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New FACT Act credit reporting duties begin for dealers Dec. 1

November 23, 2010
Several new duties regarding the Fair Credit Reporting Act take effect beginning Dec. 1, to combat identity theft, enhance the accuracy of credit reports and provide consumers with greater control over the marketing solicitations they receive on consumer reporting agencies, credit report users, creditors and others. The amendments, referred to as the Fair and Accurate Credit Transactions (FACT) Act of 2003, include several areas likely to impact dealers: • Section 112: Fraud and Active Duty Alerts • Section 113: Truncation of Credit Card Numbers • Section 114: Procedures for Identifying ID Theft • Section 216: Disposal of Consumer Report Information • Section 311: Notice of Use of Credit Reports in Riskbased Pricing • Section 315: Reconciling Different Addresses Dealers should focus on compliance with Section 112, which takes effect Dec. 1. The other sections either have a later compliance date or must first be acted upon by the Federal Trade Commission before dealer compliance is necessary. Section 112 allows consumers who know or suspect they are victims of identity theft to place an "initial fraud alert" or an "extended fraud alert" in their consumer files. Review FACT Act information on the FTC Web site at From the main page, click on Fair Credit Reporting Act in the right column.