 Are you in compliance?
FACTA
The Fair and Accurate Credit Transactions Act (FACTA) is a broad-sweeping consumer rights bill providing for:
- Notice of consumer rights
- Credit score explanations
- Methods for disputing inaccurate credit reports
- Notice of negative credit reports
- Medical information and consumer reports
- Nationwide specialty consumer reporting agencies
- Workplace investigations
- Information sharing among affiliates
- Opt-out for risk-based pricing
- Disposal of consumer information
- Penalties of FACTA violations
- Disposal of consumer information
A final ruling (issued in November 2004) from FACTA addresses the disposal of consumer information — name, address, SSN, credit information and data compiled from this information.
Any person who maintains or otherwise possesses consumer information for a business purpose — in electronic or paper must "take reasonable measures to protect against unauthorized access or use of the information in connection with its disposal." FACTA requires disposal to be done properly — burning, pulverizing or shredding.
Violations of FACTA
If you are found noncompliant, you could be vulnerable to severe fines and even subject to class-action lawsuits, including:
- Civil Liability — Actual damages sustained if identity is stolen as a result of corporate inaction, or statutory damages up to $1,000 per employee.
- Class-Action Lawsuits — If large numbers of employees are affected, they may be able to bring class-action suits and get punitive damages from employers.
- Federal Fines — Up to $2,500 for each violation.
- State Fines — Up to $1,000 for each violation.
Serving over 700,000 businesses and growing.
|