Credit information disposal requirements

How credit records are disposed of is a management decision. But the requirements of the Fair and Accurate Credit Transactions Act (FACTA) must be followed. These require reasonable disposal measures be taken to guard against unauthorized use of disclosure of credit information. Some firms elect to handle these procedures themselves, while others retain specialized records disposal firms to comply with the law.

Records disposal organizations are stepping up to offer services to aid compliance. The covered entity is responsible to take reasonable steps to guard against unauthorized disclosure in the disposal process. This could require careful screening of individuals or entities who offer such services or are assigned by the employer to perform such services.

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