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