fair and accurate credit transactions act

#Fair and accurate credit transactions act series#

For that reason, it is important to know the rights and protections you have under federal law as it relates to stolen information. Identity theft continues to be a threat to consumers and their financial lives as it can lead to serious issues with an individual credit report that are a challenge to correct.

Combined with the advancing technology used by cyber criminals to steal consumer information, it is no surprise that nearly 17.6 million Americans suffered from identity theft in 2014, the latest year for which data is available from the Bureau of Justice Statistics.

Federal enforcement can charge penalties of up to $2500 for each independent violation.The growing trend of shopping and banking online or through mobile phones plays a significant role in the increasing number of identity theft victims each year.

If the violation is brought into a class action, the statutory damages can easily range into the millions. Civil Penalties can be up to $1000 per customer for statutory damages.Monetary penalty amounts can vary, depending on the violation and actual damages incurred. This response could be as simple as notifying law enforcement, changing passwords, or contacting the customer.įACTA violations can lead to civil liabilities, class actions, federal or state enforcement. Once red flags are detected, one or more responses, appropriate to the threat, should be followed up. Alerts from customers, law enforcement or other persons.Any suspicious documents, personal identifying information, suspicious accounts or any other related activity.Red flags are any cause of alarm or warning signs regarding a person or persons credit report or personal information, that should immediately be responded to. These theft protection programs are meant to find, and impede identity theft, and should be set up to reflect the size and complexness of each individual institution. Add identity theft and active duty alertsĪn addition to FACTA in 2007, known as “Red Rules”, dictates that both financial establishments and their creditors create an Identity Theft Protection Program.Correct or delete any inaccurate information on the credit report.Get your consent before providing credit information to an employer.Disclose your credit file on your request.It is a piece of legislation that was enacted in order to protect consumer information, and to keep credit reports accurately updated.įCRA dictates that reporting agencies must: The FCRA (Fair Credit Reporting Act) of 1970 is one of the first examples of a data protection law to be passed. These guidelines also include the “Red Flag Rules,” which delegate theft prevention programs. It was established to help safeguard consumers from the danger of identity theft, and establishes rules on how consumer information can be used or shared.

#Fair and accurate credit transactions act series#

Here we begin a series discussing various legislations and policies that we adhere to so our call center not only protects information but insures our success, starting with FACTA.įACTA, or the Fair and Accurate Credit Transactions Act of 2003, is an amendment to the original 1970 Fair Credit Reporting Act (FCRA). So when it comes to compliance, knowledge is necessary. Non-adherence and non-compliance to any local and national legislation can have serious ramifications that can add up to hefty fines. Call center compliance is as important to success as headsets and a dialer.