What rights do consumers have to monitor credit under FACTA?

• A. They must pay for all credit reports and have no alerts.
• B. They can obtain free annual credit reports, place fraud alerts, and monitor for unauthorized activity.
• C. They only receive one credit report in their lifetime.
• D. They have no rights to monitor credit.

Answer: (B)

Under FACTA, consumers have meaningful ways to monitor and protect their credit. The law ensures you can access your credit information and watch for signs of fraud. Specifically, you can obtain free annual credit reports from each of the three nationwide credit reporting agencies, giving you regular, comprehensive visibility into what’s in your file and the opportunity to spot errors or unauthorized activity. You can also place a fraud alert on your file, which prompts lenders to take extra steps to verify your identity before opening new credit in your name. There are two common forms: an initial fraud alert lasts about a year, and an extended fraud alert lasts seven years if you provide an identity theft affidavit. Finally, you have the right to monitor for unauthorized activity by reviewing your reports and using credit monitoring options to catch suspicious changes early. These protections together embody FACTA’s consumer rights to monitor and safeguard credit activity.