Which law mandates Consumer Reporting Agencies to place a fraud alert for 90 days based on a phone call?

Which law mandates Consumer Reporting Agencies to place a fraud alert for 90 days based on a phone call?

• A. The Fair and Accurate Credit Transaction Act (FACTA)
• B. The Fair Housing Act (FH ACT)
• C. The Identity Theft Prevention Act
• D. The Fair Credit Reporting Act (FCRA)

Answer: (A)

The Fair and Accurate Credit Transactions Act (FACTA) is responsible for mandating that Consumer Reporting Agencies place a fraud alert for a duration of 90 days upon the consumer's request via a phone call. FACTA serves to enhance consumer protections concerning credit reporting and identity theft by requiring that credit reporting agencies take specific actions when fraud is suspected. By allowing consumers to initiate fraud alerts over the phone, FACTA makes it easier for individuals who believe they may be victims of identity theft to protect their financial information quickly and effectively. This prompt action helps to prevent fraudulent activities from affecting their credit history and score in a timely manner. While other laws listed, such as the Fair Housing Act, focus on housing discrimination, and the Fair Credit Reporting Act (FCRA) relates to how consumer credit information is collected and used, it is FACTA specifically that addresses the procedures for placing fraud alerts, thus making it the correct answer in this context. The Identity Theft Prevention Act also relates to identity theft but does not directly govern the process and duration of fraud alerts in the same manner as FACTA.

The Fair and Accurate Credit Transactions Act (FACTA) is responsible for mandating that Consumer Reporting Agencies place a fraud alert for a duration of 90 days upon the consumer's request via a phone call. FACTA serves to enhance consumer protections concerning credit reporting and identity theft by requiring that credit reporting agencies take specific actions when fraud is suspected.

By allowing consumers to initiate fraud alerts over the phone, FACTA makes it easier for individuals who believe they may be victims of identity theft to protect their financial information quickly and effectively. This prompt action helps to prevent fraudulent activities from affecting their credit history and score in a timely manner.

While other laws listed, such as the Fair Housing Act, focus on housing discrimination, and the Fair Credit Reporting Act (FCRA) relates to how consumer credit information is collected and used, it is FACTA specifically that addresses the procedures for placing fraud alerts, thus making it the correct answer in this context. The Identity Theft Prevention Act also relates to identity theft but does not directly govern the process and duration of fraud alerts in the same manner as FACTA.