FACTA / Red Flags Rule / Telemarketing

______ fine for calling someone who is on the list

$16,000

2 exceptions to the Established business relationship rule (telemarketing)

1. 90 day exception after an application is taken 2. 18 months from a transaction

A few things that came from the FACTA law

1. Credit score disclosure 2. Negative Information

Telemarketers must keep records for ____________

2 years

How long do you have to comply if a consumer wants to be put on the Do Not Call registry?

30 days

Companies must update and synchronize their internal Do Not Call records with the National Registry every _______

31 days

Negative Information

A borrower must be notified within 30 days of a creditor placing negative information on their credit file. This allows the consumer the ability to dispute the information in a more timely manner - lenders must resolve disputes within 30 days

What is considered to be a covered account according to FACTA a. Corporate checking account b. personal checking account c. utility bill d. telephone bill

B

Borrowers can or cannot dispute Accurate Credit info

Cannot

FACTA amended the

FCRA - Fair Credit Reporting Act

FACTA stands for

Fair and Accurate Credit Transaction Act

What is the credit score disclosure

Required under FACTA to disclose to our clients upfront in the application process whet the range of available scores are and what their score was and the factors that adversely affected their score as well as the company who provided the score

Telemarketing rules are a part of TCPA or

Telephone Consumer Protection Act

Red Flag is

a suspicious activity, potential pattern or practice or a danger to a borrower's credit information being used for identity theft

FTC (Federal Trade Commission) created, maintains and monitors

compliance with the Red Flags Rule

The purpose of FACTA is to

curb identity theft, improve customer dispute resolution, improve accuracy of consumer records

This law expanded the definition of "creditor" to not just include Financial Institutions but anyone who

offers a service that is paid for later (utility, mobile phone)

Every company is required to have a written Red Flags Plan in place and each company plan will vary depending on the

size, scope, complexity of the organization