FACTA

Question 1

254. The Fair and Accurate Credit Transaction Act (FACT Act) became law in 2003 and is an extension of

Answer 1

the 1970 Fair Credit Reporting Act (FCRA REG V)
(FCRA deals with CREDIT REPORTS, It’s in the name)

Question 2

255. The Fair and Accurate Credit Transaction Act (FACT Act) became law in 2003 and is an extension of the 1970 Fair Credit Reporting Act.

Question 3

256. The FACT ACT is primarily concerned with -

Answer 3

identity theft.

Question 4

257. The FACT ACT requires that the -

Answer 4

National Credit Score 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.)

Question 5

258. FACTA requires that when a consumer applies for a home loan, he or she must receive the -

Answer 5

Home Loan Application Credit Score Information Disclosure

(which explains their rights under this law.)

Question 6

259. The FTC Red Flags Rule (Section 114) requires financial institutions and creditors to develop and implement -

Answer 6

written identity theft prevention programs.

Question 7

260.Under the Red Flags Rule, financial institutions and creditors must develop a -

Answer 7

written program that identifies and detects the relevant warning signs — or “red flags” — of identity theft.

Question 8

261. The Red Flags program must also describe appropriate responses that would -

Answer 8

prevent and mitigate the crime and detail a plan to update the program.

Question 9

262. The Red Flags program must be managed by -

Answer 9

the Board of Directors or senior employees of the financial institution or creditor and include appropriate staff training and oversight of any service providers.

Question 10

263. The Red Flag rules require credit card issuers to verify the validity of -

Answer 10

any change of address received, prior to sending out new credit cards and/or statements to the new address.

Question 11

264. The FACT Act prohibits businesses from printing more than five digits of any customer’s -

Answer 11

credit/debit card number or expiration date on any receipt. The information must be shortened.

Question 12

265. The FACT Act allows a consumer to place a

Answer 12

fraud alert or freeze his/her credit report.

Question 13

266. The FACT Act requires businesses to dispose of (burn or shred) papers that contain -

Answer 13

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.)

Question 14

267. Loan Originators must secure (lock up) all -

Answer 14

pending loan documents at the end of the workday.

Question 15

268. The FACT Act and the FTC allow a consumer to receive a free copy of his/her

Answer 15

credit REPORT (NOT CREDIT SCORE) once a year by visiting annualcreditreport.com.

Question 16

269. 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

Answer 16

$5,000 or imprisonment for 1 year, or both.

(FOR OPTAINING A CREDIT REPORT WITHOUT PRIOR APPROVAL OR SHARING THE REPORT)