Credit Score Disclosure
Our Direct Connection to the National Credit Bureaus Assists with Compliance
Are you compliant with FACT Act regulations? If your company handles credit reports during the course of its day-to-day business, you need to know the answer to this question.
The Fair and Accurate Credit Transactions Act (FACT Act or FACTA) passed on January 1, 2004, made several important changes to the Fair Credit Reporting Act. The amendments were designed to make improvements in the following areas:
Access: The laws under the FACT Act are designed to help consumers get easier access to their credit files with the national credit bureaus.
Protection: Many of the new provisions are geared toward providing more comprehensive protection against identity theft and fraud.
Accuracy: Because the quality of a consumer’s credit can largely affect their ability to purchase a home or car, or to get other types of financing, the FACT Act aims at improving the accuracy of credit report information.
Automate Credit Score Disclosures for FACT Act Compliance
The FACT Act requires mortgage lenders to furnish a statement to home loan applicants disclosing their credit score as well as the following information:
- Key factors adversely affecting the score
- The score range
- The date on which the score was created
- The name of the entity that developed the score
Consumers must also be notified if the number of credit inquiries on their file negatively affects their credit score. Many credit reports contain a summary key in the bureau score section where you can quickly see which factors impacted the consumer’s score.
The FACT Act compliance service from Credit Plus
- Automatically delivers credit score disclosures to you or the consumer with every credit report you order
- Simplifies the process
- Dynamically generates the consumer’s unique scoring information using the most up-to-date credit data available
- Includes specific language that is required by the FACT Act
Because of the FACT Act, consumers can:
- Obtain one free credit report per year – or more than one if he or she has been a victim of fraud. Your borrowers may obtain access to their free credit reports by clicking here.
- Place special alerts on their credit files to help prevent thieves from opening new accounts using their identity. For example, military personnel can request an alert on their credit files to prevent someone from using their identity if they are called away for active duty.
- Block from their files any derogatory information that resulted from identity theft.
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