What is the Fair and Accurate Credit Transactions Act (FACTA)?
The Fair and Accurate Credit Transactions Act (FACTA) is a federal law that was enacted in 2003, and it applies to all states including Massachusetts. It is designed to protect consumers from identity theft. FACTA sets rules for how companies, organizations, and government agencies must protect personally identifiable information (PII) from unauthorized access and use. Under FACTA, businesses must take reasonable steps to protect the security, confidentiality, and integrity of PII. This means they must have appropriate physical, technical, and administrative safeguards in place that protect personal information from unauthorized access. FACTA also sets limits on how consumer credit reports can be used for marketing purposes. It requires companies to provide a summary of a consumer’s credit report to the consumer before providing them with any marketing materials. This allows consumers to review what information is being shared with marketers. FACTA also created the Consumer Financial Protection Bureau (CFPB). The CFPB is a federal agency that is responsible for enforcing FACTA, as well as other consumer financial protection laws. The CFPB is empowered to take action against businesses that violate its rules, including levying fines and other penalties. In short, FACTA is a federal law designed to protect consumers from identity theft and ensure that their credit information is being used responsibly. It sets limits on how companies can use consumer credit reports, requires them to have appropriate security measures in place, and created the CFPB to help enforce the law.
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