FACT Act Flashcards
The Fair and Accurate Credit Transaction Act (FACT Act) became law in 2003
and is an extension of the _________________________.
Fair Credit Reporting Act
The FACT ACT is primarily concerned with ____________.
identity theft
The FACT ACT requires that the _____________________ 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.
National Credit Score Disclosure
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.
Home Loan Application Credit Score Information
The FTC _______________ requires financial institutions and creditors to develop and implement written identity theft prevention programs.
Red Flags Rule
Red Flags Rules are also known as ______________ Rules
Section 114
Under the Red Flags Rule, financial institutions and creditors must develop a _____________ that identifies and detects the relevant warning signs — or “red flags” — of identity theft.
written program
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 Flags program must be managed by the _____________ or _____________ of the financial institution or creditor and include appropriate staff training and oversight of any service providers.
Board of Directors / senior employees
The Red Flag rules require credit card issuers to verify the validity of any ____________ received, prior to sending out new credit cards and/or statements to the new address.
change of address
The FACT Act prohibits businesses from printing more than ___ digits of any customer’s credit/debit card number or ____________ on any receipt. The information must be truncated.
5 digits / expiration date
The FACT Act allows a consumer to place a _________ or ________ his/her credit report.
fraud alert / freeze
The FACT Act requires businesses to dispose of (_____ or ______) papers that contain consumer report information, when that information is no longer needed. Businesses must destroy or ______ electronic files or media so that information cannot be recovered.
burn / shred / erase
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
