The United States Government has put into place several laws to
help protect you, your identity and your finances. We encourage you
to become familiar with the following:
USA Patriot Act
The Check Clearing for the 21st Century Act, or Check 21, is a
federal law that improves the efficiency and safety of the Nation's
check payment system. According to the Federal Reserve Board, Check
21 was designed to:
- Increase the speed of check clearing
- Lower check processing system clearing costs
- Reduce the vulnerability of the check processing system to
disruptions in air and ground transportation
The Check 21 law helps financial institutions like our Credit
Union to send checks electronically to each other by converting
paper checks to electronic files. The physical paper check becomes
an "electronic check" or a "substitute check." This electronic
check file contains an image of the front and back of the original
check and is suitable for automated processing the same as the
original. It qualifies as the legal equivalent of the original
How Check 21 affects you:
- Checks may clear in hours instead of days
- When viewing your cleared checks using Members 1st Online, you
may see a substitute check
The Fair And Accurate Credit Transaction Act
The Fair and Accurate Credit Transactions Act (often referred to
as the FACT Act, or FACTA) was signed into law in December 2003.
The FACT Act, a revision of the Fair Credit Reporting Act (FCRA),
requires each of the nationwide consumer reporting companies to
provide you with a free copy of your credit report, at your
request, once every 12 months through a central source.
In addition to free credit reports, the following are
also in effect:
- Uniform credit standards - These set clear rules on what credit
agencies can include in consumer credit reports.
- Safeguarding receipts - Retailers must hide credit and debit
card information on customer receipts. Only the last five digits of
a card number appear on receipts. All cash registers and
point-of-sale terminals must print safeguarded receipts.
- Opt-out rules - Consumers have the right to "opt-out" and block
solicitations from affiliates of companies that they do business
- Disclosing bad credit news - Financial institutions now have to
tell you if they report any negative information about you to the
credit bureaus. By law, we may report information about your
account to the credit bureaus including late or missed payments or
other defaults that affect any of your savings, checking or loan
accounts. This information could appear on your credit
A financial institutions must tell you if it grants you credit at
less favorable terms than those received by most other
- Reporting of false credit news - Any debt collector that learns
that information on a consumer's credit report is fraudulent must
inform the creditor that the information is false. No retailer or
creditor may report credit information to credit bureaus.
- More power for identity theft victims - Identity theft victims
that file police reports may block fraudulent information from
appearing on their credit reports. Identity theft victims are able
to obtain copies of business records that list fraudulent
transactions carried out by an identity thief.
- Enhanced fraud alerts - Once a credit bureau receives a fraud
alert, it must take steps to ensure that the consumer, not the
thief, will be granted credit in the future.
- Special alerts for the military - American military personnel
may place special alerts in their credit files while they are
serving overseas to help minimize their chances of becoming victims
of identity theft.
How Do I Order My Free Credit Report?
Who Can I Talk To If I Have Questions?
Loss Prevention & Security Services Department, (717)
795-5202, (800) 283-2328 ext. 5202 or email the