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FACT Act Implications
Certainly, the most talked-about element
of the FACT Act is that it entitles every consumer
to one free credit report per year - more than one
if he or she has been a victim of fraud. Keep in mind
that the free-report rule will not fully kick in until
after 2004.
Mortgage lenders are also now required
to furnish a statement to home loan applicants disclosing
their credit score, as well as:
- Key factors adversely affecting
the score
- The score range
- The date on which the score was
created
- The name of the entity that developed
the score
Learn how Credit
Plus can help you comply
Once all the changes under the FACT
Act are in place, you may begin to notice special
alerts on credit reports. Consumers will be allowed
to place these alerts on their files to help prevent
ID thieves from opening new accounts using their identity.
For example, military personnel can request an alert
on their credit files to prevent fraudsters from using
their identity if they are called away for active
duty. In their absence, if anyone tries to obtain
credit in their name, a special message will appear
on the credit report, alerting the report reviewer
to the suspicious activity.
Consumers will also have to be notified
if the number of credit inquiries on their file negatively
affected their credit score. Many credit reports contain
a summary key in the bureau score section where you
can quickly see which factors impacted the consumer?s
score.
Additionally, to help prevent identity
theft before it occurs, businesses may no longer print
more than the last five digits of an account number
on a credit card receipt. That way, if a bad guy happens
to get his hands on the receipt, he won?t have a complete
number at his disposal. Those who do fall victim to
identity theft will be able to block from their files
any derogatory information that resulted directly
from the crime.
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