FTC Testimonies Regarding Credit Report and ID Theft

Credit report theft and ID (Identity) theft are huge issues right now. The Federal Trade Commission testifies to actions it is taking against this.

The FTC (Federal Trade Commission) has revealed steps it would take to deal with this national problem (an issue that is also a problem worldwide).

David Vladeck, the Director of the Bureau of Consumer Protection run by the FTC, attests to the fact that the FTC has completed projects related to the Fair and Accurate Credit Transactions Act of 2003 (FACT Act of 2003).

Responsibilities of FTC

Regarding the FACT Act of 2003, the FTC was assigned the responsibility of developing 20 rules, guidelines, compliance forms, and notices. They also are responsible for conducting studies and formulating reports to Congress.

Recent FTC actions taken regarding this include the following:

• This governing entity has authorized the website Annual Credit Report.com. This was done to make it easier for people to get free annual credit reports.
• Actions preventing consumers from obtaining a free credit report have been taken. Now consumers have it easier than ever when deciding to do so.
• If a company wants to sell supposed free credit reports that are only free with a free trial they are expected to notify consumers that these are “not the federally mandated free reports.”
• The FTC has also required agencies to not advertise on Annual Credit Report.com until after people who sign up have received their free credit report to which they are entitled.
• Efforts have also been made to enforce accuracy of information provided on each person’s personal files. Provision has been made to make disputing of this information easier in the event an error on a credit report is noticed.
• A Risk-Based Pricing Rule has been established. Part of this ruling indicates that consumers must be notified when their personal information has been used to provide less than favorable terms.
• Further documentation to help consumers understand their credit report and how it is used has been published. Explanation of how it is used to determine eligibility for financing or insurance is part of this education.

Role of FTC

The role of the Federal Trade Commission is to prevent fraud and deception related to unfair business practices. This organization also helps provide information to stop and spot fraud and also helps people find ways to avoid it. This regulatory entity also provides free consumer information as well as a way for consumers to lodge complaints when needed.