close
This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

The Fair and Accurate Credit Transactions Act

downloadDownload printPrint

Pssst… we can write an original essay just for you.

Any subject. Any type of essay. We’ll even meet a 3-hour deadline.

Get your price

121 writers online

blank-ico
Download PDF

The Fair and Accurate Credit Transactions Act (“FACTA”) is an amendment to the Fair Credit Reporting Act (“FCRA”) that was added in 2003 protect people from the threats of identity theft. FACTA created guidelines that determine the types of information which can be shared. These guidelines also affect privacy and authenticity of the information. This act allows individuals free access to their own credit reports and has created a nationwide alerts system.

Why Is FACTA Important to Your Business?

With the passing of FACTA, people are now allowed to request their credit reports free, once per year, from all three of the major credit reporting agencies (Equifax, Experion and Transunion). Not only were requirements placed to release consumer information regarding credit scores and factors influencing the price of a mortgage loan, but standards also were put into place that require lenders and regulators to be more proactive in spotting identity theft before it occurs by looking for suspicious patterns.

Red Flags

Financial institutions face a mandatory deadline of November 1, 2008, to comply 3 new FACT Act regulations referred to as the Red Flag Rules, section 114 and 315 of the Fair and Accurate Credit Transactions (FACT) Act.

According to a Business Alert issued by the Federal Trade Commission in June 2008, the Red Flag Rules apply to a very broad list of businesses including “financial institutions” and “creditors” with “covered account”. A “creditor” is defined to include “lenders such as banks, finance companies, automobile dealers, mortgage brokers, utility companies and telecommunications companies.” However, this is not an all-inclusive list.

The regulations apply to all businesses that have “covered accounts”. A “covered account” includes any account for which there is a foreseeable risk of identity theft. For example, credit cards, monthly billed accounts like utility bills or cell phone bills, social security numbers, drivers license numbers, medical insurance accounts, and many others. This significantly expands the definition to include all companies, regardless of size that maintain, or otherwise possess, consumer information for a business purpose. Because of the broad definitions in these regulations, few businesses will be able to escape these requirements.

There are three new regulations:

One that requires financial institutions or creditors to develop and implement an Identity Theft Prevention Program in connection with both new and existing accounts. The Program must include reasonable policies and procedures for detecting, preventing, and mitigating identity theft;

Another that requires users of consumer reports to respond to Notices of Address Discrepancies that they receive;

A third that places special requirements on issuers of debit or credit cards to assess the validity of a change of address if they receive notification of a change of address for a consumer’s debit or credit card account and, within a short period of time afterward they receive a request for an additional or replacement card for the same account.

Remember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

experts 450+ experts on 30 subjects ready to help you just now

delivery Starting from 3 hours delivery

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

The Fair and Accurate Credit Transactions Act. (2019, February 11). GradesFixer. Retrieved November 29, 2021, from https://gradesfixer.com/free-essay-examples/the-fair-and-accurate-credit-transactions-act/
“The Fair and Accurate Credit Transactions Act.” GradesFixer, 11 Feb. 2019, gradesfixer.com/free-essay-examples/the-fair-and-accurate-credit-transactions-act/
The Fair and Accurate Credit Transactions Act. [online]. Available at: <https://gradesfixer.com/free-essay-examples/the-fair-and-accurate-credit-transactions-act/> [Accessed 29 Nov. 2021].
The Fair and Accurate Credit Transactions Act [Internet]. GradesFixer. 2019 Feb 11 [cited 2021 Nov 29]. Available from: https://gradesfixer.com/free-essay-examples/the-fair-and-accurate-credit-transactions-act/
copy to clipboard
close

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

    By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.

    close

    Attention! This essay is not unique. You can get a 100% Plagiarism-FREE one in 30 sec

    Receive a 100% plagiarism-free essay on your email just for $4.99
    get unique paper
    *Public papers are open and may contain not unique content
    download public sample
    close

    Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

    close

    Thanks!

    Please check your inbox.

    Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

    thanks-icon Order now
    boy

    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Having trouble finding the perfect essay? We’ve got you covered. Hire a writer
    exit-popup-close

    Haven't found the right essay?

    Get an expert to write you the one you need!

    exit-popup-print

    Professional writers and researchers

    exit-popup-quotes

    Sources and citation are provided

    exit-popup-clock

    3 hour delivery

    exit-popup-persone