* Fair and Accurate Credit Transactions Act of 2003 * Fraud Alert: New Law Fights Identity Theft Major Overhaul of Credit Rules Provides Early Warning System; A Free Copy of Your Records By SARA SCHAEFER MU�OZ Staff Reporter of THE WALL STREET JOURNAL The most significant overhaul of credit laws in four years will give consumers access to free credit reports and require merchants to notify consumers if they plan to report something negative about their credit. The law -- known as the Fair and Accurate Credit Transactions Act of 2003 -- is expected to be signed by President Bush this week after being cleared last week by the House and the Senate. It has various new protections for consumers. For one, it allows them to restrict credit bureaus from sharing sensitive credit information with businesses. This is designed to make it more difficult for thieves to obtain credit in consumers' names. But it will also give credit bureaus a big opening to pitch even more services at consumers leery about identify theft. The main goal of the law is to curb the growing problem of identity theft. According to the Federal Trade Commission, there were 9.9 million victims of identity theft last year, costing consumers $5 billion. Victims spent a total of 297 million hours resolving problems related to such thefts, according to the commission. Access to credit reports should help consumers flag inaccuracies sooner. Often, victims of identity theft can go for months or years before ever knowing anything is wrong. Currently, consumers must pay between $9 and $15 to view a report and credit score from each bureau. Consumers can get a free copy of their credit report if denied credit. And certain states make free reports available to their residents. But free reports will be available to all consumers within a year of when the legislation is enacted Jan. 1. KEY CHANGES Under the new federal credit law, consumers can: � Obtain one free credit report per year from each of the three credit bureaus � Be notified if merchants report missed payments to credit bureaus � Restrict how the bureaus share sensitive information with businesses The law also includes provisions to protect consumers from the wrath of bill collectors. Businesses will need to verify that consumers actually ran up the bills before turning their case over to collectors. The law is the first to set national safeguards against identity theft, pre-empting most state laws on the subject. The law does leave room for states to decide criminal penalties for identity thieves and limits on sharing Social Security numbers. But some consumer advocates say that states should be allowed to pass their own, tougher laws. Another worry is that consumers will be subjected to more marketing of "fraud monitoring" services from credit bureaus. Currently, services are available from the three credit bureaus, GUS PLC's Experian Information Solutions Inc., Trans Union LLC, and Equifax Inc. Experian says it may step up marketing efforts for fraud alert services to consumers who request free reports. Trans Union and Equifax say their plans aren't set but they expect to expand consumer services. Already, the credit bureaus have created a rapidly growing business out of selling such information. Experian now sells credit reports from all three bureaus for $39.99, unlimited credit reports and credit scores for $89.95 and credit report and score for $14.95, available at www.experian.com. Trans Union LLC. sells the three credit reports for $34.95 and ongoing credit monitoring for $10.95 a quarter, at www.transunion.com. Equifax Inc. offers e-mail alerts on possible fraudulent activity, $20,000 identity theft insurance, unlimited access to your credit report and other services for $9.95 a month, at www.equifax.com. The bureaus say that providing the free reports to consumers could be an administrative hassle but won't cost them much in sales. Some consumer advocates discount the value of such credit monitoring offerings. Ed Mierzwinski, consumer program director with the U.S. Public Interest Research Group, a government watchdog agency in Washington, D.C., says the services offer little protection and are merely preying on consumers' fears. Stuart Pratt, president and CEO of Consumer Data Industry Association, a Washington, D.C.-based trade group that represents the three major credit bureaus, says that the services provide consumers with an extra layer of security, like a car or house alarm. Despite their reservations, consumer groups say the new laws will be crucial in alerting consumers to problems sooner, before credit damage is done. Under the new law, consumers must be notified before a creditor reports a delinquent payment to a credit bureau. This new provision can also serve to remind consumers to keep current with their bills. People who are already victims of identity theft will get more help under the new law. For example, they can now demand that businesses provide them with any records of fraudulent charges. In the past, consumers could ask for such information but businesses weren't compelled to give it to them. Now, all the victim needs to do is present a police report. Write to Sara Schaefer Muñoz at sara.schaefer@wsj.com. Updated November 26, 2003
The only thing they missed was deletion of unauthorized inquiries! Too bad because that would have been a sweet feature!
I think they missed the boat altogether. Identity theft should not be overlooked at all, however the next stp needs to be ammendments to both the FCRA and the FDCPA. In addition, the reporting period needs to be reduced for derogatory information and public records, as well as whom and what should and could be reported. I.E. Medical that my dumbass medical insurance carrier did not pay on for 6 mos. Crap like that! but this is a start! BABY STEPS I GUESS!
1*require merchants to notify consumers if they plan to report something negative about their credit. 2*, the reporting period needs to be reduced for derogatory information and public records, 3*as well as whom and what should and could be reported ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ````````````````````````````````"""""""""""--------------------------- 1*This is long overdue. There is absolutely no excuse for the consumer being the last one to know. 2*the reporting period needs to be reduced to 3 years for any and all derogatory information and public records, 3* also debts under $500 should not be reported and reporting inquires should go by the wayside. """""""""""""""""""""""""""""""""" PS: Once a consumer disputes something the item must be corrected immediately and they have 30 days to prove otherwise or the consumers claim remains as stated by the consumer. FDCPA needs to apply to all creditors OC CA Gov.etc. Another thing is the way default judgments are rendered needs to be corrected. """"""""""""""""""""""""""""""""""
