Automated Credit Score Disclosure Simplifies Compliance
Are you compliant with FACT Act regulations? If your company handles credit reports during the course of its day-to-day business, you need to know the answer to this question.
The Fair and Accurate Credit Transactions Act (FACT Act or FACTA) passed on January 1, 2004, made several important changes to the Fair Credit Reporting Act. The amendments were designed to make improvements in the following areas:
Access – The laws under the FACT Act are designed to help consumers get easier access to their credit files with the national credit bureaus.
Protection – Many of the new provisions are geared toward providing more comprehensive protection against identity theft and fraud.
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 FACT Act aims at improving the accuracy of credit report information.
The most talked about element of the FACT Act is that it entitles every consumer to one free credit report per year – or more than one if he or she has been a victim of fraud.
Consumers are also allowed to place special alerts on their credit files to help prevent thieves from opening new accounts using their identity. For example, military personnel can request an alert on their credit files to prevent someone from using their identity if they are called away for active duty.
Consumers must also be notified if the number of credit inquiries on their file negatively affects their credit score. Many credit reports contain a summary key in the bureau score section where you can quickly see which factors impacted the consumer’s score.
Additionally, to help prevent identity theft before it occurs, businesses may no longer print more than the last five digits of an account number on a credit card receipt. That way, a potential thief won’t have a complete number at his or her disposal. Consumers who do fall victim to identity theft will be able to block from their files any derogatory information that resulted directly from the crime.
The FACT Act requires mortgage lenders to furnish a statement to home loan applicants disclosing their credit score as well as the following information:
Key factors adversely affecting the score.
The score range.
The date on which the score was created.
The name of the entity that developed the score.
FACT Act compliance service from Credit Plus automatically delivers these documents to you or the consumer with every credit report you order. This automated credit score disclosure simplifies the FACT Act compliance process. The credit score disclosure report dynamically generates the consumer’s unique scoring information using the most up-to-date credit data available, and includes specific language as required by the FACT Act.
Your borrowers may obtain access to their free credit reports by clicking here.
Our direct connection to the national credit bureaus assures you that this FACT Act compliance service meets the accuracy requirements mandated by the FACT Act.
Click here to request a product demo or pricing information on FACT Act compliance service from your Regional Account Executive.