Credit information disposal requirements

Under the Fair and Accurate Credit Transactions Act (FACTA) a business must take reasonable measures to guard against unauthorized use or disclosure of disposed credit information.

They may determine an appropriate method of destruction of the data. Paper documents may be subjected to shredding or other destruction.

Wiping, reformatting, or physical destruction of electronic media are common methods of adequate disposal.

It is recommended that the employer define policies and procedures which identify individuals responsible for handling consumer data, limit disclosures and use of the data for the proscribed purpose, and oversee proper disposal of consumer information.