The Fair and Accurate Credit Transactions Act of 2003 (FACTA) is a federal law passed by Congress as an amendment to the Fair Credit Reporting Act. The act allows consumers to request and obtain a free credit report once every twelve months from each of the three nationwide consumer credit reporting agencies. There are also provisions in the act to help reduce identity theft, such as the ability for individuals to place alerts on their credit histories if identity theft is suspected.
FACTA also placed requirements on certain businesses. For example, financial institutions face a mandatory deadline of November 1, 2008 to comply with three FACTA regulations referred to as the Red Flag Rules. The first requires financial institutions or creditors to develop and implement an Identity Theft Prevention Program in connection with new and existing accounts. The program must include reasonable policies and procedures for detecting, preventing, and mitigating identity theft.
To aid your business with the compliance and obligations of the Fair and Accurate Credit Transactions Act of 2003 (FACTA), SESCO Management Consultants has developed the Fair and Accurate Credit Transactions Act Administrative Guide. Thisquide summarizes the responsibilities imposed by theFTC as well as how employers can comply with the "Red Flag Rules".