In an effort to help reduce identity theft and protect consumers, Congress passed the Fair and Accurate Credit Transactions Act (FACTA) in 2004.

Provisions of FACTA

According to the Federal Trade Commission, the most important provisions of FACTA include the following:

  • A requirement for the three major credit reporting bureaus to provide consumers with one free credit report a year. This will allow consumers to make sure that bank accounts and credit cards have not been fraudulently opened under their name.
  • The creation of a National Fraud Alert System, which allows consumers to alert their creditors of potential fraud. This notifies creditors that they need to proceed with caution when extending credit.
  • A requirement that credit card numbers be shortened on all receipts given by retailers, restaurants, etc.
  • A requirement that the credit reporting agencies stop reporting adverse credit information once a consumer establishes that he or she was the victim of identity theft.
  • A requirement that businesses produce records of fraudulent transactions so that consumers can prove they are victims of identity theft.
  • A provision that allows consumers to report identity theft directly to creditors, and not just credit reporting agencies.

Do I Need a Lawyer?

Dealing with your debt can be confusing and frustrating. A bankcruptcy attorney can help you sort through your financial problems, and offer solutions, including negotiating with your creditors and possibly filing for bankruptcy.