Financial institutions regularly review and collect private personal information for their clients. Everything from identity tracking information to bank account numbers is part of daily business. Without careful observation of disposal laws, it is all too easy to allow this information to fall into the wrong hands. Mobile shredding services can help financial institutions remain compliant by conclusively destroying documents promptly and securely.
Shredding Services Protect Your Institution
Financial institutions need shredding services for protection. There are laws requiring compliance, and failure to adhere to those laws can jeopardize your business. Violation of compliance laws can result in costly fines, penalties, and even jail time that can leave a permanent black mark on your business’s reputation. Any financial institution, whether a commercial bank, investment bank, investment company, brokerage, insurance company, lender, or escrow company, cannot afford to neglect its own well-being by being noncompliant with state and federal laws.
Being Compliant
Being compliant requires following all federal and state laws regarding how your financial institution handles and disposes of certain types of documents. The Gramm-Leach-Bliley Act requires financial institutions to explain information-sharing practices with customers or clients and to safeguard sensitive data. The Safeguards Rule, instituted by the Federal Trade 
Commission, requires companies to have a written information security plan that is regularly monitored, tested, and evaluated. The FTC’s Disposal Rule requires that businesses take reasonable measures to guard against unauthorized access or use of information by using practices such as burning, pulverizing, or shredding documents. Some laws allow customers that are injured by your institution’s violation of the law to recover damages through civil action.
Hiring a Documents Disposal Company
Taking reasonable measures to control information and data flow, especially regarding document disposal, protects you in the event of a court case or regulatory action. A professional shredding service can help your financial institution be compliant and provide a Certificate of Destruction for all services. Shredding Mobile offers on-site shredding with professionally trained personnel for on-demand or ongoing documents destruction needs. Taking advantage of these services will help you stay compliant with federal and state laws, protect your reputation, and lower punitive damages.