Understanding government laws and acts can be very difficult for trained professionals, much less a person who has never studied law or government policies. The Fair and Accurate Transactions Act was installed to protect you, the consumer. This guide will help you understand this act just a little better and will leave out all the jargon that is really not that important. The links within this article will take you to another website that will explain that particular item more in depth. If you feel you are the victim of fraud, identity theft or credit manipulation, there will be links at the end to explain where and who to report to.
See also the writeup on Wikipedia about The Fair and Accurate Transactions Act.
From the beginning of the act, these are the basics:
#1. Any consumer reporting agency who maintains credit scores and has a file on you is required, if contacted by you or your representative that fraud has been committed or may be committed against you, must put that in your file and report it to all the other agencies. They must also be willing to provide you with a free credit report. This section also requires these agencies to put in their files if a person is active military. If these alerts are on the credit report, agencies who give credit must use better measures to make sure the consumer is who they say they are. If there is an alert on your report, loans over the phone or computer will be very unlikely and if an organization does so, they can be liable.
#2. Any business or organization that accepts credit cards can only have either the expiration date, or the last five numbers of the card on receipts. Their records can only save these numbers and not your whole credit card number. This protects you from employees of that company from using your number for their own gain. This is also the case with social security numbers too.
#3. If a financial institution has red flags that your identity has possibly been stolen, and you move and change your address, they have to use higher standards in sending you out a new credit or debit card. This may mean you going to your financial institution and showing proof of identity and a signature. Yes, this is a pain, but for your protection.
#4. Any business that gives you credit must be willing to give you free of charge, all records of credit transactions if you have reasonable beliefs that your identity has been stolen. They should and will check your proof of identity, but they are required by the act to give you the reports.
#5. If a credit reporting agency has been alerted to a fraud on your account, they must block that report from being seen by others until it is cleared. Verification companies and law enforcement agencies do have access to these blocks.
#6. A company can not sell or trade a debt that has been reported as fraud. They also cannot put it up for collection. This rule is probably one of the largest that is broken by companies.
#7. All credit reporting agencies have to offer a free credit report once a year for any consumer requesting one. This will allow you to check your report for discrepancies. It is wise to use this part of the act. They must also tell you your credit score if you request it.
#8. You have the right to opt out of any credit pre screening that may be done by credit agencies. These agencies must provide a toll free number to do so.
#9. All institutions that maintain files with credit numbers on you must properly dispose of those records. This includes shredding and disposal at a proper location. This has been a rule that has been broken quite often too.
This act was designed to protect all of us. Yes, you may feel that it is more difficult to handle some personal financial matters, but it is for your protection. Do you think you have been the victim of fraud, identity theft or credit manipulation? Contact the F.B.I. Don't let the bad guys win!
See also the writeup on Wikipedia about The Fair and Accurate Transactions Act.
From the beginning of the act, these are the basics:
#1. Any consumer reporting agency who maintains credit scores and has a file on you is required, if contacted by you or your representative that fraud has been committed or may be committed against you, must put that in your file and report it to all the other agencies. They must also be willing to provide you with a free credit report. This section also requires these agencies to put in their files if a person is active military. If these alerts are on the credit report, agencies who give credit must use better measures to make sure the consumer is who they say they are. If there is an alert on your report, loans over the phone or computer will be very unlikely and if an organization does so, they can be liable.
#2. Any business or organization that accepts credit cards can only have either the expiration date, or the last five numbers of the card on receipts. Their records can only save these numbers and not your whole credit card number. This protects you from employees of that company from using your number for their own gain. This is also the case with social security numbers too.
#3. If a financial institution has red flags that your identity has possibly been stolen, and you move and change your address, they have to use higher standards in sending you out a new credit or debit card. This may mean you going to your financial institution and showing proof of identity and a signature. Yes, this is a pain, but for your protection.
#4. Any business that gives you credit must be willing to give you free of charge, all records of credit transactions if you have reasonable beliefs that your identity has been stolen. They should and will check your proof of identity, but they are required by the act to give you the reports.
#5. If a credit reporting agency has been alerted to a fraud on your account, they must block that report from being seen by others until it is cleared. Verification companies and law enforcement agencies do have access to these blocks.
#6. A company can not sell or trade a debt that has been reported as fraud. They also cannot put it up for collection. This rule is probably one of the largest that is broken by companies.
#7. All credit reporting agencies have to offer a free credit report once a year for any consumer requesting one. This will allow you to check your report for discrepancies. It is wise to use this part of the act. They must also tell you your credit score if you request it.
#8. You have the right to opt out of any credit pre screening that may be done by credit agencies. These agencies must provide a toll free number to do so.
#9. All institutions that maintain files with credit numbers on you must properly dispose of those records. This includes shredding and disposal at a proper location. This has been a rule that has been broken quite often too.
This act was designed to protect all of us. Yes, you may feel that it is more difficult to handle some personal financial matters, but it is for your protection. Do you think you have been the victim of fraud, identity theft or credit manipulation? Contact the F.B.I. Don't let the bad guys win!
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