FACTA, Fair and Accurate Credit Transactions Act

As the digital age progresses and peoples’ information becomes increasingly stored electronically, Congress is continually implementing safeguards to protect against identity theft.  FACTA, the Fair and Accurate Credit Transactions Act, is a government mandated item of legislation to be practiced by businesses for the privacy of consumers.  At its core, FACTA is tailored to the financial sector of record keeping and sensitive documentation in the attempt to prevent monetary abuses and aid identity theft victims with a proactive approach.  The types of institutions that it covers include banks, lenders, landlords, and any business or singular entity that keeps consumer reports.

     One of the concerns that FACTA brings to light is the method of disposal for private information.  As outlandish as it may sound to hear that there are people that go through trash cans and dumpsters to steal the financial identity of individuals and businesses, it is even more surprising at how common this method of thievery is.  Businesses are encouraged to seek third party help, like a competent document management service with industrial sized shredding capabilities.  Such document management companies have proven themselves indispensable to the financial privacy and secure destruction of sensitive records that businesses inherit with every new customer. 

     Compliance with FACTA is not as simple as one may think.  There are pages of rules and regulations that are in place to protect a customer from privacy intrusions and the penalties are severe to any business or financial institution that allows such a transgression to occur.  To find out how well your business is prepared, take a moment and do a self-audit.  Walk around the office and take note of how organized it is, the items in the garbage, listen to employee interactions, inquire about the company’s means of disposal and look in your dumpsters if you have them.  These simple procedures should give you an idea of how compliant your business is with some of the basic FACTA measures.  Also, research records management companies with large shredding operations to see what they have to offer in terms of assistance or advice.