---
title: "FACTA Disposal Rule: What Businesses Are Required to Destroy"
description: Shred old records and protect your identity. Shred America offers secure paper and electronics destruction with mobile trucks & nationwide drop-off sites.
image: https://knowledge.shredamerica.com/hubfs/factablog.png
---

# FACTA Disposal Rule: What Businesses Are Required to Destroy

## FACTA Disposal Rule: What Businesses Are Required to Destroy

The Fair and Accurate Credit Transactions Act (FACTA) Disposal Rule is designed to reduce the risk of identity theft by requiring businesses to properly dispose of sensitive consumer information. But what exactly falls under this requirement—and who needs to comply?

### What Information Must Be Destroyed?

Under the FACTA Disposal Rule, any business or individual that uses or possesses **consumer report information** must take reasonable measures to securely dispose of it. This includes:

- Credit reports
- Credit scores
- Payment histories
- Any information derived from a consumer report

If your business accesses this type of data for decision-making—whether for lending, leasing, hiring, or other purposes—you are responsible for ensuring it is destroyed securely when no longer needed.

### Employee Background Checks Count Too

Many businesses don’t realize that **employee background checks** also fall under FACTA. If your company runs background screenings for hiring purposes, the reports you receive contain consumer report information.

That means once those records are no longer required to be retained, they must be disposed of properly—typically through shredding, pulverizing, or secure digital destruction. Simply throwing them in the trash or recycling bin is not compliant.

### What Happens If You Don’t Comply?

Failure to follow the FACTA Disposal Rule can lead to serious consequences. Regulatory agencies have taken **enforcement actions** against businesses that improperly disposed of sensitive information, resulting in:

- Financial penalties
- Legal liability
- Reputational damage
- Increased risk of data breaches and identity theft

Even unintentional violations—like inadequate disposal practices—can put your business at risk.

### Why It Matters

FACTA compliance isn’t just about avoiding fines—it’s about protecting your customers, employees, and your business. Implementing secure disposal practices, such as partnering with a certified shredding provider, ensures sensitive information is handled responsibly from start to finish.

In today’s environment, proper data destruction isn’t optional—it’s essential.

Shred America has high security mobile shredding trucks that can come to you, or you can use our [ interactive map](https://shredamerica.com/findlocation) to find one of many secure drop-off locations around the country.

In any case, feel free to [contact Shred America](https://shredamerica.com/contact-us) to fulfill any of your paper or electronic destruction needs today. 

© 2026 Shred America, LLC - All rights reserved.

- Mar 25, 2026 9:00:01 AM

- Share this post
- - [Tweet](https://twitter.com/share)

### Join Our Mailing List!

### Recent Posts

### Posts by Tag

- [Data Security (47)](https://knowledge.shredamerica.com/tag/data-security)
- [Identity Theft (40)](https://knowledge.shredamerica.com/tag/identity-theft)
- [Business Shredding (39)](https://knowledge.shredamerica.com/tag/business-shredding)
- [Paper Shredding (29)](https://knowledge.shredamerica.com/tag/paper-shredding)
- [Secure Documents (29)](https://knowledge.shredamerica.com/tag/secure-documents)
- [Document Shredding (27)](https://knowledge.shredamerica.com/tag/document-shredding)
- [Risk Management (27)](https://knowledge.shredamerica.com/tag/risk-management)
- [NAID AAA Certification (22)](https://knowledge.shredamerica.com/tag/naid-aaa-certification)
- [privacy (22)](https://knowledge.shredamerica.com/tag/privacy)
- [Data Breaches (21)](https://knowledge.shredamerica.com/tag/data-breaches)
- [HIPAA (18)](https://knowledge.shredamerica.com/tag/hipaa)
- [Data Shredding (17)](https://knowledge.shredamerica.com/tag/data-shredding)
- [Declutter (17)](https://knowledge.shredamerica.com/tag/declutter)
- [Mobile Shredding (17)](https://knowledge.shredamerica.com/tag/mobile-shredding)
- [onsite shredding (16)](https://knowledge.shredamerica.com/tag/onsite-shredding)
- [Best Practices (15)](https://knowledge.shredamerica.com/tag/best-practices)
- [Secure Shredding (15)](https://knowledge.shredamerica.com/tag/secure-shredding)
- [Tax Season (15)](https://knowledge.shredamerica.com/tag/tax-season)
- [Data Protection Compliance (14)](https://knowledge.shredamerica.com/tag/data-protection-compliance)
- [computer recycling (14)](https://knowledge.shredamerica.com/tag/computer-recycling)
- [Customer Services (12)](https://knowledge.shredamerica.com/tag/customer-services)
- [Hard Drive (12)](https://knowledge.shredamerica.com/tag/hard-drive)
- [Laws & Regulations (12)](https://knowledge.shredamerica.com/tag/laws-regulations)
- [Personal Records (12)](https://knowledge.shredamerica.com/tag/personal-records)
- [destruction (12)](https://knowledge.shredamerica.com/tag/destruction)
- [Recycling Documents (11)](https://knowledge.shredamerica.com/tag/recycling-documents)
- [FACTA (10)](https://knowledge.shredamerica.com/tag/facta)
- [Residential Shredding (10)](https://knowledge.shredamerica.com/tag/residential-shredding)
- [pii (10)](https://knowledge.shredamerica.com/tag/pii)
- [security (10)](https://knowledge.shredamerica.com/tag/security)
- [Company Culture (8)](https://knowledge.shredamerica.com/tag/company-culture)
- [News (6)](https://knowledge.shredamerica.com/tag/news)
- [Records Storage (6)](https://knowledge.shredamerica.com/tag/records-storage)
- [GLBA (3)](https://knowledge.shredamerica.com/tag/glba)
- [OSHA Compliance (3)](https://knowledge.shredamerica.com/tag/osha-compliance)
- [Shred America Network (3)](https://knowledge.shredamerica.com/tag/shred-america-network)
- [Environmental Effects (2)](https://knowledge.shredamerica.com/tag/environmental-effects)
- [Healthcare (2)](https://knowledge.shredamerica.com/tag/healthcare)
- [Insider (2)](https://knowledge.shredamerica.com/tag/insider)
- [Medical Waste (2)](https://knowledge.shredamerica.com/tag/medical-waste)
- [Partner Blog (2)](https://knowledge.shredamerica.com/tag/partner-blog)
- [Taxes (2)](https://knowledge.shredamerica.com/tag/taxes)
- [document scanning (2)](https://knowledge.shredamerica.com/tag/document-scanning)
- [home shredder (2)](https://knowledge.shredamerica.com/tag/home-shredder)
- [Mom's Advice (1)](https://knowledge.shredamerica.com/tag/moms-advice)
- [Mother's Day (1)](https://knowledge.shredamerica.com/tag/mothers-day)
- [Shredding Advice (1)](https://knowledge.shredamerica.com/tag/shredding-advice)
- [Veteran (1)](https://knowledge.shredamerica.com/tag/veteran)
- [Veteran Owned (1)](https://knowledge.shredamerica.com/tag/veteran-owned)
- [onsite (1)](https://knowledge.shredamerica.com/tag/onsite)

[See all](https://knowledge.shredamerica.com/facta-disposal-rule-what-businesses-are-required-to-destroy#)

 Cookie Settings

```json
{
  "@context" : "https://schema.org",
  "@type" : "Organization",
  "address" : {
    "@type" : "PostalAddress",
    "addressCountry" : "US",
    "addressLocality" : "Fort Mill",
    "addressRegion" : "SC",
    "postalCode" : "29715",
    "streetAddress" : "3356 Hwy 51"
  },
  "contactPoint" : {
    "@type" : "ContactPoint",
    "contactType" : "customer service",
    "email" : "info@shredamerica.com",
    "telephone" : "+1-866-747-3387"
  },
  "logo" : "https://shredamerica.com/hubfs/raw_assets/public/Shred_America_June2023/images/ShredAmerica.svg",
  "name" : "Shred America",
  "sameAs" : [ "https://www.facebook.com/Shred.America.Official/", "https://www.linkedin.com/company/shred-america" ],
  "url" : "https://shredamerica.com/"
}
```