What is the FACTA?

According to investopedia.com, the FACTA is a “federal law that enhances consumer protections, especially against identity theft. It is the amended law to the Federal Credit Reporting Act, aka FCRA.


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How the FAIR and Accurate Credit Transaction Act protects you


1. You must receive alerts when negative actions are reported on your credit report.

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If you are denied employment, insurance, or credit after applying, they must explain why you were denied and where you can access your free report.


2. You are entitled to one free copy of your credit reports annually.

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To get your free credit report, visit www.annualcreditreport.com. This is the only official site; others may scam you into paying before you can gain access.

You are entitled to extra copies of your credit reports if you are a victim of identity theft, on public assistance, or unemployed (less than 60 days). Note: The Federal Trade Commission allows free weekly access to your reports until Dec 31, 2023.


3. You are entitled to have access to your credit score

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Websites such as Credit Karma offers free access to your score. Additionally, most banks give free access. You may also access it through the credit bureaus, but it may have a fee.


4. You can dispute inaccurate, outdated, or incomplete information from your credit reports.

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If you discover something on your credit report that shouldn’t be there and report it to the credit bureau, they have 30 days to investigate. Within 30 days, they must notify you if the dispute will remain, be removed, or be updated.


5. You can control who has access to your credit file.

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If you are tired of getting “junk mail” or pre-approved mail coming to your mailbox every week, you can stop it. Visit www.optoutprescreen.com 


6. You can sue for damages.

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If your lender or credit bureau violates the rules of FACTA, they may incur warnings and penalties and possibly even be sued.


7. Active Military Have Extra Protections

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Lastly, you may appoint someone to represent your account if you are on active duty. You may also place an alert on your account for creditors to take extra precautions to verify your identity if access is needed.

Another credit law you need to know is the CARD Act.


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