FACTA is often a misspelling of FATCA.
FACTA is the Fair and Accurate Credit Transactions and is an amendment to the Fair Credit Reporting Act (FCRA), which was added in 2003 to safeguard consumers from the growing dangers of identity theft. FACTA sets the guidelines for the manner in which consumer information can he shared and it sets the parameters for use, accuracy and privacy of this information. The amendment to the FCRA entitled consumers to free copies of his or her credit report once a year from each of the three major credit reporting agencies, Trans Union, Equifax, and Experian and sought to reduce the risk of identity theft by allowing people to place fraud alerts and deployment notifications on his or her credit reports, which makes fraudulent applications more difficult to cultivate.
To better protect consumers who are victims of identify theft, FACTA instituted a fraud alert notation with the credit reporting agencies (CRAs). If someone has been a victim of identity theft or believe they are a victim and their information may have been compromised, he or she are entitled to contact the credit reporting agencies and place alerts on his or her report. They will need to notify one CRA, for in response, the one CRA must notify the other CRAs of the alert. The CRAs must then include a statement on his or her report that you are the victim of identity theft and provide a number at which a credit grantor may contact you if any applications for credit are made in your name.
The alert will last 90 days unless you request an extension, which will last seven years. Similar to the fraud alert, FACTA will allow consumers on active duty in the military to list on his or her report. The purpose of the active duty notation is to protect the people on deployment while is or her credit remains idle.
Another step to take when protecting yourself from identity theft under FACTA is by prohibiting merchants from printing more than five digits of your bank cards or dated of expiration on consumer receipts. Failure to comply with this is punishable with statutory damages ranging from $100 up to $1000 in individual actions and in a class action will grow exponentially.
In summary, to protect consumers FACTA requires the three main credit reporting agencies, Trans Union, Experian, and Equifax, to provide credit reports free of charge annually; allows consumers to place fraud alerts on their credit reports if he or she are believed to have been a victim of identity theft; and third, FACTA requires merchants to truncate a person’s credit or bank card numbers and card expiration date on receipts.