How did the Fair and Accurate Credit Transactions Act (FACTA) amend the Fair Credit Reporting Act (FCRA)?

FACTA added a new section to the FCRA that requires any person who maintains or otherwise

possesses consumer information, or any compilation of consumer information, derived from

consumer reports for a business purpose, to properly dispose of any such information or

compilation. The purpose of this provision is to reduce the risk of identity theft and other consumer

harm resulting from improper disposal of consumer information. The FTC and other federal agencies

have issued rules implementing this provision, which specify the reasonable measures that covered

entities must take to ensure secure disposal of consumer information, such as burning, pulverizing,

shredding, erasing, or otherwise modifying the information to make it unreadable or indecipherable

(16 CFR § 682.3). Reference: 1, 2, 3