Established in 2003 to protect customers from identity fraud, The Fair and Accurate Credit Transactions Act (FACTA) consists of regulations by which relevant businesses must abide. Among these are auto dealerships, which have access to highly sensitive financial and personal data that could lead to identity theft if not properly handled.
There are a number of auto dealership rules that can land you in hot water if ignored:
- The Red Flags Rule states that a business must have a written plan for the possibility of identity fraud. This plan must consist of red flags that signify potential fraud and a planned course of action if these red flags are spotted.
- Security Breach Notification Laws vary by state and require businesses to notify their customers if there has been a breach of security.
- The Gramm-Leach-Bliley Act requires businesses to be transparent with their customers about what information they are collecting and with whom they are sharing it, as well as steps taken to keep sensitive information safe.
- The Disposal Rule, which is part of FACTA, obligates companies to take action and ensure proper disposal of sensitive customer information.
How Professional Shredding Helps
Keeping up with so many different rules and regulations is a challenging task to handle alone. When you partner with a professional shredding company, you can rest assured your car dealership complies with FACTA’s Disposal Rule.
In-house shredding is not only time-consuming, but the process lacks the quality assurance a professional shredder provides. Office shredders can’t shred documents as finely as a professional shredding service does, leaving a possibility for the information to be pieced back together. Professional shredding services also provide you with a certificate of destruction after your materials have been shredded, proving that you have done everything you need to remain compliant with the Disposal Rule.
Maintaining compliance with FACTA is vital for auto dealerships to stay in business. Contact us today to learn more about how EcoShredding works to destroy sensitive information that is no longer needed, keeping both your business and customers safe.