MERit Credit Engine Adds Federal FACT Act Compliance

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Version 3 of the MERit Credit Engine has been released to assist technology departments in complying with the new Federal Fair and Accurate Credit Transaction Act law. The Credit Engine, handles the new FACTA alerts so that automated credit retrieval and scoring systems can respond properly as mandated under the law.

FACTA, the Fair and Accurate Credit Transactions Act requires changes to the way credit and scoring systems handle credit reports. MERit Credit Systems, Glendora, California has released Version 3 of the MERit Credit Engine, to assist technology departments in complying with the new federal law. The new release also provides coverage for Canada and Puerto Rico credit reports in addition to the U.S. Credit Bureaus.

To fight identity theft, the FACT Act requires a Consumer Fraud Alert or Military Active Duty Alert, to be shown on their credit report when requested by the consumer. Lenders are obligated to take action when they get such a message. The MERit Credit Engine, Version 3, handles the new alerts so that automated credit scoring and decision systems can react properly.

The FACT Act mandates address discrepancy indicators. A mismatch could be a clue to a case of identity theft, or that the wrong person’s credit report has been pulled. The MERit Credit Engine, Version 3, provides the address discrepancy indicator on credit reports, and “flags” the file for automated systems.

The new law requires notification if a consumer’s credit score has been lowered by excessive recent inquiries, resulting in the possibility of five reason codes instead of the four codes that legacy systems may be designed to handle. Another FACTA provision makes it necessary for credit bureaus to hide the source of medical debts. This affects credit scoring models and merged report logic as they attempt to distinguish one debt from another.

Version 3 has widened the MERit Credit Engine’s reach, including support for Equifax Canada’s North American Link (NAL) and TransUnion’s Canadian Region. Logic has been added to handle Puerto Rico names and addresses. Besides Microsoft SQL Server, database support now includes IBM DB2 version 8. The Credit Engine also provides two XML credit reporting open industry standards: HR-XML and MISMO.

MERit Credit Systems, Inc.( ) is a leading provider of server-based credit report retrieval software to access credit information directly from Equifax, Experian and Trans Union. Three bureau merged reports, and XML reports are also offered.


MERit Credit Systems

(626) 963-8313

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Herb Siedschlag
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