Which statement best describes FACTA’s effect on consumer rights and protections?

• A. It reduces access to credit reports.
• B. It has no impact on consumer rights.
• C. It protects lenders' interests only.
• D. It strengthens consumer rights by providing fraud alerts, free reports, and prevention requirements.

Answer: (D)

FACTA expands and strengthens consumer protections by giving people more tools to monitor and shield their credit information. It adds fraud alert options so you can flag potential identity theft and have lenders verify your identity more carefully, it guarantees free credit reports so you can regularly check what’s being reported, and it imposes prevention requirements on businesses handling sensitive data to reduce the risk of misuse. These elements together improve consumer rights and protections, rather than limiting access, having no effect, or focusing only on lenders’ interests.