How the FACT Act
Can Help You i
The Fair and Accurate Credit Transaction Act (FACTA) was designed to fairly regulate access to consumers' credit information, ensure the accuracy of that information, and provide consumer protection from unfair credit practices and credit fraud that results from identity theft. It was created in 2003 as an amendment to the Fair Credit Reporting Act (FCRA).
Some of the consumer protections we take for granted today were created by this act, and there may be less common protections we may not know exist. As always, being aware of your rights can help ensure them. This page touches on some of the ways the FACT Act can help you:
Your Free Annual Credit Report
Under FACTA, consumers have a right to get their free annual credit report from each of the three major credit bureaus (Equifax, Experian and TransUnion). It is important to review your credit report regularly to check for unusual activity caused by identity theft, or inaccuracies that may lower your score. The bureaus charge a fee for accessing and reviewing your credit report, but FACTA ensures that you can get one report from each bureau every year. You also have a right to obtain your three-digit credit score will as well as an explanation of factors that contribute to your score.
The bureaus may try to charge you for other services such as credit monitoring or the ability to view your report and score year round. But, since December 1, 2005, you are entitled to see your three credit reports free every 12 months. State laws may provide you with additional free annual credit reports.
The act also requires that consumers have access to all three reports through once central source so that they are not forced to track down their credit information from multiple places. The bureaus established www.AnnualCreditReport.com. You can also contact this central source by calling 1-877-FACTACT (322-8228). As with all financial websites, make sure you are on the right page before submitting personal financial information.
Identity Theft Protection
FACTA also protects against identity theft in several ways. The act lets consumers place fraud alerts on their credit histories if they suspect they are victims of identity theft, or if they are in the military and unable to check their credit report. By placing alerts on their credit reports, consumers can make it more difficult for identify thieves to apply for credit under their names because the credit bureaus must then follow strict rules to ensure all future requests are from the consumer.
The act protects against identity theft in other ways as well. The Fair and Accurate Credit Transaction Act:
- Requires merchants exclude all but the last five digits of a customer's credit card number on all receipts.
- Created a national system of fraud detection so that victims don't have to contact each creditor and each credit bureau about the theft. Now identity theft victims only need to contact the FTC.
- Requires that banks identify patterns common to identity theft, and stop it before it causes major damage.
Uniform National Standards
Another way FACTA helps protect consumers is by establishing national standards for new and existing credit protections. Access to your credit report and identity theft deterrents will not help you if they do not apply to your state. The FACT Act made permanent uniform national standards that set clear rules about what information the credit bureaus can include in consumer's credit reports.
Financial Education for Consumers
The FACT Act also created the Financial Literacy and Education Commission to educate American consumers. Educational materials on financial topics such as retirement planning, investment, credit and taxes can be found online at www.mymoney.gov. The commission can also be reached by calling 1-888-mymoney (696-6639). Information on the website is in English and Spanish.
Learn more about the Fair and Accurate Credit Transaction Act (FACTA):
- FACTA Full Text (PDF)
- Privacy Rights Clearing House (Fact Sheet)
- The White House (Press Release)
- Federal Trade Commission (Press Release)
i Debt Shield, Inc. is not a law firm and nothing contained herein shall be construed as legal advice. If you require legal advice, you should seek counsel of an attorney licensed in your jurisdiction.
