| The FACT Act,
sometimes called FACTA, stands for the Fair and Accurate Credit
Transactions Act. Passed on January 1, 2004, the FACT Act made
some important changes to the Fair Credit Reporting Act (FCRA).The
amendments were designed to make improvements in three major
areas:
1. Access. The laws under the FACT Act are designed to help
consumers get easier access to their credit files with the
national credit bureaus.
2. Protection. Many of the new provisions are geared toward
providing more comprehensive protection against identity theft
and fraud.
3. Accuracy. Because the quality of a consumer’s credit
can largely affect their ability to purchase a home or car,
or to get other types of financing, the Act also aims at improving
the accuracy of credit report information.
As is often the case with new legislation, there are still
many unanswered questions about how businesses in unique industries
will be affected. The Federal Trade Commission and other governing
agencies are still in the process of figuring out when and
how to enforce the new laws. So, while the feds and politicians
iron out the nitty-gritty details, now’s a good time
to wrap your head around the basics — especially the
ones that might directly impact your business.
Read on about FACT Act implications...
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