Document Shredding Laws
When it comes to shredding any material, Eco Shred, LLC follows the laws and acts of HIPAA, FACTA, and the Sarbanes-Oxley act. Handling sensitive medical, accounting, and legal documents should always be done with security and safety in mind.
To ensure every customer's security and trust we abide with the following:
HIPAA
The Health Insurance Portability and Accountability Act (HIPAA), enacted in 1996 guarantee that healthcare organizations (doctors, hospitals, medical billing companies) will be responsible for the secure handling and storage of private health information. The goal of this legislation is to ensure proper security and privacy for any health information, while reducing healthcare fraud and abuse.
For any noncompliance of this Act, filing of civil and criminal charges may occur. These charges may be against both the company and those who work with or for the company. Penalties may result in:
- Civil fines up to $25,000
- Criminal penalties up to $250,000 and/or up to 10 years in prison
To ensure that your company complies with HIPAA regulations, the destruction of all personal health information should occur. Such information may include billing records, prescriptions, and patient medical records.
FACTA
The Fair and Accurate Credit Transaction Act (FACTA), enacted in 2003, establishes uniform national standards in the regulation of handling and disposal of consumer information in the possession of all companies and organizations. This Act can also be applicable to the average American. FACTA states that the destruction of all consumer information must occur before it is discarded. According to the Act, destruction of consumer information may come through the "shredding of papers containing consumer information." Proper destruction of consumer information must occur, in order to eliminate identity thief. Identity thief occurs through the improper disposal of personal information.
Per this Act, companies or individuals are able to enter into agreements with other parties who are in the business of the destruction and disposal of confidential consumer information. This business must comply with FACTA.
The Sarbanes-Oxley Act
The Sarbanes-Oxley Act, enacted in 2002, introduced highly significant legislative changes to financial practice and corporate governance regulation. The primary intent of the Sarbanes-Oxley Act is to force ALL public companies to promptly make available and maintain all meaningful business related information in order to protect the investing public. This Act also aids in deterring fraud and corruption, ensuring justice for wrongdoers and protection the interests of workers.
While Sarbanes-Oxley requires companies to maintain sufficient records, cleansing your records of old, extra, or unnecessary files is necessary in business. In today's society, the proper documented disposal of records is essential to the survival of any business.
Eco-shred ensures your documents are handled carefully and securely through each step of our paper shredding process.