Proper Document Shredding Services Are Essential for Compliance with HIPAA, FACTA, And Other Data-Protection Laws

For companies operating in areas of business covered by HIPAA, FACTA, Gramm-Leach-Bliley (GLB), and other similar regulations, the use of confidential shredding services aren’t a luxury; they’re basically the law.

These regulations were crafted specifically to protect consumers from having their personal information stolen by identity thieves, and target areas of business where the most potentially-damaging information is exchanged. Records such as credit reports, payment information, and medical histories must be kept absolutely secure.

A company which fails to do so risks huge – often crippling – fines and penalties if a data breach ever occurs. That’s why such businesses need fully licensed, insured, and secured document shredding services.

Data-Destruction Regulations and You:  Staying in Compliance with Confidential Shredding Services


The Health Insurance Portability and Accountability Act was instituted to protect patients’ health records, which are some of the most sensitive documents available. HIPAA mandates periods of time documents must be retained, as well as mandating their proper disposal after that period.  

Penalties for HIPAA violations are particularly steep. Fines can be as high as 1.5 million dollars per individual violation. For smaller entities, failure to comply can be absolutely ruinous.


The Fair and Accurate Credit Transactions Act covers how private information is handled in banking and credit decisions, including credit history and social security numbers. Nearly any entity which deals in loans is regulated under FACTA. Like HIPAA, penalties for non-compliance are extremely high, as well as being extremely damaging to a company’s reputation should a breach become public.  

In many cases, FACTA compliance also requires fully secured data destruction of older documents.

III. Gramm-Leach-Bliley Act

Similar to FACTA, the GLB Act also requires financial institutions to fully explain and follow through on their data-protection services. Part of GLB compliance involves having public, clearly-stated policies on data handling, retention, and disposal. Institutions, of course, must also be able to demonstrate that they are complying with these policies on demand.

Secure Document Shredding Makes Compliance Simple

There’s no reason for these regulations to be any more burdensome than they already are. When your business hires a secure document shredding company like Action Shred of Texas, every necessary step will be taken to protect the information on those documents.

Documents are taken, unseen, and locked in sealed containers. Those containers are then shredded intact, and the customer can often directly witness their destruction. The remaining shreds are then put through our paper recycling system, just to ensure there’s no chance of the data being pieced back together. Then the customer receives a Certificate of Destruction which demonstrates their adherence to regulation.

For more information on these regulations, and your options for compliance, please contact Action Shred of Texas today.


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