What is the Fair and Accurate Credit Transactions Act?

The Fair and Accurate Credit Transactions Act (FACT Act) is a law passed in 2003 by the federal government in order to protect consumers from identity theft. The FACT Act gives consumers the right to access their credit reports and to dispute any errors or inaccuracies that may be present. It also requires companies to provide consumers with an annual free credit report as well as to put in place reasonable safeguards to protect against identity theft. Additionally, the FACT Act implemented a national criminal background check system in order to screen those applying for certain types of jobs. In Washington, the FACT Act provides better consumer protection when it comes to credit transactions. It is the law that credit reporting agencies must follow if they are to remain in compliance. Under the law, companies must update consumer credit files at least every 90 days. Additionally, companies must also provide consumers with a free credit report at least every 12 months upon request. The FACT Act also requires companies to inform consumers when their credit report has been used for loan application or employment purposes. These consumer protections were put in place to help ensure that credit transactions are fair and accurate, and to protect Washington consumers from fraud and identity theft. By following the FACT Act, credit reporting agencies, lenders, and employers can ensure that not only are consumers’ rights being respected, but that the safety and security of their financial information is also being protected.

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What is the Fair and Accurate Credit Transactions Act?

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