Fair Accurate Credit Transactions Act (FACTA) - Improvements to the Fair Credit Reporting ActThe original fair credit reporting act which was created in 1970, but in recent times it has not been able to provide the proper protection for consumers. This caused congress to revisit the act in 2003 in what was called the Fair Accurate Credit Transactions Act, this new version brought about the much needed change for consumers to have a little more say in what goes on their credit file.
Some of the changes included an improved method of resolution to consumer disputes , a better way to deal with identity theft and fraud, give consumers access to their credit reports on an annual basis for free, and also notify consumers of their right to see their credit scores and the factors used for calculating those scores.(continued below) The improvement in reference to identity theft allows consumers to place a “fraud alert” on their credit files with the bureaus. This makes it harder for identity thieves to open fraudulent accounts, the alert allows for extra security steps before any account is opened or credit is issued.
The Fair Accurate Credit Transaction Act also allows consumers to get a free copy of their credit report from the three main bureaus, Equifax, Transunion and Experian. The three credit bureaus in conjunction with the Federal Trade Commission came up with a website called annualcreditreport.com where a copy of each of the three credit reports can be obtained.
You can also receive your reports by mail or request them by phone. You would need to download and fill out the form available on their website, and mail it to the address provided on the site.
One of the most important changes allows you to dispute an account on your report directly with the information furnisher which is the same as the creditor or company that put the information on your credit report. Before this act, the only way to challenge information was with the credit bureaus but now you can ask for an investigation from the original creditor as well, AFTER you have tried having the account deleted with the credit bureaus.
This is a critical because in most cases the creditor DID NOT properly verify the account to begin with when your initial challenge was placed by you with the credit bureaus.
The account needs to be deleted from your credit report if no such proof is available. It is also important to note that the creditors’ non compliance with these laws are grounds for you to file suit against them. Recent
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