The facts of FACT

Thanks to The Fair and Accurate Credit Transactions Act of 2004 (FACT), which was signed into law in December 2003, consumers now have more tools at their disposal to fight identity theft, protect against credit card fraud, and check up on the health of their total credit picture.

A key provision of the new law ensures that you can obtain a free credit report every year from each of the three major credit bureaus (Experian, TransUnion and Equifax), from a single, centralized source. The procedure established by the Federal Trade Commission calls for a phase-in, beginning with the Western states in December 2004. For those in the Midwest, including Indiana, you have the right to obtain free reports effective March 1, 2005. For Kentucky residents, availability began June 1, 2005. To order your free reports, go to www.annualcreditreport.com, where you can order your reports directly or download the Annual Credit Report Request form to mail in your request. You can also call 877-322-8228. For more information, see the FTC’s Facts for Consumers at www.ftc.gov/bcp/conline/pubs/credit/freereports.htm.

Other key provisions of the FACT Act protecting consumers include:

• Creates a national fraud alert system to simplify consumers’ ability to report suspicious activity regarding their account.
• Ensures that consumers are notified that negative information which could harm their creditworthiness may be reported to a credit bureau.
• Provides consumers enhanced medical privacy protections.

Provisions affecting financial institutions and businesses include:

• Requires creditors to take specific precautions to ensure that new credit applications are legitimate.
• Prohibits merchants from printing more than the last five digits of a credit card on a receipt.
• Requires banks to develop and promote policies to combat identity theft and credit card fraud.