|
|
 |
 |
 |
Return to "Press Releases"
FACTA Compliance - Study Shows businesses don't know the Facts on FACTA
Small business owners still need information and education to comply with the
act
ITASCA, Ill. (September 20, 2005)-More than three months after the latest
provision of the Fair and Accurate Credit Transactions Act (FACTA) went into
effect, a survey by zTelligence and Fellowes Inc. showed that small business
owners are still unfamiliar with FACTA and the significant impact it can have
on their business.
The results from an online poll taken in July of 2005 of over 500 small
businesses found very few businesses are aware of FACTA. When asked what acts
or regulations they had heard of, FACTA was recognized by only 13.1% of
respondents.
Enacted in 2003 with the final provision taking effect on June 1, 2005, FACTA
requires all business owners to properly dispose of personal information that
is derived from consumer reports. Anyone that does not comply could be subject
to penalties if found liable.
Familiar with FACTA?
Of those respondents who recognized FACTA, over half (53 percent) had little or
no knowledge of the legislation's general principles and 64 percent had little
or no knowledge of penalties for non-compliance. Respondents who recognized
FACTA were also unfamiliar with the types of documents that need to be
destroyed (56.4 percent) and when the legislation went into effect (58.9
percent).
FACTA's Effect?
Before FACTA, more than one-third of small business owners surveyed who heard
of FACTA never disposed of personal information, and of those who did dispose
of personal information, (one-fourth) threw the documents in the trash without
destroying them. Now that FACTA is in effect, nearly 60 percent said they would
shred documents.
The Upside with FACTA Aficionados
While there is a disconnect between what FACTA is and how the provision will be
enforced, 43.1 percent of respondents knowledgeable about FACTA said it would
be helpful to have more information about the legislation and its standard of
compliance, with 34.7 percent indicating that they would turn to the Internet
for FACTA information.
Among the same group, shredding is the most popular method of destruction (58.5
percent) followed by burning (11.1 percent), tearing up (8.3 percent) and
pulverizing (1.4 percent). There are still a number of businesses (8.3 percent)
who throw the documents away and another 11.1 percent who dispose of documents
by "other" means.
"Based on the survey results, it's clear there is a need in the business
community for more education on the provision and how it helps combat identity
theft," said John Fellowes, Shredder Marketing Manager, Fellowes Inc. "Identity
theft affects everyone it touches. Victims not only suffer financial damage,
but emotional distress as well."
FACTA, Gramm-Leach-Bliley, the Identity Theft Act and Privacy State Laws are
some of the recent legislation enacted by the government to combat identity
theft. Generally, the Federal Trade Commission recommends destroying records
containing consumer information, and one of the more convenient and cost
effective ways to comply with FACTA is shredding.
"While shredders are an important part of properly destroying personal
information to curb identity theft, we feel it is just as important to educate
businesses on new legislation like FACTA," said John Fellowes. "That's why we
want to not only provide information on our shredders, but get our customers
the facts on FACTA."
Small business owners can find out everything they need to know about FACTA by
visiting www.fellowes.com. The site features an online resource guide for FACTA
information and suggests ways businesses can ensure compliance.
|
|
|
|
|
|
|
|
|
|
|
|
Copyright ©2008, Fellowes, Inc. All Rights Reserved
|
|