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Storage and Destruction of Customer Records
Beginning June 1, 2005,
federal law will require the proper storage and disposal of consumer
credit reports and related information. This rule aims to protect
consumers from “dumpster diving” by identity thieves. The rule is part
of the Fair and Accurate Credit Transactions Act of 2003 or FACTA, which
generally aims to prevent consumer fraud.
This new federal law merely serves as a reminder that those who handle
consumer credit reports and customer information must currently comply
with even stricter California law. Under existing California law, “a
business shall take all reasonable steps to destroy, or arrange
for the destruction of a customer's records within its custody or
control containing personal information which is no longer to be
retained by the business by (1) shredding, (2) erasing, or (3) otherwise
modifying the personal information in those records to make it
unreadable or undecipherable through any means.” California Civil
Code § 1798.80
In addition, the statute further defines "Personal
information" as: any information that identifies, relates to, describes,
or is capable of being associated with, a particular individual,
including, but not limited to, his or her name, signature, social
security number, physical characteristics or description, address,
telephone number, passport number, driver's license or state
identification card number, insurance policy number, education,
employment, employment history, bank account number, credit card number,
debit card number, or any other financial information. California
Civil Code § 1798.81
Failure to comply with the above laws can result in
a fine ranging from $500 to $3,000. |
