New FACTA Rules Take Effect on July 1, 2010
June 02, 2010
Companies have just a couple more weeks to comply with new guidelines and rules under the FACTA (Fair and Accurate Credit Transactions Act, which many of you already know amended the FCRA (Fair Credit Reporting Act), which the Federal Trade Commission adopted approximately a year ago describing in more detail data provided to credit repositories.
Many know FACTA as the law that gives consumers the right to request a credit report, for free each year, from the three major credit bureaus. (This is a question on the NACSO Certification Exam...). What many may not know is this law also contains provisions to help decrease the number of identity theft incidents.
The new FACTA rules, that take effect in just a handful of weeks, are designed to increase integrity and accuracy of all data that furnishers send to the credit repositories. These same rule require said furnishers to develop written policies and logistical procedures, which are deemed "reasonable" that help implement these policies. Per section 16 C.F.R 660.3(a), these written policies and logistical procedures can vary depending on different variables such as the size, scope, nature and even the complexity of each data furnisher's activities.
What is more important to individuals in our industry, is
that these same rules have also provided regular consumers with extra ways to
dispute inaccuracies on their credit reporting files. For those of you that want
to read in the "in depth" details of this new act, you can find it all on the
following link:
http://www.ftc.gov/os/2009/07/R611017factafrn.pdf
