FACTA Law and Paper Shredding in Louisville

FACTA stands for "Fair and Accurate Credit Transactions Act", a law that became effective in June 2005. The FACTA law requires companies that have one or more employees to provide them with proper document disposal equipment. In other words, according to the FACTA Law, important personal or business related documents have to be discarded in a safe way that thoroughly eliminates chances of identity theft. The best way of complying with the new FACTA is to hire a paper shredding service like A Plus Paper Shredding in Louisville, the most protected and successful method of removing information and eliminating sensitive documents.

Increased protection since HIPAA
Only a few businesses are aware of all the requirements of the FACTA Law. The Fair and Accurate Credit Transactions Act specifies a series of penalties for businesses that are not complying with it. FACTA law increases personal ID protection for employees and reduces the chances of identity theft from happening. The FACTA law was created to protect employee information and it followed the footsteps of HIPAA (Health Insurance Portability and Accountability Act of 1996).

Nuts and bolts of paper shredding

Regardless of how big or small your company is, if you store information that holds peoples personal data such as names, addresses, account numbers bank details, medical records etc, you have the same obligation to ensure that when the time comes, information is destroyed effectively so that no details can be retrieved from the documents once it leaves your premises.

As soon as you take personal details from any client, the format you hold that information on is always under the protection of the company who stores that information, that includes when it is on the premises as well as when it leaves the premises destroyed. If any information is discovered at a later date, the company is still held liable regarding the protection of that information.

Smaller businesses may think that they do not have enough paper documents which may warrant using a specialised offsite company to destroy their data, however, any small amount of paper documents still come under the same data protection laws and are therefore just as important when it comes to destruction as are the larger companies who hold more information.