Consumers enjoy many protections under 1970s Fair Credit Reporting Act. Revisions to the original act include the Fair and Accurate Credit Transactions Act, signed into law by President George W. Bush on Dec. 4, 2003. The FACT Act remains the most comprehensive overhaul of FCRA to date. Its chief provisions aimed to prevent identity theft, increase avenues available to consumers to resolve disputes, improve consumer access to their own credit information and allowed unrestricted access to a consumer's record in the name of counterterrorism.
Identity Theft
The FACT Act's provisions relating to identity theft make it simpler for you to deal with suspected fraud when it happens. If you report a suspicious incident to one major consumer reporting agency, such as TransUnion, Equifax or Experian, that agency must circulate the claim to the other two consumer reporting agencies. This FCRA update also mandates the exclusion of your name from lists provided to third parties by the consumer-reporting agencies for five years, should you report an identity theft or fraud incident. Additionally, if you apply for any new credit, request a credit extension or an increase in your credit limit, ask for additional credit cards for an existing account and a fraud or identity theft alert appears on your credit report, the creditor must take the necessary steps to ascertain your true identity.
Dispute Resolution
Before the FACT Act, you could not dispute incorrect information directly with the creditor. With the FACT Act, you may contact the creditor directly. The creditor must investigate and report the findings to you within 45 days. This rule does not apply to disputes initiated by a credit repair company on your behalf. If the creditor tags your dispute as frivolous, he must notify you within five days and tell you why he thinks the inquiry qualifies as frivolous, and advise you how to correct the query to restart the investigation. Another portion of this section directs creditors to notify you when they submit negative information about you to one of the three major consumer reporting agencies.
Free Credit Report
On Dec. 1, 2004, the FACT Act section covering free credit reports went into effect. All consumers have the right to receive one free credit report every 12 months from all three national consumer reporting agencies. The agencies must also release your credit score to you for a reasonable fee. If you apply for a mortgage, the lender must provide you with written notification of your credit score at no cost.
Patriot Act
Provisions of 2001's Patriot Act exist in the FACT Act. The original FCRA allowed unreported FBI access to your credit report. The FACT Act extends that access to any government agency accessing your report for counterterrorism objectives. As with FBI queries, consumers receive no notification, nor are notes made on your credit report with regard to a government agency's accessing of your file.
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