Definition
The Fair and Accurate Credit Transactions (FACT) Act of 2003 is an amendment to the Fair Credit Reporting Act (FCRA) that further regulates access to credit reports and establishes new rights for consumers trying to repair their credit.
Analysis
The FACT Act is significant in that it allows, for the first time, free credit reports to all consumers every year. A consumer may request their credit report from each credit bureau once annually.
Credit bureaus are required to collaborate on a joint service that helps consumers receive their credit reports. The annual credit report service is funded by the three main consumer credit bureaus that also supply the credit reports.
The FACT Act requires credit bureaus to facilitate the disputing of inaccurate information on a credit file. Consumers have the right to accurate credit reporting, and credit bureaus must make reasonable accommodations for allowing consumers to dispute and correct any inaccuracies.
