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. Identity Theft

    The crime of obtaining the personal or financial information ...
  6. Good Credit

    A qualification of an individual's credit history that indicates ...
Related Articles
  1. Insights

    Pros And Cons Of Credit Monitoring Services

    Identity theft is a complex problem. Learn if credit monitoring services are the solution.
  2. Managing Wealth

    How to Recover From Identity Theft

    Identity theft isn't going away, and fixing it can take time and money. But doing nothing isn't an option. Rather than become a victim, it is time to take action.
  3. Insights

    Identity Theft Protection Services: Worth Having?

    A detailed review of what you get from American's leading identity theft protection agencies. Start here before deciding whether you need this coverage.
  4. Personal Finance

    What To Do If Your Identity Is Stolen

    Having your identity stolen is a nightmare. If you are ever faced with the situation, use these steps to alleviate the problem.
  5. Tech

    Avoid Becoming An Identity Thief's Next Victim

    Use these 7 techniques to keep yourself under the radar and out of the way of identity thieves.
  6. Managing Wealth

    Morgan Stanley's New Identity Theft Protection (MS)

    Morgan Stanley now offers identity theft protection to high net worth clients, pursuant to a poll in which they cited this as a top fear.
  7. Personal Finance

    Best Ways to Get Free Credit Scores in 2016

    You've probably seen spammy ads offering the opportunity to check your credit score for "free." Well, not all credit score services are created equal!
  8. Personal Finance

    Should You Close Your Credit Card?

    Find out the consequences before deciding to end your credit agreement.
  9. Personal Finance

    The Importance Of Your Credit Rating

    A great starting point for learning what a credit score is, how it is calculated and why it is so important.
RELATED FAQS
  1. How accurate are free credit reports?

    Discover if a free credit report is accurate, how to access it through a major credit reporting agency, and what to do if ... Read Answer >>
  2. How do I get my free credit report and score from each credit bureau?

    Learn how to obtain copies of your credit report for free from the three credit bureaus and where you might find your credit ... Read Answer >>
  3. Is it possible to get a free credit report from Equifax?

    Learn how you can receive a free credit report from Equifax, and discover what you need to do so you can view your free annual ... Read Answer >>
  4. Does a free credit report show your credit score?

    Find out how you can obtain your credit score, and find out whether your score is included in your free annual credit reports. Read Answer >>
  5. Can a Best Buy credit card help you build credit?

    Learn about how using a Best Buy credit card responsibly can lead to a higher credit score and lower interest rates on mortgages ... Read Answer >>
  6. Is it possible to have a credit limit that's too high?

    Avoid these pitfalls when working with high credit limits, and learn how to increase your credit score by increasing your ... Read Answer >>
Trading Center