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 to protect consumers in North Carolina and across the United States from identity theft. FACTA is intended to enhance data security and consumer privacy protections by requiring businesses and organizations to protect any consumer information they collect. Under FACTA, businesses and organizations must implement security measures to protect customer information such as credit card information, Social Security numbers, and financial account numbers. This includes implementing measures such as strong password protections, firewalls, and encryption technologies. FACTA also requires that businesses and organizations provide consumers with notice of their privacy policies. This notice must include information on how consumer information is used, how it is protected, and who it is shared with. FACTA also gives consumers the right to dispute inaccurate credit reports made by a business or organization. In addition, FACTA requires that businesses and organizations properly dispose of consumer information that is no longer being used. This includes shredding documents that contain consumer information, erasing consumer information from all computer systems, and properly disposing of all equipment that may contain consumer information. Finally, FACTA allows consumers to place a fraud alert on their credit report if they have been a victim of identity theft. This alert requires all businesses and organizations to verify the identity of the consumer before granting them access to their credit or other financial information. This provides another level of protection for consumers in North Carolina and across the United States.

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

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