FACTA

Question 1

What is FACTA?

Answer 1

The Fair and Accurate Credit Transaction Act (FACT Act), which became law in 2003, is an extension of the 1970 Fair Credit Reporting Act.

Question 2

What are the main things FACTA accomplishes?

Answer 2

• Gives consumers access to one free credit report per year
• Creates a national fraud alert system
• Requires that only the last 5 digits of debit/credit card numbers be printed on receipts
• Gives the consumer the right to contact the creditor/furnisher of negative information directly and request an investigation
• If a consumer misses payments, the creditor must notify him within 30 days after reporting this to a CRA
• Any business that deals with consumer report information must dispose of it properly.
• Lenders must give applicants a copy of the National Credit Score Disclosure form
• Red Flags rule requires financial institutions to recognize and respond to activity that might indicate identity theft.