Glossary - F

The purpose of this Act is to help consumers protect their credit identities and recover from identity theft. One of the key provisions of FACTA is consumers can request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies (Equifax, Experian, and TransUnion). www.AnnualCreditReport.com provides consumers with the secure means to request a free credit report.

A Federal law, established in 1971 and revised in 1997 that gives consumers the right to see their credit records and correct any mistakes. The FCRA regulates consumer credit reporting and related industries to ensure that consumer information is reported in an accurate, timely, and complete manner. FCRA was amended to address the sharing of consumer information with affiliates.

FDCPA is a set of United States statutes added as Title VIII of the Consumer Credit Protection Act. Its purpose is to ensure ethical practices in the collection of consumer debts, i.e. prohibits the use of abusive, unfair or deceptive practices, and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy. It is often used in conjunction with the Fair Credit Reporting Act.

A credit union chartered, examined, and supervised by the federal government through NCUA.

Federal law enacted in June 1934 that allowed the organization of federal credit unions and established methods for their chartering, supervision, and examination.

A government corporation that insures the deposits of all national and State banks that are members of the Federal Reserve System.

Federal agency responsible for the emergency evaluation and response to all disasters, natural and man-made. FEMA oversees the administration of flood insurance programs and the designation of certain areas as flood prone.

The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. You can divide the Federal Reserve's duties into four general areas:

• Conducting monetary policy
• Regulating banking institutions and protecting the credit rights of consumers
• Maintaining the stability of the financial system
• Providing financial services to the U.S. government

A charge or payment for products and services, a sum paid or charged for a privilege, for example, some financial institutions charge a monthly fee to have a savings account, or to receive a monthly paper statement.

Undertaking to act as executor, administrator, guardian, conservator, or trustee for a family trust, authorized trust, or testamentary trust, or receiver or trustee in bankruptcy.

The total cost of credit a member must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge.

A report providing a financial summary for a credit union, including assets, liabilities & capital, and income & expense. Users may request an FPR shortly after the credit union’s Call Report data has been submitted and validated by the regulator.

A real estate loan, which is in a first lien position, taking priority over all other liens. In case of a foreclosure, the first mortgage will be repaid before any other mortgages.

Loans that have a fixed rate of interest. Both the interest rate and the monthly payments (for principal and interest) stay the same during the life of the loan.

1) The amount of uncollected funds represented by checks in the possession of one bank but drawn on other credit unions and banks. 2) The time that elapses between the day a check is deposited and the day it is presented for payment to the financial institution on which it is drawn.

Flood insurance protects against water from an overflowing river or a hurricane's tidal surge and covers damage from water that builds up during storms.

A strip of land alongside a stream, river, or lake that is covered by water during a flood.

A temporary period of time during which a regular monthly mortgage payment is reduced or suspended.

The legal process by which a property may be sold and the proceeds of the sale applied to the mortgage debt. A foreclosure occurs when the loan becomes delinquent because payments have not been made or when the homeowner is in default for a reason other than the failure to make timely mortgage payments.

A fee assessed by your financial institution for making a transaction at another financial institution or bank's ATM.

A check on which the drawer's signature has been forged.

The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud.

One of several security measures placed on a credit report for identity theft management and prevention. It is a key provision of the Fair and Accurate Credit Transactions Act of 2003 allowing a consumer to place a fraud alert on their credit record. A consumer would use this option if they believe they were a victim of identity theft. The alert requires any creditor that is asked to extend credit to contact the consumer by phone and verify that the credit application was not made by an identity thief.

A Federal law that mandates that all the records created and kept by Federal agencies in the executive branch of government must be open for public inspection and copying. The only exceptions are those records that fall into one of nine exempted categories listed in the statute.

An account on which funds may not be withdrawn, and/or deposited, until a lien is satisfied and a court order or other legal process makes the account available for withdrawal (e.g., the account of a deceased person is frozen pending a court order distributing the funds to the new lawful owners). An account may also be frozen when there is a dispute regarding the true ownership of an account. The financial institution will freeze the account to preserve the existing funds until legal action can determine the lawful owner.

An entity, such as a credit union or bank, that provides information about a consumer to a credit reporting agency for inclusion in a consumer credit report.