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Ch 17-3 - The FACT Act also gives consumers who have been...

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Dessya Palit Bus Law CH 17-3 The Fair and Accurate Credit Transactions Act (FACT) of 2003 was established as a national fraud alert system so that consumers who suspect that they may be victimized by identity theft can place an alert in their credit files. The FACT Act also require the major credit reporting agencies to provide consumers with a free copy of their credit reports every 12 months. Another provision requires the major account numbers on credit-card number to be shortened so that merchants, employers, and others who have access to the receipts cannot obtain a consumers name and full credit-card numbers. The act also mandates that financial institution work with the Federal Trade Commission to identify “red flag” indicators of identity theft and develop riles on how to dispose of sensitive credit information.
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Unformatted text preview: The FACT Act also gives consumers who have been victimized by identity theft some assistance in rebuilding their credit reputations. For example, credit reporting agencies must stop reporting allegedly fraudulent account information once the consumer establishes that identity theft has occurs. Business owners and creditors are required to provide a consumer with copies of any records that can help the consumer prove that a particular account or transaction is fraudulent. In addition, to help prevent the spread of erroneous credit information, the act allows consumers to report the accounts affected by identity theft directly to the creditors....
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