Fair And Accurate Credit Transactions Act - FACTA

AAA

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.

INVESTOPEDIA EXPLAINS '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. Fair Credit Reporting Act - FCRA

    The act that regulates the collection of credit information and ...
  2. Fair Debt Collection Practices ...

    A Federal law that limits the behavior and actions of debt collectors ...
  3. Identity Fraud Reimbursement Program

    A financial product that offers reimbursment for the costs associated ...
  4. Credit Card Accountability, Responsibility ...

    This act was designed to limit the manner in which credit card ...
  5. Error Resolution

    A procedure that allows consumers to dispute bookkeeping errors ...
  6. Personal Property

    A type of property which, in its most general definition, can ...
Related Articles
  1. Insurance

    Identity Theft: How To Avoid It

  2. Credit & Loans

    How To Dispute Errors On Your Credit ...

  3. Credit & Loans

    Identity Theft: Who To Call For Help

  4. Personal Finance

    Tips For Keeping Your Financial Data ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center