And What Happens if Your Business is not Compliant?

The FACTA disposal rule was established in 2003 as an amendment to the Fair and Accurate Credit Transaction Reporting Act. It was created to protect consumers from ID theft by enacting rules on how their information can be shared and disposed of. If you’re running a business of any size, it is your responsibility to follow the FACTA disposal rule, and if you don’t, you’re not only not compliant, you are breaking the law.

What does the FACTA disposal rule say?

The FACTA disposal rule states that as a business, it is your responsibility to take reasonable measures to protect your customers confidential information against unauthorized access or use. If you do not have protocols in place for secure storage and destruction of your customer’s information—it is critical that you do so immediately. A breach at your company will not only put your customers at risk for ID theft, it will also put you at risk for legal and possible financial consequences. The FACTA disposal rule provides the following guidelines:

• Burning, pulverizing and shredding are considered reasonable measures according to the FTC
• Shredding is an ideal method to dispose of and permanently destroy sensitive documentation
• Companies can be fined even if there was no injury to your customer

What are the Penalties for Non-Compliance of the FACTA disposal Rule?

Failing to comply with the FACTA disposal rule is a critical mistake that can end up costing your company a lot of money in fines and damage your reputation. In many cases, even if the customer does not become a victim of ID theft, your business will be held accountable for the breach if you did not take reasonable measures to prevent it. These fines and penalties can quickly add up, take a look:

Civil liability: Companies can be made to pay statutory damages up to $1,000 per customer affected, in addition to actual damages

Class action lawsuit: Companies can be held responsible and fined millions depending on the scale of the violation, fees can also include punitive damages and attorney and court fees

Federal penalties: Your business can be fined up to $2,500 for every violation

State penalties: Up to $1,000 in fines can be assessed to businesses for every violation that affects state’s residents

Compliance to the FACTA disposal rule can be seamless and convenient by partnering with a mobile shredding provider that will ensure all documents are securely shredded and destroyed on a regular basis. Regular shredding is key to compliance because it eliminates the possibility that sensitive documents are at risk of being stolen or accidentally recycled.

All Points Mobile Shredding provides NAID AAA certified shredding and destruction to businesses across South Florida. We’re a family-owned and operated company in Stuart, Florida and have been the shredding partner of choice for businesses since 1994. Give us a call today or fill out this form to find out how we can serve you.