What Is the FACTA Credit Law?
Curious about the FACTA Credit Law and how it works? Today, we’re breaking this particular credit law down and revealing how it protects you. Understanding your rights in the credit world can save you money and headaches. Keep reading if you’re ready to know more.
What Is the FACTA Credit Law?
The Fair and Accurate Credit Transactions Act is actually an amendment to the Fair Credit Reporting Act (FCRA). The amendment was added to further protect consumers against identity theft. It limits the ways consumer information may be shared. It also controls how this info is disposed of. Mainly, the FACTA is in place to reduce the risk of compromised data.
How Does the FACTA Protect Me?
The FACTA is in place to combat identity theft. If you’re a victim, you could see significant damage to your credit profile. At the turn of the century, our cashless economy led to this growing concern. So, in 2003, FACTA was enacted.
What You Need to Know About the FACTA Credit Law
Here are the FACTA “rules.” They largely center on consumer protection, security and privacy, and free credit reports.
• Consumers are able to access a free credit report every year.
• Fraud and active duty alerts will be posted for at least 90 days if theft is suspected.
• No full card numbers may appear on receipts. (No more than five digits may appear.)
• Victims of identity theft must be notified.
• Collection agencies must report charges due to identity theft to original creditors.
• Creditors should monitor “red flags” and alert consumers.
• Follow proper procedure when disposing of consumer reports and information.
This law empowers you. You now can retrieve your free credit report annually and monitor your own information, highlighting any inaccuracies that might point to identity theft. You can better protect yourself and your family this way.
Notable FACTA Provisions
A piece of the law says that if a fraud or active duty alert appears on your credit report, businesses must reach out to you if asked to extend a line of credit. They must call you on a telephone number you provided and take all measures necessary to confirm you’re not an identity thief.
FACTA also requires any identity-theft-related derogatory marks on your credit report to be blocked. And it helps recover the credit history of someone who’s recently been a victim.
Failing to Comply
If creditors and lenders fail to comply with FACTA and become a victim of data breach, they’ll be faced with expensive lawsuits and crippling fines. Further, their reputation will be ruined. This act holds them accountable: they certainly don’t want to find themselves in these headlines that surface almost monthly.
A Law for You
Identity theft is a scary scenario to consider. But the FACTA credit law gives you confidence and peace of mind that your identity and money are safe as you use credit cards.
It’s a great idea to get your free annual credit report if you haven’t done so this year. Review your profile for any inaccuracies. And certainly ones that point to your potential stolen identity.