06/disposal.shtm

New Rules Tells How to Dispose of Consumer Report Information
http://business.ftc.gov/documents/alt152-disposing-consumer-report-information-new-rule-tells-how

The Fair and Accurate Credit Transaction Act of 2003
http://www.ftc.gov/os/statutes/fcrajump.shtm

NAID AAA Certified Smarter Shredding, Inc. is a BBB Accredited Shredding Service in Dallas, TX
Your organization must comply with laws and regulations, requiring that it protect certain information when it is discarded.

An increasing number of laws actually require organization to shred or face steep fines.
If you violate FACTA, there is NO limit on punitive damages allowed.
Why Shred? Protect Your Reputation Protect Yourself

State Laws

Texas Shred Law (HB 698)

Federal Laws

Check 21 EEA FACTA FERPA GLB HIPAA Identity Theft Penalty Enhancement Act SOX
CEO's #1 Fear? Severely Damaged Reputation from a Security Breach
Doing Nothing = Negligence. This opens the door to class action lawsuits and massive punitive damages.
It's The Law. You cannot throw away expired documents under Texas Shred Law and Federal Law. You will be publicly exposed and hit with massive audits and fines.