How long does an active duty alert last?

Study for the Fair and Accurate Credit Transactions (FACT) Act Exam. Practice with multiple choice questions and detailed explanations. Enhance your knowledge and prepare effectively for the exam.

Multiple Choice

How long does an active duty alert last?

Explanation:
Active-duty alert is a protection under the FACT Act that makes lenders verify identity more carefully when a service member is on active duty. The alert is placed on the consumer’s credit report and lasts one year from the date it’s activated; during this year, creditors must take extra steps to confirm the person’s identity before extending new credit. If the service member remains on active duty, the alert can be renewed to extend coverage beyond the initial year, but the standard duration most exams focus on is one year. Therefore, the correct answer is one year.

Active-duty alert is a protection under the FACT Act that makes lenders verify identity more carefully when a service member is on active duty. The alert is placed on the consumer’s credit report and lasts one year from the date it’s activated; during this year, creditors must take extra steps to confirm the person’s identity before extending new credit. If the service member remains on active duty, the alert can be renewed to extend coverage beyond the initial year, but the standard duration most exams focus on is one year. Therefore, the correct answer is one year.

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