Document disposal rule effective June 1

The Federal Trade Commission finalized a rule under FACTA that governs the disposal of records that contain consumer information. The Fair and Accurate Credit Transaction Act of 2003 (FACTA) was adopted to ensure that all citizens are treated fairly when they apply for credit. The proposed Disposal Rule was issued in April 2004 and enforcement will begin this June 1. The purpose of the Disposal Rule is to reduce the risk of consumer fraud created by improper disposal of any record that is, or is derived from, a consumer report. To further this objective, the Rule requires that any person who possesses or maintains covered consumer information take reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal.

Violation claims can be brought within two years from discovery of the violation or five years from the actual violation. Civil Penalty can be up to $2,500 per violation. In addition, fines can be levied by federal or state agencies. These violations can irreparably damage a company’s reputation.

Bonsall Photo and Postal Center has signed on with Iron Mountain, Inc. as an authorized agent for the Certified Destruction of Documents. Call (760) 941-9221 for fees and procedures.