FACT ACT Flashcards
What does FACT Act stand for?
Fair and Accurate Credit Transaction Act and it became law in 2003. It is an extension of the 1970 Fair Credit Reporting Act
What is the FACT ACT primarily concerned with?
identity theft
What does the National Credit Score Disclosure give and when does the FACT ACT require this is given?
It provides the credit score used in making a decision to approve a loan and it is required to be given to all home loan applicants when approved for a mortgage.
When a consumer applies for a home loan, he/she must receive what disclosure that explains their rights under this law?
Home Loan Application Credit Score Information Disclosure
What is the FTC Red Flag Rule (Section 114)?
It requires financial institutions and creditors to develop and implement written identity theft programs which identifies and detects the relevant warning signs or “red flags” of identity theft.
The Red Flags program must also describe______________ that would prevent and mitigate the crime and detail a plan to update the program.
appropriate responses
The Red Flag program must be managed by who of the financial institution or creditor and what must they include?
The Board of Directors or senior employees and they must include staff training and oversight of any service providers
What does the Red Flag rule require of credit card issuers before sending new credit cards and/or statements to a new address?
The Red Flag rules require credit card issuers to verify the validity of any change of address received, prior to sending out new credit cards and/or statements to the new address
How many digits can a business print of any customers credit card on a receipt under the FACT Act?
The FACT Act prohibits businesses from printing more than five digits of any customer’s credit/debit card number or expiration date on any receipt. The information must be truncated.
The FACT Act allows a consumer to place a ___ alert or _____ his/her credit report.
fraud , freeze
Under the FACT ACT when must a business dispose of (burn or shred) papers or erase electronic files?
The FACT Act requires businesses to dispose of (burn or shred) papers that contain consumer report information, when that information is no longer needed. Businesses must destroy or erase electronic files or media so that information cannot be recovered.
Loan Originators must _____________ all pending loan documents at the end of the workday.
secure (lock up)
The FACT Act and the FTC allow a consumer to receive a free copy of his/her credit
report once a year by visiting _____________.
annualcreditreport.com.
Any person who obtains a credit report without prior authorization, or a credit
reporting agency employee who gives a credit report to an unauthorized person,
maybe be fined up to _________________________.
$5,000 or imprisonment for 1 year, or both.
