Federal Laws:
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. - 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 Penalites Await Violators
- FACTA went into effect June 1, 2005.
GLB, the Gramm-Leach-Bliley Act, requires companies engaged in financial activities to provide secure handling of client records and information-especially banks, mortgage and finance companies, brokers and underwriters, securities and investment firms and non-bank financial service firms. HIPAA, the Health Insurance Portability & Accountability Act, is a Federal law to prevent abuses of personal health information (PHI), including unauthorized access. It is administered by the U.S. Department of Health and Human Services (HHS) and it is enforced by the U.S. Office of Civil Rights. It also addresses the security and privacy of Patient Health Information (PHI). Specifically, it requires healthcare providers to destroy PHI before throwing it away. California Laws:
Bill 2246 went into effect in January of 2001 with the following mandate: " 1798.81. A business shall take all reasonable steps to destroy, or arrange for the destruction of a customer's records within its custody or control containing personal information which is no longer to be retained by the business by (1) shredding, (2) erasing, or (3) otherwise modifying the personal information in those records to make it unreadable or undecipherable through any means."
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