- The Fair and Accurate Credit Transaction Act (FACT Act) became law in 2003 and is an extension of
the 1970 Fair Credit Reporting Act (FCRA REG V)
(FCRA deals with CREDIT REPORTS, It’s in the name)
- The Fair and Accurate Credit Transaction Act (FACT Act) became law in 2003 and is an extension of the 1970 Fair Credit Reporting Act.
- The FACT ACT is primarily concerned with -
identity theft.
- The FACT ACT requires that the -
National Credit Score Disclosure is given to all home loan applicants when approved for a mortgage.
(This document will give the credit score used in making the decision to approve the loan.)
- FACTA requires that when a consumer applies for a home loan, he or she must receive the -
Home Loan Application Credit Score Information Disclosure
(which explains their rights under this law.)
- The FTC Red Flags Rule (Section 114) requires financial institutions and creditors to develop and implement -
written identity theft prevention programs.
260.Under the Red Flags Rule, financial institutions and creditors must develop a -
written program that identifies and detects the relevant warning signs — or “red flags” — of identity theft.
- The Red Flags program must also describe appropriate responses that would -
prevent and mitigate the crime and detail a plan to update the program.
- The Red Flags program must be managed by -
the Board of Directors or senior employees of the financial institution or creditor and include appropriate staff training and oversight of any service providers.
- The Red Flag rules require credit card issuers to verify the validity of -
any change of address received, prior to sending out new credit cards and/or statements to the new address.
- The FACT Act prohibits businesses from printing more than five digits of any customer’s -
credit/debit card number or expiration date on any receipt. The information must be shortened.
- The FACT Act allows a consumer to place a
fraud alert or freeze his/her credit report.
- The FACT Act requires businesses to dispose of (burn or shred) papers that contain -
consumer report information
( when that information is no longer needed. Businesses must destroy or erase electronic files or media so that information cannot be recovered.)
- Loan Originators must secure (lock up) all -
pending loan documents at the end of the workday.
- The FACT Act and the FTC allow a consumer to receive a free copy of his/her
credit REPORT (NOT CREDIT SCORE) once a year by visiting annualcreditreport.com.
- Any person who obtains a credit report without prior authorization, or a credit reporting agency employee who gives a credit report to an unauthorized person, maybe be fined up to
$5,000 or imprisonment for 1 year, or both.
(FOR OPTAINING A CREDIT REPORT WITHOUT PRIOR APPROVAL OR SHARING THE REPORT)
