FACTA May Cause Rise in Complaints
The FACT Act gives consumers a right to a free copy of their credit report once each year. Information that the act requires the FTC to produce will encourage consumers to get copies and will also tell them how to go about getting it. With the new process, the FTC expects that consumers will look more carefully and more frequently at their credit reports - and raise more questions.
The FACT Act also provides consumers with streamlined procedures for filing allegations of errors in the reports. Under the new law, the consumer may file a claim with the bureau or go directly to the institution that reported the information. These two procedures are likely to result in more consumers raising questions about information on their report. Since each question must be investigated and resolved, any institution reporting credit information should be prepared for an increase in required investigations.
Editor's Note: The article was updated on this site 9/12/05.
Copyright © 2004 Compliance Action. Originally appeared in Compliance Action, Vol. 9, No. 6, 6/04
First published on 06/01/2004