The Fair and Accurate Credit Transactions Act of 2003 (FACT Act or FACTA, Pub.L. 108-159) is a United States federal law, passed by the United States Congress on November 22, 2003, and signed by President George W. Bush on December 4, 2003, 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 companies (Equifax, Experian and TransUnion). In cooperation with the Federal Trade Commission, the three major credit reporting agencies set up the website, annualcreditreport.com, to provide free access to annual credit reports.
Disposal Rule. This federal law is designed to minimize the risk for consumer fraud and identity theft by enforcing the proper disposal of consumer information. This includes but is not limited to credit cards, monthly billed accounts like utility bills or cell phone bills, social security numbers, and drivers’ license numbers etc. Any type of information that could possibly aid in the theft of a person’s identity. The rule gives specific details of the proper ways that these documents and information should be handled and disposed of.
Here are links to the FACTA in full:
PUBLIC LAW 108–159—DEC. 4, 2003
FAIR AND ACCURATE CREDIT TRANSACTIONS
ACT OF 2003
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117 STAT. 1952 PUBLIC LAW 108–159—DEC. 4, 2003
Public Law 108–159
To amend the Fair Credit Reporting Act, to prevent identity theft, improve resolution
of consumer disputes, improve the accuracy of consumer records, make improvements
in the use of, and consumer access to, credit information, and for other
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Fair and
Accurate Credit Transactions Act of 2003’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Effective dates.
TITLE I—IDENTITY THEFT PREVENTION AND CREDIT HISTORY
Subtitle A—Identity Theft Prevention
Sec. 111. Amendment to definitions.
Sec. 112. Fraud alerts and active duty alerts.
Sec. 113. Truncation of credit card and debit card account numbers.
Sec. 114. Establishment of procedures for the identification of possible instances of
Sec. 115. Authority to truncate social security numbers.
Subtitle B—Protection and Restoration of Identity Theft Victim Credit History
Sec. 151. Summary of rights of identity theft victims.
Sec. 152. Blocking of information resulting from identity theft.
Sec. 153. Coordination of identity theft complaint investigations.
Sec. 154. Prevention of repollution of consumer reports.
Sec. 155. Notice by debt collectors with respect to fraudulent information.
Sec. 156. Statute of limitations.
Sec. 157. Study on the use of technology to combat identity theft.
TITLE II—IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT
Sec. 211. Free consumer reports.
Sec. 212. Disclosure of credit scores.
Sec. 213. Enhanced disclosure of the means available to opt out of prescreened
Sec. 214. Affiliate sharing.
Sec. 215. Study of effects of credit scores and credit-based insurance scores on
availability and affordability of financial products.
Sec. 216. Disposal of consumer report information and records.
Sec. 217. Requirement to disclose communications to a consumer reporting agency.
TITLE III—ENHANCING THE ACCURACY OF CONSUMER REPORT
Sec. 311. Risk-based pricing notice.
15 USC 1601
Dec. 4, 2003
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PUBLIC LAW 108–159—DEC. 4, 2003 117 STAT. 1953
Sec. 312. Procedures to enhance the accuracy and integrity of information furnished
to consumer reporting agencies.
Sec. 313. FTC and consumer reporting agency action concerning complaints.
Sec. 314. Improved disclosure of the results of reinvestigation.
Sec. 315. Reconciling addresses.
Sec. 316. Notice of dispute through reseller.
Sec. 317. Reasonable reinvestigation required.
Sec. 318. FTC study of issues relating to the Fair Credit Reporting Act.
Sec. 319. FTC study of the accuracy of consumer reports.
TITLE IV—LIMITING THE USE AND SHARING OF MEDICAL INFORMATION
IN THE FINANCIAL SYSTEM
Sec. 411. Protection of medical information in the financial system.
Sec. 412. Confidentiality of medical contact information in consumer reports.
TITLE V—FINANCIAL LITERACY AND EDUCATION IMPROVEMENT
Sec. 511. Short title.
Sec. 512. Definitions.
Sec. 513. Establishment of Financial Literacy and Education Commission.
Sec. 514. Duties of the Commission.
Sec. 515. Powers of the Commission.
Sec. 516. Commission personnel matters.
Sec. 517. Studies by the Comptroller General.
Sec. 518. The national public service multimedia campaign to enhance the state of
Sec. 519. Authorization of appropriations.
TITLE VI—PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS
Sec. 611. Certain employee investigation communications excluded from definition
of consumer report.
TITLE VII—RELATION TO STATE LAWS
Sec. 711. Relation to State laws.
Sec. 811. Clerical amendments.
SEC. 2. DEFINITIONS.
As used in this Act—
(1) the term ‘‘Board’’ means the Board of Governors of
the Federal Reserve System;
(2) the term ‘‘Commission’’, other than as used in title
V, means the Federal Trade Commission;
(3) the terms ‘‘consumer’’, ‘‘consumer report’’, ‘‘consumer
reporting agency’’, ‘‘creditor’’, ‘‘Federal banking agencies’’, and
‘‘financial institution’’ have the same meanings as in section
603 of the Fair Credit Reporting Act, as amended by this
(4) the term ‘‘affiliates’’ means persons that are related
by common ownership or affiliated by corporate control.
SEC. 3. EFFECTIVE DATES.
Except as otherwise specifically provided in this Act and the
amendments made by this Act—
(1) before the end of the 2-month period beginning on
the date of enactment of this Act, the Board and the Commission
shall jointly prescribe regulations in final form establishing
effective dates for each provision of this Act; and
(2) the regulations prescribed under paragraph (1) shall
establish effective dates that are as early as possible, while
allowing a reasonable time for the implementation of the provisions
of this Act, but in no case shall any such effective date
be later than 10 months after the date of issuance of such
regulations in final form.
15 USC 1681
15 USC 1681
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117 STAT. 1954 PUBLIC LAW 108–159—DEC. 4, 2003