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Fair and Accurate Credit Transactions Act
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| Financial regulation in the United States | |
| Dodd-Frank Act | |
| Federal Reserve | |
| Financial regulation by state | |
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| Commercial bank • Credit union • Depository institution • Financial system • Investment banking • Securities | |
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The Fair and Accurate Credit Transactions Act, also known as the FACT Act or FACTA, was signed into law by President George W. Bush (R) in December 2003. FACTA amended the Fair Credit Reporting Act to require the three nationwide credit rating agencies (Equifax, Experian, and TransUnion) to provide consumers with a free credit report once annually upon request. FACTA also included provisions for identity theft prevention.[1]
Legislative history
Following a Federal Trade Commission report detailing an increased number of identify theft incidents, Representative Spencer Bachus (R) introduced the Fair and Accurate Credit Transactions Act (FACTA) into the United States House of Representatives on June 23, 2003. The bill passed the House by a vote of 392-30 on September 10, 2003. The United States Senate passed a different version of the bill by a vote of 95-2 on November 10, 2003. The bill then went to a joint conference committee to reconcile discrepancies. The committee returned an amended version of the bill to Congress on November 21, 2003. This amended version passed the House on the same day by a vote of 379-49. The Senate passed the bill one day later with unanimous consent. President George W. Bush (R) signed the bill into law on December 4, 2003.[2]
Components
As an amendment to the Fair Credit Reporting Act (FCRA), FACTA expanded federal requirements for credit reporting. While FCRA regulated the collection, dissemination, and use of consumer information by credit agencies, FACTA required the three nationwide credit agencies (Equifax, Experian, and TransUnion) to offer consumers one free credit report per year upon the consumer's request.[1]
FACTA also included provisions, such as the Red Flag Rule, intended to reduce identity theft. This rule required federal banking agencies (e.g., the Federal Trade Commission) to create regulations regarding identity theft. This rule also required financial institutions to develop plans to prevent identity theft. As part of these plans, institutions were required to monitor updates to customer information (e.g., frequent address changes that might signal identity theft), assess the validity of these changes, and notify customers. The act also mandated that business not print more than five digits of a credit or debit card number or the card expiration date on a receipt.[1]
See also
Footnotes
