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Changes To
The Fair Credit Reporting Act
FACTA: Fair
And Accurate Credit Transactions Act
Some positive changes
were made to the Fair Credit Reporting Act.
These amendments are referred to as the Fair and Accurate
Credit Transactions Act (FACTA). FACTA was implemented to help
stem the tide of identity theft and to help reduce the
losses of identity theft victims.
There is a National
Fraud Alert System that allows identity theft victims to place
an alert on their credit files and prevent the credit
reporting agencies from releasing information on their credit
history. Identity theft victims who place a fraud alert in
their credit report are entitled to a free credit report.
There are also Active Duty Alerts for people in the Armed
Forces to let the credit reporting agencies and creditors know
where they are. For military personnel stationed overseas,
this can prevent credit transactions from taking place in
their hometown while they are away. Fraud alerts and active
duty alerts prevent new credit accounts from being opened.
They also prevent the ordering of additional cards on existing
credit card accounts.
Another change is that
consumers are entitled to a free annual credit report. The
reasoning is that if consumers can monitor their credit
reports regularly, they are more likely to detect identity
theft. To order your free report go to AnnualCreditReport.com.
With regard to closed
accounts, the credit reporting agencies are required to note
whether it was closed by the consumer or by the
creditor.
If you have a credit
report dispute, you can take it up with the company that
reported it. You are no longer required to dispute only with
the credit reporting agency. |
