How did the Fair and Accurate Credit Transactions Act (FACTA) amend the Fair Credit Reporting Act (FCRA)?
How did the Fair and Accurate Credit Transactions Act (FACTA) amend the Fair Credit Reporting Act (FCRA)?
The Fair and Accurate Credit Transactions Act (FACTA) amended the Fair Credit Reporting Act (FCRA) by increasing the obligations of organizations to dispose of consumer data in ways that prevent unauthorized access. This amendment was meant to enhance consumer privacy and reduce the risk of identity theft.
“n 2003, the Fair and Accurate Credit Transactions Act (FACTA) amended FCRA. The amendments preempted a wide range of state laws on credit reporting, identity theft and other areas within the FCRA.61 FACTA, however, specifically left some existing state laws in effect, notably the California Investigative Consumer Reporting Agencies Act (ICRAA).62 Under the ICRAA, employers must notify applicants and employees of their intention to obtain and use a consumer report. Once disclosure is made, the employer must obtain the applicant or employee’s written authorization prior to requesting the report” Excerpt From: “IAPP_US_Private_Sector_Privacy_3E.” Apple Books.
Consumer reports may always be shared with written permission from a consumer. Without consumer consent, reports may only be shared for limited other “permissible purposes,” In 2003, the Fair and Accurate Credit Transactions Act (FACTA) amended. FCRA the amendments pre-empted a wide range of state laws on credit reporting, identity theft and other areas within the FCRA FACTA, however, specifically left some existing state laws in effect, notably the California Investigative Consumer Reporting Agencies Act (ICRAA). Under the ICRAA, employers must notify applicants and employees of their intention to obtain and use a consumer report. Once disclosure is made, the employer must obtain the applicant or employee’s written authorization prior to requesting the report.