It's the law

FACTA Disposal Rule Goes into Effect June 1, 2005 A new federal rule states any business or individual who uses a consumer report for a business purpose is subject to the requirements of the Disposal Rule, a part of the Fair and Accurate Credit Transactions Act of 2003 (FACTA), which calls for the proper disposal of information in consumer reports and records to protect against "unauthorized access to or use of the information."

AZ Gov. Janet Napolitano signed House Bill 2484
The Bill, referred to as the Personal Identification Information Records and Disposal Act, goes into effect Oct. 1st, 2006. The law states, "An entity must not knowingly discard or dispose of records or documents without redacting the information or destroying the records or documents if the records or documents contain an individual's first and last name or first initial and last name in combination with any of the following: Social Security number; credit card, charge card or debit number; savings, checking or securities entitlement account number; or driver license number or non-operating identification license number.

Under the law, the civil penalty for violations will not exceed $500 for a first violation, $1,000 for a second violation and $5,000 for a third or subsequent violation. The attorney general or the county attorney in the county where the records or documents were wrongly discarded can enforce the law.

HIPPAA-Health Insurance Portability and Accountability Act. Go to www.hippa.org for more information on HIPPA.

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