UNIT 4 DB LAW 206
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American Military University *
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Course
206
Subject
Law
Date
Jan 9, 2024
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docx
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Uploaded by ProfessorRam11604
After reading about the Fair and Accurate Credit Transactions Act (FACT ACT) on pages
1371-1372 of the textbook, answer the following:
Describe the ways that the provisions of the FACT ACT combat the problem of identity
theft. Do you think that the FACT ACT goes far enough? Explain why or why not?
Ways the provisions of the FACT ACT combat problems of identity theft are. “The FACT ACT
aids victims of identity theft by allowing them to file identity theft reports with consumer
reporting agencies and by requiring such agencies to include “fraud alerts” in their credit reports
about consumers who believe they have been victimized by someone else’s fraudulent use of
their financial information.”
LangVardt, A.W., Barnes, A.J., Prenkert, J.D., McRrory, M.A., & Perry, J.E. (2019).
Business
Law
(17
th
ed.) (P.1371)
“FACT ACT required the FTC and various other government agencies to promulgate regulations
setting standards for appropriate disposal of financial information about consumers by
companies that possess such information. Disposal for purposes of the standards would include
not only discarding the information but also selling the information. The FACT ACT
requirements was designated to minimize the chances the consumers financial information would
fall into the hands of, or be purchased by would-be identity thieves.”
LangVardt, A.W., Barnes, A.J., Prenkert, J.D., McRrory, M.A., & Perry, J.E. (2019).
Business
Law
(17
th
ed.) (P.1371)
I do not think the FACT ACT goes far enough. Reason why is because. After a little further
research, it states the FACT ACT which was passed under President George W. Bush due to the
increase of identity theft. Congress enacted FACT ACT in late 2003. Another and big part that
stood out to me is consumers can obtain a copy of their credit report for free once every 12
months. (
www.annualcreditreport.com
) Also implanted more protection for consumers by
allowing them to register their own fraud alerts on their own credit cards which I think is good
because sometimes banks or lenders may not do so in a timely manner.
A couple of other things where FACT ACT didn’t go far enough in is.
“FACTA also contained measures designed to bolster consumer protection mechanisms more
generally. For instance, it placed new requirements on
mortgage lenders
to disclose the
credit
scores
and other factors that influenced their decision about whether or not to approve a
mortgage request. This includes releasing to customers the so-called “
risk-based-pricing
”
factors used in their decision, as well as any specific issues noted on the consumer’s credit
report.”
“FACTA also included many new rules for businesses and financial service providers. In
particular, it permitted enforcement agencies to take action on any violations of “Red Flag
Rules.”
Jason Fernando and Toby Walter,
Fair and Accurate
Credit Transactions Act (FACTA), 2020
https://www.investopedia.com/terms/f/facta.asp
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