Definition:
The Fair and Accurate Credit Transactions Act (FACTA) is a consumer rights bill that was passed in 2004 which went in effect in June 1, 2005. This piece of legislation provides guidelines for how consumer information is handled by any organization which collects that information.
FACTA was put in place as a method to lower the risk to consumers of identity theft and credit fraud. In part, FACTA entitles consumers to one free credit report per year from each of the three credit reporting agencies for the purposes of review.
FACTA also outlines penalties for organizations found to be putting consumers or employees at risk by not properly handling their personal, identifying information.
Also Known As: FACTA