What is the purpose of the FACT Act?

The FACT Act, or the Fair and Accurate Credit Transactions Act, was enacted to enhance consumer protections in relation to credit reporting and to combat identity theft. Its primary purpose is to ensure that consumers have the right to access their credit reports, allowing them to verify the accuracy of the information and take steps to rectify any inaccuracies. This act also allows consumers to place fraud alerts on their credit files if they suspect they are victims of identity theft. It essentially sets forth measures to safeguard consumers from fraudulent activities, thus addressing the critical need for consumer protection in the realm of financial activities.

Other options, while they pertain to various financial aspects, do not align with the explicit purpose of the FACT Act. For example, increasing interest rates on loans, regulating bank fees, or extending credit availability do not capture the essence of the consumer protection focus that the FACT Act embodies.