E. Other Federal Laws and Guidelines
(FCRA) and FACTA. USA PATRIOT Act,
E-Sing Bank Secrecy Act,
Fair Credit Reporting Act - answeris one of the most important laws that protect
consumer identity and credit information. Ensured that information supplied is accrued
FACTA's main goals - answeris to help consumers fight identity theft by giving
borrowers the right to see what is in their credit file and to have any errors corrected.
Who implements FACTA - answerThe CFPB implements the Fair Credit Reporting Act
through Regulation V
Adverse Action - answerAdverse action has the same meaning that it has under the
ECOA and means any denial or unfavorable change in insurance coverage, or a denial
of employment based on a consumer report.
Consumer Reporting Agency - answerengages in the practice of assembling or
evaluating, and maintaining, for the purpose of furnishing consumer reports to third
parties bearing on a consumer's credit worthiness,
Creditor - answermeans any person who regularly extends, renews, or continues credit;
Fraud Alert - answerelectronic warning placed on your accounts to monitor for
suspicious financial activity.
Notice that the consumer may be a victim of fraud (including identity theft
Identity theft - answermeans a fraud committed using the identifying information of
another person,
Who has accès to consumer files or credit reports? - answerThis normally includes
creditors, government agencies, insurers, employers, landlords, and some businesses.
Additionally, a consumer is entitled to one free credit report from each of the three credit
bureaus every 12 months.
Length of time a bankruptcy will show on a credit history - answerBankruptcies 10 years
Liens, judgments, suits, for 7 years
, what is the fine for obtaining a credit report without proper authorization, or for a credit
reporting agency employee who gives a credit report to an unauthorized person? -
answermay be fined up to $5,000 or imprisoned for not more than 2 years, or both.
What happens a consumer is denied credit, employment, or insurance because of
information in the credit report? - answerthe denying party must alert the consumer and
provide the name, address, and phone number of the credit reporting agency used to
support the denial.
Identity Theft Prevention - answerThe FCRA/FACTA strives to prevent fraud and
identity theft by truncating numbers on debit/credit cards and financial documents,
placing fraud alerts on accounts, and disposing of credit information properly.
Who is subject to The FACTA Disposal and the GLB (Gramm-Leach-Bliley Act) Rule ? -
answerlenders, mortgage brokers, and other mortgage professionals
a. Parties subject to Red Flag Rules - answerNon-depository lenders, such as mortgage
bankers and mortgage brokers
1. Financial institutions and to creditors that offer or maintain "covered accounts"
Who is the enforcement authority for "red flag" rules? - answerCFPB IS PRIMARILY
RESPONSIBLE The Federal Trade Commission (FTC) enforces the Red Flags Rule
The Red Flags Rule was created by the Federal Trade Commission (FTC), along with
other government agencies such as the National Credit Union Administration (NCUA),
to help prevent identity theft
Interagency Guidelines on Identity Theft Detection, Prevention, and Mitigation Section
114 of FACTA. - answerFTC Red Flag Rules.
A covered account - answeris any personal account, such as checking and savings
accounts, credit card accounts, mortgage loans, automobile loans, margin accounts,
and cell phone or utility accounts.
Red flags - answerRed flags are suspicious patterns or practices or specific activities
that indicate the possibility of identity theft. The law lists five categories of warning
signs.
Categories of red flags - answer• Fraud or active duty alert on a credit report
• Notice of credit freeze in response to a request for a credit report
• Notice of address discrepancy
• Pattern of activity inconsistent with the person's history
• Big increase the use of credit, especially on new accounts
• Unusual number of recently established credit relationships
• Account that was closed because of an abuse of account privileges
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