Loan Officer Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 415

What is the primary purpose of the FACT Act?

Regulate credit bureau reporting obligations

Protect consumers from identity theft

The primary purpose of the FACT Act, officially known as the Fair and Accurate Credit Transactions Act, is to protect consumers from identity theft. This act enhances consumer protection by requiring credit reporting agencies to provide consumers with free access to their credit reports annually, allowing them to monitor their credit information for errors or potential signs of identity theft. Additionally, the FACT Act implements procedures for consumers to dispute inaccuracies and mandates the creation of fraud alerts, making it easier for individuals to take action if they suspect they have been victims of identity theft.

While the act does address the accuracy and maintenance of consumer credit information, the strongest focus is on measures that empower consumers to safeguard their financial identity, hence the emphasis on protection from identity theft.

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Ensure accurate maintenance of consumer credit information

Prevent the funding of terrorist operations

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