WesTex Document, Inc.    

                  Our Business, Is Keeping Your Business - Your Business!

STOP THE ILLEGAL DUMPING OF RECORDS!

Risk Mitigation and Privacy Protection are vital elements to any company’s operating procedures today. In that regard the Fair and Accurate Credit Transactions Act of 2003 (FACTA) was signed into law by the President of the United States on December 4, 2003. In general, the Act amends the Fair Credit Reporting Act (FCRA) to enhance the accuracy of consumer reports and to allow customers to exercise greater control regarding the type and amount of marketing solicitations they receive. 

Most important in our minds, is the fact that FACTA contains a number of provisions intended to combat consumer fraud and related crimes, including identity theft, and to assist victims. 

Section 216 of the FACT Act requires “any person that maintains or otherwise possesses consumer information, or any compilation of consumer information, derived from consumer reports for a business purpose to properly dispose of any such information or compilation.” 

Section 682.1(b) (the Disposal Rule) defines “consumer information” as any record about an individual, whether in paper, electronic, or other form, that is a consumer report or is derived from a consumer report.  

Section 682.1(c) defines “disposing” or “disposal” to include the discarding or abandonment of consumer information, as well as the sale, donation, or transfer of any medium, including computer equipment, upon which consumer information is stored. 

Section 682.3 outlines the steps for proper disposal and requires any person to “take reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal.” It does not require “perfect” destruction, but rather “reasonable measures.” In determining what “reasonable methods are” the FTC rule requires the establishment of policy and procedures governing the disposal, as well as appropriate employee training.  In Section 682.3(b) (1) sites examples of proper disposal being burning, pulverizing, or shredding of papers containing consumer information so that the information cannot practicably be read or reconstructed. In Section 682.3(b)(3), it states “after due diligence, entering into and monitoring compliance with a written contract with another party engaged in the business of record destruction to dispose of consumer information in a manner consistent with the Rule.