FACT Act Rules & Implications

When is obtained info NOT considered a consumer report?

- stems from investigation to employee misconduct relating to employment - stems from investigation of compliance with federal, state, or local laws and regulations; or the rules of any self-regulatory organization; or any pre-existing written policies of the employer

How long is the marketing "opt-out" decision valid for consumers?

Five years

Can creditors ever use medical info on a credit report in the determination of credit?

No

When must a Consumer Reporting Agency block consumer information?

No later than 4 days after consumer identifies it is a result of ID theft, by providing the agency: - proof of identity of the consumer; - a copy of the ID theft affidavit; - identification of the questionable info; and - a statement from the consumer that the info is not the result of any transaction by them

Can Consumer Reporting Agencies disclose medical info for an employment check?

No; UNLESS consumer agrees to disclosure and the info is relevant

Must consumers report fraud to every Consumer Reporting Agency?

No; agencies are required to share fraud alerts with other agencies

Definition: Fraud Alert/Active Duty Alert

Statement placed on a consumer's file upon their request notifying all prospective users of a credit report that a consumer may be a victim of fraud or identity theft, or is an active duty military consumer

Requirements of a FIs "Red Flag" or "Identity Theft Prevention" programs

- must cover both consumers and businesses - required to maintain related policies/procedures - programs must be written and approved by BoD - must include provisions for the management of dormant accounts

How long must active duty alerts remain on file?

12 months Consumer must also be removed form prescreening offers for two years

Definition: Credit Score

A numerical value derived from a statistical tool to predict the likelihood of certain behaviors

Definition: Reseller

A Consumer Reporting Agency that assemblies and merges information from one or more other Consumer Reporting Agencies in order to furnish a report to any third party; does not maintain own database

Definition: Identity Theft

A fraud committed using the identifying information of another person

Definition: Identifying Information

Any name or number that may be used, alone or in conjunction with any other info, to identify a specific person. Name, DOB, SS#, official ID#s, taxpayer #s, unique biometric data, unique electronic address or routing code, telephone #s, etc.

How long must initial fraud alerts remain on file?

At least 90 days from the date of consumer's request

How must FIs notify consumers of providing negative info to a Consumer Reporting Agency?

In writing, no later than 30 days after providing the info. Can also do a standardized one-time notice to all customers instead.

Definition: Credit Report

Lists an individual's name, previous names/aliases, occupation, current/previous addresses, SS#, credit activity, and credit history

Purpose of the FACT Act?

Provides the ability to consumers to combat identity theft, protect the accuracy of their credit reports, and exert more control over the type and amount if marketing solicitations they receive

How long must extended fraud alerts remain on file? What other requirements?

Seven years - consumer MAY be required to provide an affidavit/ criminal report - consumer must be taken out of prescreening offers for five years