What is a key requirement of the Fair and Accurate Credit Transactions Act of 2003 (FACTA)?

The key requirement of the Fair and Accurate Credit Transactions Act of 2003 (FACTA) is that it mandates consumers are entitled to receive a free annual credit report from each of the three major credit reporting agencies. This provision was established to promote transparency and allow consumers to monitor their credit reports for accuracy and detect any potential fraud or identity theft.

The act was designed to enhance consumer protection in the credit reporting system, ensuring that individuals can easily access their credit information without incurring costs. By offering a free annual credit report, FACTA empowers consumers with the ability to review their credit history and report inaccuracies, thus encouraging them to take control of their credit profile and financial health.