What is FACTA?
FACTA (FACT ACT) is the Fair and Accurate Credit Transition Act, a new federal law designed to reduce the risk of consumer fraud and identity theft created by improper disposal of consumer information.
What You Should Know About the FACTA Disposal Rule:
According to the FTC's FACTA DISPOSAL Rule, "any person who maintains or otherwise possesses consumer information for a business purpose" must properly destroy discarded consumer information employing "reasonable measures."
Reasonable measure are defined in FACTA as "burning, pulverizing, or shredding of papers containing consumer information" or entering into " a contract with another party engaged in the business of records destruction to dispose of material, specifically intended as consumer information, in a manner consistent with this rule."
