Fair and Accurate Credit Transaction Act (FACTA)
CUTTING EDGE DOCUMENT DESTRUCTION IS A MEMBER OF NAID. CONTACT US TO HELP YOUR BUSINESS COMPLY WITH FACTA REGULATIONS.
What is FACTA?
FACTA (or FACT act) is the Fair and Accurate Credit Transaction Act. This federal law is designed to reduce the risk of consumer fraud created by the improper disposal of consumer information.
- The FACTA Disposal Rule applies to every business and every person in the United States.
- It requires the destruction of all consumer information.
- Severe Penalties Await Violators.
Specifics in regard to the FACTA disposal rule state that,
“…any person who maintains or otherwise possesses consumer information for a business purpose…must properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information in connections with its disposal.”
FACTA defines reasonable measures 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.”
Severe Penalties Await Violators of FACTA
Consumers may be entitled to recover their actual damages sustained as a result of the violation of FACTA. If the violation were to lead to identity theft, the damages could be very large.
Statutory damages up to $1,000 may also be ordered for each consumer affected by a violation of this rule.
If large numbers of consumers are affected, a class action law suit may be brought forth to seek damages. For instance, if 1,000 consumers were affected, a class action lawsuit of $1,000,000 could be entered against the violating person or business. Punitive damages can also be awarded by courts in a class action or individual suit. Any successful plaintiff, or class of plaintiffs, is eligible to recover attorney’s fees.
Penalties up to $2,500 for each independent violation may be brought forth by the government as an enforcement action against violations to FACTA.
States are authorized to recover up $1,000 for each negligent or willful violation of FACTA that affects its residents, as well as any attorney’s fees or any other court fees.
Complying with FACTA
NAID (National Association for Information Destruction) is a non-profit trade group of document destruction firms. By choosing a NAID member, you are choosing a company bound by high ethical standards and a commitment to FACTA.
NAID members are guaranteed to:
- Provide convenient security collection containers.
- Can destroy staples, clips, CDs, or any other information device.
- Destroy information fast.
- Free up employee’s time so they can do their real work.
- Provide cost effective solutions, no matter the size of the office or business.
How It Works:
- The NAID member of your choice will provide you with security containers for collecting data.
- The NAID member will collect your confidential material for destruction at your convenience.
- Documents regarding the destruction of the materials and to establish your compliance with the FACTA privacy requirements will be provided to your business.
FACTA APPLIES TO EVERY PERSON OR BUSINESS IN THE UNITED STATES.