One of the provisions of the original Fair Credit Reporting Act was that those requesting credit reports on consumers have a 'permissible purpose' for requesting them. It also allowed consumers that's you to put certain limits on how their reports are used. FACT the Fair and Accurate Credit Transactions Act solidifies consumers' right to privacy of their credit reports. Opting Out of Pre-screened Credit Card Offers All those offers for credit cards that tell you 'You are already approved!'? They now must give you a phone number to call if you want to be taken off the list for receiving pre-screened credit card offers. The number must be clearly labeled with an easy to understand explanation of how to opt out of future mailings. FACT also increases the length of time that you opt out for from two years to five years, and mandates that the Federal Trade Commission must increase consumer awareness of the opt out number. Opting Out of Affiliate Marketing Sharing by Credit Card and Other Companies In addition to being allowed to opt out of credit card offers, consumers must now also be given information on how to opt out of receiving offers from affiliates of a company with whom they do business. Again, the opt out number must be clearly labeled, and the opt out is good for five years. In both cases, at the end of the five years, you must be notified that your opt out period is ending, and be given an opportunity to continue to opt out. Government to Study Use of Information Sharing Among Credit Affiliates The Federal Trade Commission and federal financial agencies are required to study the purposes for which consumer information is shared among affiliates, the type of information that is shared and the choices that consumers have in dictating what information may be shared in what way. The intent is to learn how information is shared among marketing affiliates and whether the need for credit reports is lessened because of it. FACT Protects The Privacy of Medical Information In Your Credit Report Any medical information that appears in your credit report must be coded so that no one can identify the medical provider or the nature of the medical care provided. FACT also prohibits the sharing of medical information about consumers between agencies and companies, or the basing of credit decisions on medical information gleaned from credit reports. Disposal of Consumer Information The FTC will determine regulations within one year regarding the disposal of records containing consumer information and credit information in a way that maintains the privacy of the consumer. The regulations will address methods that may be used, but it will not require that credit reporting agencies and those that receive credit reports destroy the information after use.
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