FACT Act Overview:

The Fair and Accurate Credit Transactions Act (or Fact Act) of 2003, ensures that all citizens are treated fairly when they apply for a mortgage or other form of credit.

The legislation provides consumers, companies, consumer reporting agencies, and regulators with new tools that expand access to credit and other financial services for all citizens.

Overview:

• It helps to ensure that all Americans, of every income level and background, are able to build good credit and confront the problem of Identify Theft by requiring merchants to leave all but the last five digits of a credit card number off store receipts.

• Ensures that lenders make decisions on loans based on full and fair credit histories, and not on discriminatory stereotypes.

• Gives every consumer the right to their credit report free of charge every year. Consumers will be able to review a free report every year for unauthorized activity, including activity that might be the result of identity theft.

• Creates a national system of fraud detection to make identity thieves more likely to be caught. Previously, victims would have to make phone calls to all of their credit card companies and three major credit rating agencies to alert them to the crime. Now consumers will only need to make one call to receive advice, set off a nationwide fraud alert, and protect their credit standing.

• Establishes a nationwide system of fraud alerts for consumers to place on their credit files. Credit reporting agencies that receive such alerts from customers will now be obliged to follow procedures to ensure that any future requests are by the true consumer, not an identity thief posing as the consumer.

The FACT Act requires Credit Bureaus to notify consumers within five days of a previously disputed item that was unverified and removed to not show up again if a creditor updates their record with the credit bureaus.

The Fair Credit Reporting Act (or FCRA) gives you the right to dispute anything that you believe is not accurate or verifiable in your Credit Report.

It also requires that any listing that is found to be inaccurate, unverifiable or obsolete to be removed from your credit report.

The Credit Bureaus cannot send you a letter stating that your report is accurate, the must prove it. You have a right to appeal their findings.  In America everyone is entitled to a defense. In a court of law a prosecutor can’t charge you with a crime and refuse to prove their case. Neither can the Credit Bureaus.

Credit Bureaus must back up the information that they are reporting about you, Congress and the Law agrees. If the Credit Bureaus are unable or unwilling to prove the validity of certain item, you can request deletion. If they refuse to respond to your requests, you can hire an attorney to write a letter to enforce the law on your behalf – it’s your right!