FEDERAL SHREDDING LAWS
Health Insurance Portability and Accountability Act
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) was created to provide guidance for health care providers concerning the privacy of their patients medical records. This regulation was in response to the large number of medical records that are in the electronic format, however, it also addresses how to safeguard the patients paperwork. The medical field is tasked with taking steps to safeguard Personal Health Information to protect individuals from identity theft, employment discrimination, or harm to an individuals reputation. Shredding the papers is considered a proper disposal method as to make the medical record "essentially unreadable, indecipherable, and otherwise cannot be reconstructed".
This federal regulation requires financial institutions to protect any consumer information that they collect. Financial institutions are any companies that offer loans, financial advise, or insurance. Car dealerships that offer financing along with mortgage brokers are subject to this regulation. Financial institutes that are under the Gramm-Leach-Bliley Act must tell consumers about their information sharing policies along with providing consumers with the option to "opt out" if they are opposed to having their confidential information shared with certain third parties.
Part of the Safeguards Rule states that paper that contains sensitive and confidential information should be shredded and that financial institutes should strongly consider hiring a company who specializes in safeguarding and shredding paper.
The Fair and Accurate Credit Transactions Act of 2003
The Fair and Accurate Credit Transactions Act of 2003 is designed to improve the accuracy of credit-related reports for consumers. It gives individuals access to one free credit report per year, it also adds provisions to help prevent identity theft. Reasonable safeguards are to be in place to insure consumers confidentiality.
Hitech Act Enforcement
The Health Information Technology for Economic and Clinical Health Act was signed into law on February 17, 2009 to address privacy issues with electronic medical records. This act strengthens the civil and criminal enforcement of HIPAA. The maximum penalty under this Act is $1.5 million which could destroy or debilitate any sized business. As you can see this is a very good reason to have your hard drives destroyed on site to ensure this information is protected.Contact Us