What is the primary purpose of FACTA?

• A. To increase consumer access to credit by relaxing credit checks.
• B. To require financial institutions to maintain written identity theft prevention programs.
• C. To standardize credit reporting across states.
• D. To restrict the use of credit scores in lending.

Answer: (B)

FACTA centers on protecting consumers from identity theft by requiring financial institutions and creditors to develop, implement, and maintain a written identity theft prevention program. This program is designed to detect, prevent, and mitigate identity theft in everyday operations and must be kept up to date with periodic reassessment. The emphasis is on proactive safeguards and a documented plan, not on loosening credit checks or standardizing reporting or restricting credit scores.