One purpose of the Fair and Accurate Credit Transaction Act is to prevent which of the following?

The Fair and Accurate Credit Transactions Act (FACTA) was enacted primarily to enhance consumer protections regarding identity theft. One of its key provisions is the requirement that consumers have access to their credit reports, ensuring that they can monitor for inaccuracies or signs of identity theft. In addition, FACTA allows consumers to place fraud alerts on their credit files, which helps prevent new accounts from being opened in their name without their consent. Therefore, the act's strong focus on improving the accuracy of credit reporting and aiding consumers in protecting themselves from identity theft underscores why this option is identified as the correct response.

The other options, while significant in their own right, do not directly relate to the primary purposes of FACTA. Predatory lending refers to unfair lending practices, equity skimming deals with the exploitation of properties for profit by obtaining loans based on inflated appraisals, and discrimination in lending pertains to the unfair treatment of borrowers based on race, gender, or other characteristics. These issues are addressed under different laws and regulations, such as the Home Mortgage Disclosure Act (HMDA) and the Equal Credit Opportunity Act (ECOA), but they fall outside the specific scope of FACTA.