Are there rules to the destruction of business records?

Yes, under TREC rule 535.2(h) brokers are required to maintain certain records for a minimum period of four years. It is up to each individual broker to determine if they wish to keep the records for longer than that period. Some of the required records to be maintained will have personal identifying information of clients. With regards to these records certain rules apply.

Under the Texas Business and Commerce Code, Section 72.001 the law provides that when records are going to be destroyed, and these records contain personal identifying information of a customer, “the business shall modify, by shredding, erasing, or other means, the personal identifying information so as to make the information unreadable or undecipherable.” The law was passed in 2009 as part of reforms to protect consumer information.

Within the law it provides that if a company hires a professional company in the business of destroying such records, then the company is presumed to have complied with the law. The attorney general has the ability to sanction any company in violation of the law with a civil penalty of up to $500 per each business record.

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