Medicare Supplement – Insurance Quotes

About FACTA

IS YOUR ORGANIZATION PREPARED FOR FACTA?

FACTA is “The Fair and Accurate Credit Transactions Act of 2003.” FACTA applies to any business or individual who possesses consumer information for an intended business purpose. It is fair to say – All companies in the United States are affected by FACTA. FACTA requires that all businesses – regardless of size and industry – properly protect the personal information they collect about their customers and employees. The official name for FACTA is “An act to amend the Fair Credit Reporting Act, to prevent identity theft, improve resolution of consumer disputes, improve the accuracy of consumer records, make improvements in the use of, and consumer access to, credit information, and for other purposes.” FACTA was designed to make companies responsible for protecting Personal Identifying Information. The objective of the law is to reduce the risk of identity theft and consumer fraud. Failure to abide by the law invites the FTC into your organization. For those entities not under the jurisdiction of the federal banking and financial regulators, the FACTA regulations are enforced by the Federal Trade Commission (the “FTC”).

Some organizations may elect to not comply with FACTA.

POSSIBLE NON-COMPLIANCE CONSEQUENCES
•Civil Liability – No Statutory Limitation
•Actual damages if identity is stolen as a result of corporate inaction. Or statutory damages up to $1,000 per individual (consumer or employee).
•Class-Action Lawsuits – No Statute of Limitations
•If large numbers of individuals are affected, the organization can be subjected to class-action suits with punitive damages.
•Federal Fines – Up to $2,500 for each violation.
•State Fines – Up to $1,000 for each violation.
•The unlimited statutory damages under FACTA have been described as a litigator’s dream.

FACTA Policy

This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. While every effort was made to provide current information at the time of its posting, neither the author nor the Company make any representation or warranty as to the accuracy or completeness of any information contained herein. No attorney-client or confidential relationship is or should be formed by use of the site.