10.01.08

Do Title Companies Need to Deal with the FACT Act?

Posted in Education, Land Title Technical Stuff, Privacy and Public Records, Regulation of Insurers and Banks at 1:07 pm by Jeanne

As of Nov. 1, 2008, compliance with the Fair and Accurate Credit Transactions Act (FACT Act) will be mandatory. The legislation requires that banks develop policies and procedures consistent with Customer Information Program rules to identify potential instances of identity theft. Creditors and financial institutions are obligated to implement a written program that would satisfy the requirements to detect, prevent and mitigate identity theft. They need to know the suppliers and vendors assisting them due due diligence to comply.  But how does that afect you as a small title company or abstractor?

It would be in your best interest to take a FACT Act course so that your company can say “Yes, we are familiar with and compliant with the FACT Act.”Question by Jeanne Johnson to Fact Act Consultant:

 

 

 

 

 

 

Does the FACT Act apply to Title Companies and Closers of real estate transactions that handle private information such as SSN’s, DOB, and other private information?

Response:
Title and real estate closing companies would only be directly covered by the Red Flag regulations if they also engaged in activities that would make them “creditors” under the rule.

They would be indirectly affected, however, if they are service providers for creditors since the creditors are required to make sure that their service providers have identity theft prevention policies to protect their customers’ information. They may well be asked for a contractual agreement to that effect. 

Melanie Berg
Wolters Kluwer Financial Services
Product Manager

6815 Saukview Drive
P.O. Box 1457
St. Cloud, MN 56303
1-800-397-2341 ext. 105732
320-240-5732 tel
320-469-6365 cel
melanie.berg@wolterskluwer.com
www.WoltersKluwerFS.com

 

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