Fair and Accurate Credit Transactions Act

Below you will find information on the Fair and Accurate Credit Transactions Act (FACTA) which regulates how businesses or individuals dispose of “sensitive” information about a consumer.  The purpose of the regulation is to ensure the proper disposal of information to protect against “unauthorized access to or use of the information.”

Although the Disposal Rule applies to consumer reports and the information derived from consumer reports, the FTC encourages those who dispose of any records containing a consumer’s personal or financial information to take similar protective measures.  FACTA defines the term consumer report to include information obtained from a consumer reporting company that is used – or expected to be used – in establishing a consumer’s eligibility for credit, employment or insurance among other purposes. 

The Rule requires reasonable and appropriate disposal practices to prevent the unauthorized access to – or use of – consumer information.  Examples given include: shredding, pulverize, or burning papers containing consumer report information so that the information cannot be read or reconstructed.  Included in the Rule are electronic files or media which contain consumer report information.  This would include computer hard drives or other electronic information saving equipment.

You can find additional information about the Rule at:

www.realtor.org/GAPublic.nsf/Pages/factact
www.ftc.gov/opa/2005/06/disposal.htm

FTC Business Alert (148k)
FACTA Q&A (93.7k)
FTC Federal Register publication (104k)
FACTA Rules and Regulations (107k)

If we can be of additional assistance, please feel free to contact Chris Galler: cgaller@mnrealtor.com