five years. Criminal penalties of up to ten years’ imprisonment and fines of up to $500,000 (for an individual) or $1 million (for a company), are possible if the acts are committed or attempted while violating another U.S. law, or as part of a pattern of illegal activity involving more than $100,000 in a year.
Fair Credit Reporting Act (FCRA) and Fair and Accurate Credit Transactions Act (FACTA)
The Fair Credit Reporting Act (FCRA) as amended by the Fair and Accurate Credit Transactions Act (FACTA) limits how consumer reports and credit card account numbers can be used and disclosed. The FCRA applies to businesses that compile “consumer reports” as well as those who use such reports (lenders and employers) or those who provide consumer credit information to consumer reporting agencies (also known as credit reporting agencies, such as lenders, creditors, and credit card companies). What is a Consumer Report? A consumer report is any communication issued by a consumer reporting agency that is used to evaluate a consumer’s eligibility for credit, employment, or insurance that relates to a consumer’s creditworthiness, credit history, credit capacity, character, or general reputation. A consumer report containing information about a consumer’s character, general reputation, personal characteristics, or mode of living gathered through personal interviews with neighbors, friends, or associates of the consumer is called an “investigative consumer report.” Purpose. Companies that are subject to these laws are required, among other things, to implement programs to help mitigate the risk of identity theft and unauthorized access to consumer reports. The FCRA requires companies that use credit reports to give consumers notice of adverse action resulting from a consumer report (e.g., credit denial or declining to offer employment based on a consumer report) and also requires notices to be provided to a consumer when an investigative consumer report is obtained.
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