This amendment to the Fair Credit Reporting Act (FCRA) adds provisions to improve the accuracy of consumers` credit reports. It gives consumers the right to one free credit report per year from credit reporting agencies, and consumers can also purchase a credit score as well as information on how the credit score is calculated for a reasonable fee. The law also requires the provision of „risk-based“ prices and credit ratings to consumers in the event of rejection or less favorable loan offers. The Act also adds provisions to prevent and mitigate identity theft, including a section allowing consumers to place fraud alerts on their credit reports, as well as other improvements to the Fair Credit Reporting Act. Certain provisions on data security („red flags“ for possible identity theft) were amended by the Red Flag Program Clarification Act of 2010. Pub. L. 111-319, 124 Stat. 3457, to clarify and limit the meaning of the term „creditor“ for the purposes of these provisions. With the Dodd-Frank Act, most of the regulations and an ongoing review obligation under the Act were transferred to the Consumer Financial Protection Bureau, but the Commission retains responsibility for two data security regulations („red flags“ and „elimination“), as well as all regulations made under the Act with respect to certain motor vehicle dealers. Please note that Business Information Group, Inc. only creates background check reports at the request of our client, who must obtain approval. Therefore, unless you have previously authorized a potential employer to receive a background check report from you, Business Information Group, Inc.
does not have a record of which you are subject. Unless you have applied to an employer that produces background reports prior to hiring, you do not have a file with Business Information Group, Inc. Typically, a consumer is informed of the name and identity of the background company used by an employer on the consent and disclosure forms that an applicant must sign before requesting a background report. This section requires all consumer helplines to develop a means of communicating consumer complaints about fraud or identity theft, or requests for fraud warnings or suspensions, with each other. In addition, the section requires each consumer reporting agency to publish an annual report to the Federal Trade Commission on fraud alert requests and complaints of fraud or identity theft received by the reporting agency. Finally, the article calls on the Federal Trade Commission to establish a means by which consumers can contact reporting agencies and creditors to file a complaint about identity theft or fraud.  Key facts about identity theft for consumers through the FACT Act The Commission understands that some of its FACT rules may use terms already defined in the FCRA. Accordingly, the Commission amends Part 603 (which no longer contains the circumvention rule) to revise the title (in the „definitions“) and to provide in section 603.1 that any term used in a FACT Act (or other FCRA rule) has the same meaning as in the FCRA, unless otherwise specified in this rule. This provision eliminates the need for each rule to indicate that the terms have the same meaning as in the FCRA.
Another important point was the requirement for mortgage lenders to provide consumers with a credit disclosure notice that includes their credit scores, rating range, credit bureaus, rating models and factors that affect their ratings. This form is usually available from credit bureaus, and many send it directly to the consumer on behalf of lenders. One of the unintended consequences of FACTA is that it may have contributed to the amount of personal data companies need to receive from their customers. For example, a company that requires FACTA to more strictly confirm a customer`s identity or location may need to request more than one form of identification in order to comply with certain provisions of the FATCA. On the one hand, these changes could make the business and the consumer less vulnerable to identity theft or other types of fraud. However, in the event that the hacking or theft of that company`s records takes place in the future, more information about that company`s customers may be available, which may be more detrimental to consumers. The Fair and Accurate Credit Transactions Act of 2003 requires the FTC to enact a set of regulations to implement its provisions amending the Fair Credit Reporting Act. In this lawsuit, the FTC revises the title or position of two rules previously adopted in the Code of Federal Regulations and adds two technical provisions that generally apply to all rules issued by the Commission under the FCRA. In this document, the Commission makes substantial amendments to the Part 602 coming-into-force rule and establishes a new Part 611 containing the provisions of the circumvention rule previously adopted as Part 603. In addition, the Commission is revising Part 603 (i.e., title and § 603.1) to establish that terms defined in the FCRA have the same meaning in the FCRA rules, unless otherwise specified in those rules.
Finally, the Commission adds a new Part 604 stating that a court decision suspending or invalidating a provision of an FCRA rule has no effect on the continued effectiveness of another provision or rule (new section 604.1). The above changes are described in more detail below. The law prohibits merchants from providing credit and debit card expiration dates on electronically printed receipts. When the law went into effect in 2004, the courts received a massive number of lawsuits on expiration dates, and all federal counties that had explicitly addressed the issue are now refusing to hear related class actions. In 2008, Congress passed the Credit and Debit Card Receipt Clarification Act (Clarification Act), which does not intentionally violate merchants who print expiration dates on receipts but comply with the law until June 3, 2008.  In the Clarification Act, Congress stated that „experts in the field agree that the correct abbreviation of the card number per se. Regardless of the inclusion of the expiration date, a potential fraudster prevents identity theft or credit card fraud.  Despite court decisions and the clarifying law, the text of the law remains largely unchanged with respect to the expiry date of supporting documents after June 3, 2008.
The law also prohibits businesses from printing more than five digits of a customer`s card number or card expiration date on a receipt given to the cardholder at the point of sale or transaction. This provision is enforced with statutory damages ranging from $100 to $1,000 per violation, and if the claims are consolidated into a class action lawsuit (filed by all customers of a retailer who did not truncate credit card numbers), the amount of damages can be huge.  The provision excludes handwritten or printed receipts if this is the only way to enter the credit card number. The Act entered into force three years after its promulgation for cash registers manufactured before 1 January 2005 and only one year after its promulgation for cash registers manufactured after 1 January 2005.  In addition, the Commission amends the title of the previously adopted circumvention rule by revising Part 603 to remove these provisions from that Part and instead include them in a new Part 611. This amendment will avoid any conflict with the proposed definition rule which, if ultimately adopted, will be published in Part 603. This amendment allows for a rational provision of the Commission`s FCRA rules in 16 CFR, with rules of general application included in Parts 600-609 and the rules for consumer helplines beginning with the proposed free reporting rule in Part 610. Thus, the rule prohibiting circumvention of the obligation to provide free reports (Part 611) would immediately follow the rule of free reporting. The Commission plans to propose in Part 612 a reasonable fee requirement for the disclosure of notices by consumer helplines under section 212(b) of the FACT Act and has already proposed two identity theft rules such as Part 613 (duration of active duty alerts) and Part 614 (reasonable proof of identity) (69 FR 23369; 28 April 2004). The Fair and Accurate Credit Transactions Act of 2003 (FACT Act or FACTA, Pub.L. 108–159 (Text) (PDF)) is a United States federal law passed by the United States Congress on November 22, 2003 and signed into law by President George W. Bush on December 4, 2003, amending the Fair Credit Reporting Act.
The law allows consumers to request and receive a free credit report every 12 months from one of three national consumer credit reporting agencies (Equifax, Experian, and TransUnion).