FACT Act Education: Helping Consumers Build Credit & Prevent Fraud
A credit report is your personal financial summary that is seen by banks, credit unions,
and mortgage brokers when you apply for a loan. Protecting the information on this report
and ensuring its accuracy is one of the big concerns consumers have today.

It’s a good idea to check your credit report periodically to check for inaccuracies, or
potential fraud. Otherwise, you may not be aware of errors until you apply for credit and
receive a less than optimum rate or are turned down altogether.

This new law will entitle you to receive a free credit report once per year from www.annualcreditreport.com, or call toll free 877-322-8228. Written requests can
be sent to Annual Credit Report Request Service, P. O. Box 105281, Atlanta, GA 30348-5281.

To help the agencies handle the volume of request expected, the Federal Trade Commission
established a roll-out plan for free reports by region. Beginning December 1, 2004, consumers
living in western states can request a free report; The remaining U.S. states will be deployed
as follows:  Mid-Western states, March 1, 2005; Southern states – June 1, 2005; and
Eastern states and other U.S. territories completing the rollout on September 1, 2005.

Once you receive your report, check account information and payment history. If you note
any errors, contact the creditor directly. Go through your open lines of credit and close any
that you are not likely to use.

FACT Helps Fight ID Theft
The FACT Act also provides consumers with new national identity theft protections.

If you suspect that you are or may become a victim of fraud, you can request an initial fraud
alert be place in your file and provide that alert along with any credit score generated using
your file. The credit reporting agencies must use reasonable procedures to ensure that the
request for a loan or credit is by you, the true consumer, not an identity thief posing as you.
This alert will stay in your file for 90 days.

If you are already a victim of identity theft, you can file an extended alert that offers more
protection. Extended alerts stay on your file for seven years, and creditors are required to
call or contact you before authorizing new credit accounts. The credit reporting agency must
exclude you from any consumer lists it prepares and gives to any third party offer of credit
or insurance.

The law will also enable active duty military personnel to place special alerts on their files
when they are deployed overseas. This alert is good for 12 months.

The FACT Act also helps prevent identity theft before it occurs:
* Merchants are now required to leave all but the five last digits off store receipts, including
the card’s expiration date. This way, slips of paper that many people throw away and may
fall into the wrong hands, do not contain personal credit information.
* If a financial institution receives a request for an additional credit or debit card shortly after
an address change, it will have to contact the cardholder at the former address to make sure
there isn’t fraudulent activity.

Understanding Your Credit Report
The FACT Act addresses your rights as a consumer to have better information about the
contents and use of your credit report.

* Creditors will have to notify consumers about reporting late payments before or within 30
days after reporting the negative information.
* Consumers will receive better information about the ability to opt out of pre-screened mailings.
* Mortgage lenders that use credit scores will have to provide applicants with the credit score information.