Los Angeles Shredding And Ftc Red Flag Rules

By Author: Sergeant Shredding
Total Articles: 10
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You probably haven’t heard of the FTC Red Flag Rules but it’s a fairly recent law which mandates businesses to come up with strategies to find weak points that can be exploited by identity thieves. These are called the “red flags” and your job is spot them and make the necessary changes to prevent them from happening. When it comes to Los Angeles paper shredding process, it’s also covered by the regulations set by the Federal Trade Commission (FTC), which took effect three years after it was enacted in 2007.

But I’m not in the business of financing …

Indeed, this is often the misconception about the Red Flag Rules, that they only cover financial institutions. A provision in the law, however, requires that “creditors” should comply with them as well. And who are these creditors? The law is vague on that one but the creditor is described as any business or organization “that regularly provide goods and services first and allow customers to pay later.” The FTC further qualifies this when it says in its website that if you “invoice for goods or services” then you are covered ...
... by the Red Flag Rules. This makes it even necessary to hire Los Angeles Paper Shredding companies.

How the Red Flag Rules relate to shredding

Shred It Los Angeles can provide you with a certificate of destruction which serves as evidence that you are complying with the FTC regulations. But this doesn’t insulate you from lawsuits, however, in case the company you have chosen bungled on the destruction process and your classified information ends up in the wrong hands. What happens in this scenario is the consumer will file a complaint before the FTC which will then sue you. You will pay a hefty fine as a result. That is exclusive of the possible private lawsuit that you will face in case the leaked information is used by the identity thief to make money on your customer’s behalf.

What are your options?

The FTC is not the only law you should be worried about when it comes to data protection. You also have the Health Insurance Portability and Accountability Act (HIPAA), Gramm Leach Bliley (GLB) and Fair and Accurate Credit Transactions Act of 2003. Shred It Los Angeles can help you protect your data by destroying them in accordance with the regulations set by the law. For a little over a few dollars for each destruction process, you get peace of mind in return.