Fair and Accurate Credit Transaction Act Public Law 108-159

The 1996 amendments require that consumers be notified when turned down because of their credit score. In addition, consumer disputes regarding the accuracy of their credit report must be investigated within a certain timeframe.

Under the 2003 law, consumers are now entitled to one free credit report per year. The new law also creates a variety of new financial education initiatives, to be carried out by a Financial Literacy and Education Commission. This commission is charged with improving financial literacy materials produced by the federal government, embarking on a national public service multimedia campaign, and creating a toll-free number and a website that provides financial literacy resources. FACTA also includes a variety of measures aimed at preventing identity theft, through a national fraud alert and detection system and new safeguards, including the truncation of social security and credit card numbers on receipts and other documents. In addition to greater consumer protections, this law also makes permanent a provision that pre-empts states from enacting more extensive consumer protections.