What is the Fair and Accurate Credit Transactions Act?

The Fair and Accurate Credit Transactions Act (FACTA) is a federal law that helps protect consumers from identity theft and fraud. It was passed in 2003 and amended the Fair Credit Reporting Act (FCRA). FACTA applies to all states, including Texas. FACTA has two major protections. First, it gives consumers the right to receive a free credit report annually from the three major credit reporting agencies. This way, consumers can monitor their credit activity to be sure that no one has opened accounts or taken out loans in their name without their knowledge. Second, FACTA requires that companies use reasonable security measures to protect consumers’ personal data. This could include encrypting consumer data and using complex passwords. Companies are also required to shred any documents that contain personal consumer information once they are no longer needed. FACTA also provides for free fraud alerts, which consumers can place on their credit reports if they have been the victims of identity theft. In addition, FACTA helps consumers dispute incorrect information on their credit reports, and provides a way for consumers to recover damages if they do suffer identity theft. Ultimately, FACTA provides protections for consumers and helps them avoid identity theft and fraud. It also gives them the right to review credit reports and dispute any information on them that may be incorrect or fraudulent.

Related FAQs

What is the Consumer Leasing Act?
What is the Fair and Accurate Credit Transactions Act?
What is a loan originator?
What is the Electronic Signatures in Global and National Commerce Act?
What is the Bank Holding Company Act?
What is the Home Mortgage Disclosure Act?
What is the federal Bank Holding Company Act?
What is the U.S. Bankruptcy Code?
What is the Electronic Funds Transfer Act?
What laws protect personal banking information?

What is the Fair and Accurate Credit Transactions Act?

Related FAQs

Related Blog Posts