The Law

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Below is the current legislation affecting the right to privacy - and that of your customers. One call to Shredright can help put you into full compliance!

The Fair and Accurate Credit Transaction Act (FACTA) will affect virtually every person and every business in the United States. It requires the destruction of consumer information before discarding. It was enacted to reduce identity theft and consumer fraud and it calls for strict penalties against violators. The destruction requirement goes into effect in June of 2005.

Gramm-Leach-Bliley Act of 1999, Title V states that financial institutions must keep all non-public client information private. Under SEC. 501 Protection of Nonpublic Information, the Privacy Obligation Policy states "it is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its customers and to protect the security and confidentiality of those customers' nonpublic personal information." It goes on to say that financial institutions are to "insure the security and confidentiality of customer records and information" (103).

Health Insurance Portability and Accountability Act (HIPAA). Enacted in 1996, HIPAA includes provisions intended to safeguard the privacy of patient health records. Regulations officially took effect on April 14, 2001. One example of an appropriate safeguard taken in order to protect patient confidentiality is "requiring that documents containing protected health information be shredded."

The United States Supreme Court has ruled that, once discarded, items left for waste collection are no longer protected as private property. Unscrupulous individuals, popularly referred to as "Dumpster Divers," are eager to get their hands on this information for abusive or criminal purposes.


	Identity Theft is on the rise, 1 in 4 persons in the United States will fall victim. How can someone steal your identity? Identity theft occurs when someone uses your personal information such as your name, Social Security number, credit card number or other identifying information, without your permission to commit fraud or other crimes.


	People whose identities have been stolen can spend months or years - and their hard-earned money - cleaning up the mess thieves have made of their good name and credit record.

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