Enacted in 2003, the Fair and Accurate Credit Transaction Act, or FACTA, is an amendment to the Fair Crediting Reporting Act. FACTA was added to protect consumers from identity theft by providing rules on how their information should be shared and destroyed.
One of the most important parts of FACTA is the disposal rule. This rule requires businesses and individuals to take appropriate measures to dispose of sensitive information about consumers. The FACTA disposal rule applies to everyone, regardless of business size, so it’s important to make sure you’re compliant with FACTA. If you aren’t, you are breaking the law.
What Is the FACTA Disposal Rule?
The FACTA disposal rule requires businesses to take “reasonable measures” to protect against unauthorized access to or use of consumers’ information. According to the FTC, burning, pulverizing, and shredding are all considered reasonable measures under the disposal rule.
The disposal rule is designed to be flexible, allowing anyone affected by the rule to choose which measures are “reasonable” based on the costs and benefits of different disposal methods. Additionally, if you can’t shred the consumer information yourself, the disposal rule also allows the use of document destruction contractors.
FACTA Noncompliance Penalties
There are severe legal penalties for failing to comply with the FACTA disposal rule. The statutory damages may even be assessed without any actual injury to the customer.
Depending on how many violations there are, the cost can quickly add up to hundreds of thousands or even millions of dollars.
| Type of Liability | FACTA Penalties |
|---|---|
| Civil Liability |
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| Class Action Lawsuit |
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| Federal Penalties |
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| State Penalties |
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How to Ensure FACTA Compliance
The best way to make sure you are complying with FACTA is to have your documents shredded. On the positive side, there are several options when it comes to choosing a secure shredding service.
Though the price varies between services, using a secure shredding service will cost much less than paying for violating the FACTA disposal rule.
1. Mobile Shredding
Mobile shredding is a convenient way to handle the destruction of your important documents. For reference, the national average is $130 – $175 for a project up to 10 boxes.
However, pricing does vary based on location, project size, and other factors. You can schedule a mobile shredding truck to come to your location and shred your materials on-site.
2. Off-Site Shredding
Off-site shredding is suitable for any sized project. Like with mobile shredding, an off-site shredding service can be scheduled to come to pick up your paper. From there, it will be taken to a secure shredding facility and destroyed. The cost of off-site shredding depends on your location and which provider you choose.
3. Drop-Off Shredding
If you don’t have as much to shred, or you don’t need to schedule a pickup or mobile shredding, drop-off shredding is a great option. For an average of $1 per pound, you can drop off your documents at a retail location, where they will be shredded.
4. Ship ‘N’ Shred
With Shred Nations, you can Ship ‘N’ Shred your boxes. It will cost about $30 for a 30-pound box of paper, or $45 for a 60-pound box. You can choose to have your boxes picked up and shipped or drop them off at a shipping location yourself.
5. Hard Drive Shredding
The FACTA disposal rule also applies to electronic information. If you have old hard drives or other data storage devices that contain consumer information that FACTA covers, it’s important to make sure to properly destroy them.
Just like with hard copies, shredding a hard drive is the best way to ensure that any sensitive information cannot be read or reconstructed. Many paper shredding services will handle hard drive shredding for between $7 and $20 per hard drive. But the more hard drives you have, the less it will cost per drive.
Whichever method you choose, make sure you ask about a certificate of destruction. These certificates detail the when and where of your document shredding. Moreover, it can serve as proof that you complied with FACTA and other laws.
Need FACTA-Compliant Shredding?
Shred Nations partners with secure shredding services across the United States. To find the right provider, fill out the form, give us a call at (800) 747-3365, or contact us directly using our live chat for a free, no-obligation quote from shredding services in your area.
