The following are a few of the federal laws that apply to consumers. Some states have additional consumer rights laws that apply, so be sure employees understand these as well:

• Identity Theft and Assumption Deterrence Act – Enacted in 1998, this act officially makes identity theft a federal crime.
• Fair Credit Reporting Act (FCRA) – Regulates the collection, dissemination, and use of consumer credit information. The FCRA establishes many consumer rights, including the right to a free credit report, and also defines the procedures for correcting fraudulent or inaccurate information on the report.
• Fair and Accurate Credit Transactions Act (FACTA) – An amendment to FCRA, this establishes the consumers right to place fraud alerts in their credit files and requires the secure disposal of consumer information by businesses. The act also includes the new Red Flags Rule for identity theft prevention.
• Electronic Funds Transfer Act (EFTA) – Protects consumers from fraudulent electronic transactions. If the consumer reports the fraud within two days of discovery, liability is limited to $50, provided the transactions occurred less than 60 days prior.
• Fair Debt Collection Practices Act (FDCPA) – This law eliminates abusive practices in the collection of consumer debt and establishes guidelines for collection agencies.
• Fair Credit Billing Act (FCBA) – An amendment to the Truth in Lending Act, this law protects consumers from unfair billing practices and provides a mechanism for addressing billing errors in open ended credit accounts. It also establishes protections for the consumer in the event the credit account is used fraudulently.

Customers who receive top-notch treatment in the midst of a crisis situation often become not just loyal customers, but also advocates who urge family and friends to take advantage of the superior service your bank provides.

By Jeremiah Miller
Director of Operations, Investigation and Restoration Center, Kroll Fraud Solutions

Tags: consumer rights, EFTA, employees, FACTA, FCBA, FCRA, FDCPA, federal laws, identity theft, Red Flags Rule, training

Categories: Consumer ID Security, Data Security Industry, Data Security Issues.