What are the Penalties in the FACTA Disposal Rule?
The Disposal Rule, as part of the Fair and Accurate Credit Transactions Act ("FACTA") amendment to the Fair Credit Reporting Act ("FCRA"), imposes penalties for non-compliance with the disposal provisions, as with violations of any other FCRA provisions. If the business’ disposal practices are not compliant with the Rule and results in the theft of someone’s identity, that business can face:
• Lawsuits by the victimized individuals
• Class action lawsuit by multiple victims
• State fines of $1000 per willful or negligent violation
• Federal fines of up to $2500 per incident
Actions for claims of violations can be brought within two years from the date of discovery of the violation, or five years from the actual violation.
In determining damages and liability, the courts are permitted to take into account the business’ degree of guilt and their history of prior similar conduct.
For more information, see here: https://www.ftc.gov/legal-library/browse/statutes/fair-accurate-credit-transactions-act-2003
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