What is the Fair and Accurate Credit Transactions Act (FACTA)?

The Fair and Accurate Credit Transactions Act (FACTA) is a federal law that was passed in 2003 to protect consumers from identity theft. The law requires certain entities to properly dispose of consumer data that they have obtained to protect the security of consumers’ personal information. FACTA has been adopted in the state of Arizona, which means it applies to any organization that collects information about Arizona residents, including businesses, financial institutions, government agencies, and universities. Under FACTA, companies must make sure they securely dispose of any consumer information they have collected. This includes disposing of records in a way or manner that renders it unreadable or indecipherable to prevent criminals from using the information. Organizations in Arizona that are subject to FACTA must also implement reasonable security procedures to protect consumer information. This includes making sure physical and electronic records are kept in a secure environment, and that confidential information is only accessed by authorized personnel. FACTA also requires companies to provide consumers with an annual free credit report from each of the three major credit reporting agencies. This free report can help consumers identify if their personal information is being used for fraudulent purposes. The law also allows consumers to place a fraud alert on their credit report if they suspect identity theft. Finally, FACTA provides consumers with a right to sue companies for damages that occur as a result of their failure to comply with the law and its requirements. This means that if companies do not properly protect a consumer’s data, they can be held liable for any losses that result from their negligence.

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What is the Fair and Accurate Credit Transactions Act (FACTA)?

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