FACT Act

Question 1

FACT Act stands for ______.

Answer 1

Fair and Accurate Credit Transaction Act

Question 2

The FACT Act is an extension of the _______.

Answer 2

Fair Credit Reporting Act

Question 3

The FACT Act is primarily concerned with ________.

Answer 3

Identity Theft

Question 4

The FTC Red Flags rule requires financial institutions and creditors to develop and implement written ______________ prevention programs.

Answer 4

identity theft

Question 5

Red Flag rules require credit card issuers to verify the validity of change of ____________ received prior to sending out new credit cards and/or statements to the new address.

Answer 5

address

Question 6

The FACT Act and the FTC allow a consumer to receive a free copy of his/her credit report once a year by visiting ________.

Answer 6

annualcreditreport.com

Question 7

The FACT Act prohibits businesses from printing more than __ digits of any customer’s credit/debit card or _________ on any receipt.

Answer 7

5 digits / expiration date

Question 8

The FACT Act allows consumers to place a ______ alert or ______ his/her credit report

Answer 8

Fraud / freeze

Question 9

The FACT Act requires businesses to _____ or _____ papers that contain consumer report information, when that information is no longer needed. Businesses must _______ or ______ electronic files or media so that information cannot be recovered.

Answer 9

Burn or shred papers / destroy or erase

Question 10

Loan originators must ______ and _______ all pending loan documents at the end of the workday.

Answer 10

Secure and lock up

Question 11

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 ______ or imprisonment for ___ year, or both.

Answer 11

$5,000 / 1 year

Question 12

The Red Flag Rules can be found in Section ____ of the ______________.

Answer 12

Section 114 of the Fair and Accurate Credit Transaction Act (FACT Act)

Question 13

The FACT ACT requires that the ___________ Disclosure is given to all home loan applicants when approved for a mortgage. This document will give the credit score used in making the decision to approve the loan.

Answer 13

National Credit Score Disclosure

Question 14

The FACTA requires that when a consumer applies for a home loan, he or she must receive the ________________ Disclosure, which explains their rights under this law.

Answer 14

Home Loan Application Credit Score Information Disclosure