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The Fair and Accurate Credit Transactions Act or "FACT ACT" was signed into law in December 2003 and took effect in Western states on December 1, 2004. The primary provision of the FACT ACT gives all Americans access to one free credit report from all three of the credit reporting agencies each year. Prior to the FACT ACT, Americans had to pay for such a service.
Identity theft, its reduction and its victims’ protection are a major focal point of the FACT ACT in several ways. First, having access to free annual credit reports might encourage people to check their reports more frequently (and catch identity theft sooner). Second, all merchants are required to phase out usage of pos terminals which print out full account numbers on receipts by December 4, 2006. Third, the FACT ACT allows identity-theft victims to block fraudulent information from appearing on their credit reports and requires debt collectors to report any fraudulent credit report information they find to the creditor. Identity-theft victims will also be able to obtain copies of fraudulent transactions from businesses. Finally, once a credit bureau receives a fraud alert, it must ensure that the thief will not be granted future credit.
In addition to identity theft prevention and management, the FACT ACT establishes several other safeguards aimed at protecting individual credit users. First, national standards on what credit agencies can include in consumer credit reports have moved from recommendations to law. Second, consumers will now have the right to block solicitations from affiliates of companies they do business with. Finally, financial institutions must disclose to consumers if they report any negative information about them to a credit bureau or if they have granted them less favorable terms than to other consumers.
The provisions of the new FACT ACT are already in effect in the Western states, but should be in effect across the country by the end of 2005. Midwestern states become eligible on March 1, 2005 followed by Southern states on June 1, 2005. Finally, Eastern states become eligible on September 1, 2005.
Once the FACT Act has been placed into effect in your state, requesting a credit report is now simpler than before. TransUnion, Experian and Equifax have joined forces to offer a simple and quick way to order a free credit report via internet, phone or mail:
| Internet address: |
www.annualcreditreport.com |
| Toll-free number: |
877.322.8228 |
| Mailing address: |
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281 |
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News Article Contact -
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Jim Nazario
Director, Marketing Operations
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