Fair and Accurate Credit Transaction Act of 2003 | FACTA | FACT ACT | Overview

Known as the Fair and Accurate Credit Transaction Act of 2003 - FACTA or the FACT ACT- as it’s commonly referred to, contains essential provisions for helping reduce the growing problem of identity theft by allowing consumers to place fraud alerts on consumer reporting agency files (i.e., the credit scoring bureaus). Additionally, FACTA also prohibits businesses from printing more than 5 digits of any customer's card number or card expiration date on any receipt provided to the cardholder at the point of sale or transaction.

Furthermore, FACTA mandates that regulations be established by certain government agencies regarding the detection of identity theft by financial institutions and creditors. As an employee, you need to be aware of these provisions regarding the protection of any consumer information held by the organization. Additionally, if you feel your identity has been compromised in any way, then it’s important to place “fraud alerts” on your consumer information with the major credit reporting agencies. 

Policies and Procedures are an Important Component for FACTA Compliance

Administratively speaking, it’s also important to note that FACTA essentially enhanced the Fair Credit Reporting Act (FCRA) by adding new sections pertaining to identity theft, and the actual FACTA ruling. Interestingly, FACTA contains numerous (17 to be specific) mentions of “policies and procedures”, such as the following:

“Each consumer reporting agency described in section 603(p) shall establish policies and procedures to comply with…”
“…the creditor or financial institution shall follow reasonable policies and procedures…”

Information Security Policies | Hundreds Available for Download

Thus, the organizations responsible for putting in place and adhering to the FACTA requirements also have mandates for various operational, business specific, and information security policies and procedures. More specifically, ensuring the safety and security of consumer financial data starts with the very organizations that store, process, and transmit such data on a regular basis. It’s why organizations also turn to FLANK and the FLANK21 set of documents containing literally hundreds of industry leading, high-quality policies, procedures, forms, checklists, templates, and so much more.