What is FACTA?
- Definition
- FACTA (Fair and Accurate Credit Transactions Act) requires businesses that maintain consumer information to properly dispose of it, including destroying electronic records on retired equipment.
The Fair and Accurate Credit Transactions Act (FACTA), enacted in 2003, amended the Fair Credit Reporting Act and includes the Disposal Rule, which requires businesses and individuals who possess consumer information to take reasonable measures to dispose of it properly.
The Disposal Rule applies broadly to any business that maintains consumer information derived from consumer reports — not just financial institutions. This includes employers who conduct background checks, landlords who pull credit reports, and any business that collects consumer data. When IT equipment containing this data is retired, it must be properly sanitized.
FACTA's Disposal Rule requires "reasonable measures" for destruction, which the FTC interprets to include burning, pulverizing, or shredding paper records and destroying or erasing electronic media so that information cannot practicably be read or reconstructed. Using a certified ITAD provider and maintaining certificates of destruction demonstrates compliance with FACTA's disposal requirements.
Need Help with FACTA?
Our team can answer your questions and help you find the right solution for your organization.