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Changes To The Fair Credit
Reporting Act (FACTA)
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.
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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. |
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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. |
