815.476.6616

Why Shred?

FACTA Puts Document Destruction Requirements in Black and White

What is FACTA?

FACTA (or FACT Act) is the Fair and Accurate Credit Transaction Act, a brand 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:

  • It Applies to Virtually Every Person and Business in the United States
  • It Requires the Destruction of all Consumer Information before it is Discarded

Potentially Severe Penalties Await Violators

The Federal Trade Commission (FTC) has issued their FACTA DISPOSAL RULE. And, while the FTC has singled out …

  • Lenders
  • Insurers
  • Employers
  • Landlords
  • Government Agencies
  • Mortgage Brokers
  • Automobile Dealers

… the FACTA DISPOSAL RULE, in fact, applies to every individual and business subject to their jurisdiction, which includes virtually every person and business in the United States.

FACTA Requires the Destruction of Consumer Information before it is Discarded.

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.

The FTC’s FACTA DISPOSAL RULE further states that every person and/or business, “must properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal.”

Reasonable measures 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 record destruction to dispose of material, specifically identified as consumer information, in a manner consistent with this rule.” Potentially Severe Penalties Await Violators

Civil Liability:

FACTA provides for substantial civil liability. In some cases, consumers may be entitled to recover their actual damages sustained as a result of a violation of the rule which, in the case of identity theft, could be very large. In other cases, consumers may be able to recover statutory damages of up to $1,000 for each consumer affected by a violation of the rule.

Why Shred X?

As part of the only organization dedicated to increasing the security and ethics of the information destruction industry, Shred X is bound to a strict code of conduct. As industry professionals, they take their business and your trust seriously enough to promote Shred X’s efforts to improve the industry. Shred X holds themselves to a Higher Standard.

Why Not Just Recycle It?

While Shred X recycles everything they can after they destroy it, recycling alone does not establish the necessary requirements of information destruction, such as:

  • how it was destroyed
  • where it was destroyed
  • who destroyed it
  • when it was destroyed
  • legal chain of custody
  • fiduciary obligations

Legal & Regulatory Violations caused by NOT Destroying Info before Discarding

Why Shred X?

Why Use An Information Destruction Contractor?

  • Employees are more productive when focused on their core responsibilities
  • Safety – even small machines could cause injury if they grab clothing or accessories
  • Reduced capital and employment expenditures
  • Employees are most likely to realize the value of discarded company info
  • Company info such as payroll, legal employment issues and correspondence should not be exposed to most employees
  • In-house shredding will not handle large volumes and may prompt employees to circumvent the destruction process