fair and accurate credit transactions act

FAIR AND ACCURATE CREDIT TRANSACTIONS ACT FREE

Each business has its own distinct operations and activities, a “red flag” action taken by a customer at one business may not be considered a “red flag” activity by another business. A “red flag” in the context of the FACTA is any activity or pattern of activities that is suspicious and indicates the possibility of identity theft. In particular, it gives enforcement agencies the authority to take action on any violations of “red flag” rules.

Red Flag Rules: FACTA also includes many new rules that apply to businesses and financial service providers.

This includes telling applicants the so-called “risk-based-pricing” factors used in their decisions on loan applications, as well as any specific issues that they have noted on the consumer’s credit report

Mortgage Lender Disclosures: FACTA places new requirements on mortgage lenders to disclose the credit scores and other factors that influence their decisions about whether or not to approve a mortgage loan application.

Some examples of these protections are as follows: In addition to the provisions intended to reduce identity theft, FACTA also contains measures whose goal is to strengthen consumer protection more generally. Unfortunately, identity theft has continued to increase since that time, because of an increase in e-commerce, social networking, and other online activities. Bush in response to an increase in the incidence of identity theft. Similarly, consumers can now register fraud alerts on their own credit cards, in order to signal the authorities when suspected fraud has taken place.įACTA was passed under the administration of then-President George W. For example, the level of oversight that lenders, payment processors, and regulators must provide when searching for suspicious transactions has been increased. Theft: There is a provision that allows consumers to report identity theft directly to creditors, and not just credit reporting agencies.Īs a result of FACTA, numerous reforms have been implemented relating to the use and protection of consumer information.

Records of Fraudulent Transactions: Businesses are required to produce records of fraudulent transactions, so that consumers can prove they have been victims of identity theft.

Theft Information: The credit reporting agencies are required to stop reporting adverse credit information once a consumer establishes that they were the victim of identity theft

Shortened Numbers on Receipts: A requirement that credit card numbers be shortened on all receipts given by retailers, restaurants, etc.

This alerts creditors of the fact that they need to proceed with caution when extending credit in a consumer’s name

National Fraud Alert System: The Act also establishes a National Fraud Alert System, which allows consumers to alert their creditors of potential fraud.National specialty credit reporting agencies are agencies that maintain information on medical payments or records, tenant history, check-writing history, employment history, or insurance claims

FAIR AND ACCURATE CREDIT TRANSACTIONS ACT FREE

The national specialty credit reporting agencies must also provide one free credit report a year. The three credit reporting agencies are Experian, TransUnion and Equifax. This allows consumers to make sure that bank accounts, credit cards or other credit accounts have not been opened by other people using their name. Free Annual Credit Report: The three major credit reporting agencies are required to provide consumers with one free credit report a year.According to the FTC, the most important provisions of the FACTA include the following:

Fair and accurate credit transactions act