What is the primary purpose of the Fair and Accurate Credit Transactions Act (FACT Act)?

The primary purpose of the Fair and Accurate Credit Transactions Act (FACT Act) is to provide consumers protection against identity theft. This legislation was specifically designed to address increasing concerns about identity theft and the security of consumer information. Among its many provisions, the FACT Act mandates that consumers have the right to access their credit reports at no cost, thereby allowing them to monitor their credit history for inaccuracies and signs of identity theft.

Additionally, the act encourages credit reporting agencies to implement measures to safeguard personal information and to offer identity theft prevention services, like fraud alerts and credit freezes. This focus on protecting consumers from identity theft distinguishes the FACT Act from other legislation, which may target various aspects of lending practices or credit reporting accuracy, but does not specifically prioritize consumer protection in the same way.