DEFINITION of 'Fair And Accurate Credit Transactions Act - FACTA'

A U.S. resolution passed in 2003 that is aimed at enhancing protection measures for identity theft by creating standards for the handling of credit card numbers. This act allows individuals free access to their own credit reports and has created a nationwide alerts system.

This act is an amendment to the existing Fair Credit Reporting Act.

BREAKING DOWN 'Fair And Accurate Credit Transactions Act - FACTA'

With the passing of FACTA, people are now allowed to request their credit reports free, once per year, from all three of the major credit reporting agencies (Equifax, Experion and Transunion).

Not only were requirements placed on mortgage lenders to release consumer information regarding credit scores and factors influencing the price of a mortgage loan, but standards also were put into place that require lenders and regulators to be more proactive in spotting identity theft before it occurs by looking for suspicious patterns.

RELATED TERMS
  1. Credit Report

    A detailed report of an individual's credit history prepared ...
  2. Credit Watch

    A variety of special programs offered by credit rating agencies ...
  3. Credit Fraud Alert

    A notice to a credit reporting bureau that a consumer’s identity ...
  4. Credit Limit

    The amount of credit that a financial institution extends to ...
  5. Credit Rating

    An assessment of the creditworthiness of a borrower in general ...
  6. Identity Theft

    The crime of obtaining the personal or financial information ...
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