If a consumer suspects identity theft, what rights do they have under FACTA?

• A. They must notify the police only
• B. They have no rights
• C. They can place a fraud alert and obtain free annual reports
• D. They must hire a lawyer

Answer: (C)

When someone suspects identity theft, FACTA gives practical steps to protect their credit: you can place a fraud alert on your credit file and you can request free copies of your credit reports. A fraud alert signals lenders to take extra steps to verify your identity before opening new accounts, helping stop fraudulent activity. When you place an alert with one major credit reporting agency, that agency notifies the other two, broadening the protection across all your credit files.

FACTA also ensures you can obtain free annual credit reports from each of the major credit reporting agencies. Checking these reports lets you spot unfamiliar accounts or inquiries and dispute anything fraudulent, giving you another tool to monitor and protect your credit.

The options suggesting you must notify the police only, that you have no rights, or that you must hire a lawyer aren’t accurate reflections of FACTA. Police notification or legal representation isn’t required by FACTA for identity-theft protections, and you do have these rights to fraud alerts and free annual reports.