Fair and Accurate Credit Transactions Act

The Fair and Accurate Credit Transactions Act(FACTA) is a law in the United States. It was passed through the United States Congress on November 22, 2003, and signed by President George W. Bush on December 4, 2003.http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_public_laws&docid=f:publ159.108.pdf This law is an amendment to the Fair Credit Reporting Act (FCRA).

This law allows consumers to obtain one free copy of their credit report each year from each of the three major consumer credit reporting agencies: Equifax, Experian, and TransUnion. FACTA is laid out to help protect consumers from identity theft and to help victims of identity theft restore and protect their credit and identity in the future.http://www.consumerlaw.org/issues/facta/nclc_analysis.shtml

Details of the Fair and Accurate Credit Transactions Act

Fraud Alerts

The Fair and Accurate Credit Transactions Act allows for the consumer to add fraud alerts to their account if there has been fraudulent activity, or if there is a possibility of fraudulent behavior. The fraud alert will remain on the account for 90 days. Members of the Armed Forces can place an active duty alert on their accounts. This alert will accompany any requested credit reports for 12 months.

Credit and Debit Card Numbers

Receipts with credit and debit card numbers were one of the main ways that identity thiefs acquired the information needed to gain access to your accounts. FACTA prohibits a business from printing more than the last five digits of an account number.http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_public_laws&docid=f:publ159.108.pdf

Blocking Information that is a Result of Identity Theft

The Fair and Accurate Credit Transactions Act requires the reporting agencies to block and withhold information in a credit report that has been marked by the consumer as information that is on the report due to an identity theft.http://www.consumerlaw.org/issues/facta/nclc_analysis.shtml

Red Flags Rule and Identity Theft Prevention

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Red Flags Rule and Identity Theft P...

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This featured video gives you an in-depth explanation of the red flags rule. This rule was implemented as a way to combat identity theft. It requires financial institutes to have Identity Theft Prevention Program in place to help prevent, detect, and eliminate identity theft in both new and old accounts.

Disclaimer

The content in this page is not a substitute for professional financial advice. Please contact a finance professional before using the information presented here.