[Federal Register: November 30, 2004 (Volume 69, Number 229)]
[Rules and Regulations]
[Page 69775-69804]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30no04-17]
[[Page 69775]]
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Part V
Federal Trade Commission
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16 CFR Parts 601 and 698
Summaries of Rights and Notices of Duties Under the Fair Credit
Reporting Act; Final Rule
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FEDERAL TRADE COMMISSION
16 CFR Parts 601 and 698
RIN 3084-AA94
Summaries of Rights and Notices of Duties Under the Fair Credit
Reporting Act
AGENCY: Federal Trade Commission.
ACTION: Final Guidance on Model Disclosures.
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SUMMARY: The Federal Trade Commission is publishing in final form a
number of documents that it is required to issue by the Fair Credit
Reporting Act (FCRA), which was significantly amended by the recently
enacted Fair and Accurate Credit Transactions Act. These are: A summary
of the rights under the FCRA of victims of identity theft; a general
summary of consumer rights under the FCRA; a notice of the duties of
persons that furnish information to consumer reporting agencies; and a
notice of the duties of users of information obtained from consumer
reporting agencies. These documents will be distributed by consumer
reporting agencies and others to consumers and to businesses that
either use information obtained from consumer reporting agencies or
furnish information to consumer reporting agencies.
DATES: Effective Date: January 31, 2005.
FOR FURTHER INFORMATION CONTACT: For the summary of identity theft
rights, contact Monique Einhorn, Attorney, Division of Planning and
Information, Federal Trade Commission, 600 Pennsylvania Ave. NW.,
Washington, DC 20580, 202-326-3228; for the general summary of consumer
rights and the furnisher and user notices, contact William Haynes,
Attorney, Division of Financial Practices, Federal Trade Commission,
600 Pennsylvania Ave. NW., Washington, DC 20580, 202-326-3224.
SUPPLEMENTARY INFORMATION:
I. Introduction
The Commission is issuing in final form four documents that
describe rights and duties under the Fair Credit Reporting Act (FCRA),
15 U.S.C. 1681 et seq. The Commission is issuing these documents
because of changes to the FCRA made by the Fair and Accurate Credit
Transactions Act of 2003 (FACT Act or Act), Public Law 108-159, 117
Stat. 1952, which was signed into law on December 4, 2003.
The FACT Act amendments directed the Commission to issue, for the
first time, a summary of the rights of identity theft victims. The
changes made to the FCRA by the FACT Act also rendered obsolete three
documents that the Commission issued in 1997: A general summary of the
rights of consumers under the FCRA; a notice of the duties under the
FCRA of persons that furnish information to consumer reporting
agencies; and a notice of the duties under the FCRA of persons that use
information obtained from consumer reporting agencies. 62 FR 35586
(1997).
The Commission published proposed versions of all four documents
for public comment on July 16, 2004. 69 FR 42616 (2004). The Commission
has received numerous comments from consumers and from the following:
organizations representing consumer interests (``consumer group
commenters''); banks, credit unions, and associations of banks
(``finance commenters''); business entities and groups (``business
commenters''); and consumer reporting industry members and associations
(``industry commenters'').\1\ Because many commenters in a particular
group raised the same or similar issues, we will refer in this
discussion to the commenters by group (e.g., ``finance commenters,''
``industry commenters'') unless it is useful to identify a commenter by
name. Persons interested in reviewing the comments may go to the
Commission's Web site (http://www.ftc.gov/os/comments/FACTA-summaries/index.htm
).
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\1\ Among the commenters were the following: consumer
commenters--the Consumer Federation of America, Consumers Union, the
Electronic Privacy Information Center, the Identity Theft Resource
Center, the National Association of Consumer Advocates, the National
Consumer Law Center, the National Council of La Raza, the Privacy
Rights Clearinghouse, and the U.S. Public Interest Research Group;
finance commenters--Independent Community Bankers of America, the
American Financial Services Association, MBNA, the Mortgage Bankers
Association, Visa, MasterCard International, Wells Fargo, the
American Bankers Association, America's Community Bankers; business
commenters--ACA International, the Coalition to Implement the FACT
Act (which includes banks, insurance companies, the National Retail
Federation, Fannie Mae, and Fair Isaac & Co.); industry commenters--
the Consumer Data Industry Association, Equifax, Experian, Trans
Union, and USIS Commercial Services, Inc.
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II. The Summary of Identity Theft Rights
A. Background
Section 609(d) of the FCRA requires the Commission, in consultation
with the Federal banking agencies \2\ and the National Credit Union
Administration, to prepare a model summary of the rights of consumers
``with respect to the procedures for remedying the effects of fraud or
identity theft.'' This model summary must be distributed by consumer
reporting agencies to any consumer who ``contacts a consumer reporting
agency and expresses a belief that the consumer is a victim of fraud or
identity theft.'' Section 609(d)(2) provides that consumer reporting
agencies' obligation to distribute this summary begins 60 days after
the date on which the model summary of rights is prescribed in final
form by the Commission.
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\2\ The Federal banking agencies are: the Federal Reserve Board
of Governors, the Office of the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, and the Office of Thrift
Supervision.
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The proposed summary discussed the major rights of identity theft
victims under the FCRA to remedy the effects of fraud or identity
theft. These include: the right to obtain free file disclosures, the
right to file fraud alerts, the right to obtain documents or
information relating to transactions involving the consumers' personal
information, the right to block the reporting of information by
consumer reporting agencies resulting from identity theft, and the
right to prevent persons who furnish information to consumer reporting
agencies from reporting information that is the result of identity
theft. In preparing both the proposed model summary and the final one,
the Commission consulted with the federal banking agencies and the
National Credit Union Administration, in accordance with the
requirements of Section 609(d).
B. General Issues Raised by Commenters
1. The Distribution of a ``Substantially Similar'' Summary
Section 609(d) requires the Commission to issue a ``model'' summary
and requires the consumer reporting agencies to distribute a summary
containing ``all of the information required by the Commission.'' In
the July 16, 2004, Federal Register notice the Commission indicated
that summaries issued by consumer reporting agencies would be compliant
if they displayed ``the Commission-mandated information `clearly and
prominently' in a form substantially similar to the Commission's model
summary.'' 69 FR 42616, 42617.
Consumer group commenters expressed great concern regarding the
apparent flexibility permitted under a ``substantially similar''
approach. They suggested that even slight deviations in wording or
placement of the rights within a document could allow the meaning of
important rights to lose their prominence or lack the required context
[[Page 69777]]
to make them most apparent to the consumer.
Section 609(d)(2) requires that the identity theft summary provided
to consumers by the consumer reporting agencies must contain all of the
information contained in the Commission's prescribed summary. Pursuant
to this statutory direction, consumer reporting agencies may not
eliminate any part of the summary of identity theft rights. By
specifying that summaries must be ``substantially similar'' to the
Commission's prescribed form, the Commission intends only that consumer
reporting agencies have the leeway to make minor changes without being
in violation of the FCRA. The Commission has added a definition of
``substantially similar'' to 16 CFR 698.3.\3\
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\3\ The Commission has defined ``substantially similar'' to mean
``that all information in the Commission's prescribed model is
included in the document that is distributed, and that the document
distributed is formatted in a way consistent with the format
prescribed by the Commission. The document that is distributed shall
not include anything that interferes with, detracts from, or
otherwise undermines the information contained in the Commission's
prescribed model.'' 16 CFR 698.3.
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2. Understandability and Outreach
Consumer group commenters suggested that for some consumers
(especially those for whom English is not their primary language) the
information and procedures discussed in the model summary may be
difficult to comprehend. These commenters also pointed to the need for
Commission outreach efforts to educate consumers.
The Commission has tried, as much as possible, to use plain
language in the summary but agrees that the notices need to be
supplemented by outreach efforts and intends to do so. In addition, to
better serve that portion of the population that is Spanish-speaking,
the Commission has added a Spanish language statement at the top of the
summary informing Spanish-speaking consumers where they can obtain more
information in Spanish. In addition, the Commission will provide a
Spanish translation of the summary, which will be available at the
Commission's identity theft Web site, along with other information in
Spanish. The Commission has added language to Appendix E of 16 CFR part
698 stating that accurate translations of the identity theft summary
for use in providing the summary to speakers of Spanish or another
language will be compliant with the disclosure requirement. The
Commission will also implement a media and education campaign to inform
the public how to prevent identity theft, as required by Section 151(b)
of the FACT Act.
C. Specific Issues Raised by Commenters
1. Introductory Paragraph
In the introduction to the proposed summary, the Commission
included contact information referencing only the Commission's identity
theft Web site address. In response to suggestions from commenters, a
Commission mailing address has been added to the introduction of the
final summary for consumers who prefer to contact the agency via postal
mail, or who do not have Web access. In response to industry, business,
and finance commenters, and to improve clarity while maintaining
brevity, the Commission also has shortened the general discussion of
the FCRA in the introduction. Finally, to reflect changes in the
definition of ``identity theft'' made by the Commission's final
Identity Theft Rule, the term ``lawful'' has been stricken from the
introductory paragraph. See 69 FR 63922, 63924-25.
2. Fraud Alerts
The first section of the final summary (``You have the right to ask
that nationwide consumer reporting agencies place ``fraud alerts'' in
your file''), discusses the specific procedures that apply when fraud
alerts are placed in consumers' files.\4\ The language of the
Commission's proposal raised a few issues for commenters. One finance
commenter suggested that the discussion be clarified to make clear that
consumers may request only the initial fraud alert by telephone from
the nationwide consumer reporting agencies because the extended alert
requires submission of an identity theft report, and thus cannot be
requested by telephone. The Commission has declined to adopt this
suggestion. Although different procedures may have to be implemented by
the nationwide consumer reporting agencies to accommodate the identity
theft report requirement for the extended alert, Section 605A(d)
requires ``[e]ach consumer reporting agency described in Section
603(p)'' to establish ``procedures that allow consumers and active duty
military consumers to request initial, extended, or active duty alerts
* * * in a simple and easy manner, including by telephone.''
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\4\ As proposed in the July 16 Federal Register notice, this was
the second section of the summary. To improve the clarity of the
summary, however, the Commission has moved this discussion to the
first section of the final summary, and has consolidated the
discussion of free file disclosures in the second section.
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The Commission has, however, clarified the discussion of fraud
alerts to make clear that consumers must contact the ``nationwide
consumer reporting agencies'' to request fraud alerts and that the
initial alert stays in the consumer's file for ``at least'' 90 days.
The summary also contains a fuller explanation of the identity theft
report requirement and refers consumers to the Commission's identity
theft Website for more detailed information.
The Commission has revised the summary to include placeholders
(``1-800-XXX-XXXX'') for nationwide consumer reporting agencies'' toll-
free telephone numbers, rather than the current numbers used by those
agencies. Although the summary must include these toll-free telephone
numbers, they are subject to change, and the Commission thought it
advisable to include the placeholders rather than the actual numbers to
clarify that the summary must include up-to-date telephone numbers.\5\
The Commission notes that the names, Web site addresses, number, and
identity of the nationwide consumer reporting agencies also are subject
to change over time. To remain in compliance, the summary must
accurately reflect changes to information that may change over time.
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\5\ This same approach is taken in the general summary of
consumer rights with respect to the nationwide consumer reporting
agencies' toll-free telephone number for accepting consumers'
prescreen opt-out elections under FCRA Section 604(e).
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3. Free File Disclosures from Consumer Reporting Agencies
The discussion of free file disclosures (``You have the right to
free copies of the information in your file'') has been modified in
response to industry comments that the use of the term ``consumer
report'' should be replaced by the term ``file disclosure'' to be more
technically precise.
In addition, industry and business commenters and the banking
agencies that the Commission consulted suggested that the discussion of
free file disclosures in the proposed summary was confusing. In order
to resolve any confusion, the Commission has consolidated the
discussion of free file disclosures in the second section of the
summary: the new Section 605A rights to free file disclosures and the
preexisting Section 612(c)(3) right to a free file disclosure now are
discussed together.
The Commission has also clarified the discussion to make clear that
an extended alert at a nationwide
[[Page 69778]]
consumer reporting agency entitles the consumer to two free file
disclosures in a 12-month period ``following the placing of the
alert.'' Finally, this section has also been modified to make clear
that consumers have the ability to obtain additional free file
disclosures under other provisions of the FCRA. Consumers are directed
to http://www.ftc.gov/credit for more detailed information.
4. Obtaining Applications and Business Records Resulting From Identity
Theft
The Commission has made a number of modifications to section three
of the summary (``You have the right to obtain documents relating to
fraudulent transactions made or accounts opened using your personal
information''). In response to industry, finance, and business
commenters, the Commission has added language to this section that
tracks the requirements of Section 609(e) and clarifies that the
consumer's request for documents should be in writing, that a business
may specify an address for consumers to submit their written requests,
and that a business, under certain circumstances, may refuse to provide
this material.\6\
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\6\ FCRA Section 609(e)(5) provides that a business may decline
to provide the requested information if, among other things, it does
not have ``a high degree of confidence'' that it knows the
requester's identity, the request is based on a ``misrepresentation
of fact'' by the requester, or the information requested pertains to
a person's visit to a Web site or online service.
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5. Blocking Information Relating to Identity Theft in Consumers' Files
The Commission made one substantive change to the fifth section
(``If you believe information in your file results from identity theft,
you have the right to ask that a consumer reporting agency block that
information from your file''). In response to an industry commenter,
the Commission has added language to make clear that the block covers
any information (not just accounts) in the consumer's file, if the
information results from identity theft. This same industry commenter
suggested that the Commission expand the discussion of the identity
theft report in this section. The Commission has added information
about the identity theft report earlier in the summary in the
discussion of fraud alerts where the term is first introduced, and has
italicized the term ``identity theft report'' throughout the summary
for readers'' ease of reference and to make clear that it is a term of
art. See supra, II.C.2. Because ``identity theft report'' is a
complicated definition subject to Commission rulemaking, consumers are
further referred to the FTC's Web site for more information.
6. Preventing Businesses From Furnishing Information Resulting From
Identity Theft
In response to business and finance commenters, the Commission has
added a statement to the sixth section (``You also may prevent
businesses from reporting information about you to consumer reporting
agencies if you believe the information is a result of identity
theft'') explaining that consumers must identify for the furnisher the
specific information it should cease reporting.
7. State Laws
Many states have enacted laws relating to identity theft. In the
Commission's identity theft publications and in its public outreach
efforts, the Commission informs consumers of this fact and suggests
that consumers contact the appropriate state and local agencies for
more information. Consumer group commenters suggested that the
Commission include a statement in the model summary informing consumers
that they may have additional rights related to identity theft under
state law. The Commission agrees. Accordingly, in the penultimate
paragraph of the summary, there is now the statement: ``You may have
additional rights under state law. For more information, contact your
local consumer protection agency or your state attorney general.''
8. Concluding Paragraphs
In the proposed summary, the Commission included a final section
cross-referencing the general FCRA consumer rights. The Commission
added this section to provide identity theft victims notice of the
broader range of rights provided to them by the FCRA. Consumer group
commenters commended the Commission for including a cross-reference to
general FCRA rights in the identity theft summary and for cross-
referencing identity theft rights in the general summary. Industry and
business commenters, however, suggested that the cross-reference to
other FCRA rights went beyond the scope of Section 609(d) in discussing
more rights than just those that address procedures for remedying fraud
or identity theft. The Commission agrees with consumer group commenters
that a cross-reference is necessary to ensure that consumers are aware
of their full range of rights, and further believes that these more
general rights may also be relevant to identity theft victims. Thus,
this cross-reference has been retained, but in the final summary the
discussion has been shortened. As proposed, the cross-reference briefly
enumerated five of consumers' specific rights under the FCRA; it now
reads simply: ``In addition to the new rights and procedures to help
consumers deal with the effects of identity theft, the FCRA has many
other important consumer protections. They are described in more detail
at http://www.ftc.gov/credit.'' Identity theft victims who need more
information on their general rights under the FCRA will be able to
obtain it on the Web site. Moreover, identity theft victims who receive
a file disclosure from a consumer reporting agency--e.g., after placing
a fraud alert or requesting a free file disclosure under FCRA Section
612(c)(3)--will receive a copy of the general summary of consumer
rights that describes these provisions in more detail.
III. The General Summary of Consumer Rights
A. Background
Section 609(c) of the FCRA requires the Commission to issue a
general summary of consumer rights. This provision was added to the
FCRA in the 1996 amendments. After a period for public comment, the
Commission issued the general summary in 1997 as a two-page document.
62 FR 35586 (1997).
Section 211(c) of the FACT Act amended Section 609(c) of the FCRA
to require the Commission to include in the summary information about
consumers' new rights. Section 211(c) also eliminated the requirement
that the summary include a number of disclosures such as a list of
federal agencies that enforce the FCRA, the statement that the consumer
may have additional rights under state law, and the statement that
accurate derogatory information does not have to be removed from
reports unless it is outdated or cannot be verified. (Consumer
reporting agencies now have an independent obligation to provide this
information.) Given these changes, the existing general summary is
outdated.
Accordingly, the Commission published for comment a substantially
revised general summary. The Commission elected to include in the
proposed summary the list of federal agencies and the other items of
information that are no longer mandated because it believes that this
information is helpful to consumers and should be available in one
place. In general, industry, finance, and consumer group
[[Page 69779]]
commenters support the Commission's decision to include these items of
information. A number of industry and finance commenters also state
that the current version of the summary, which the Commission largely
followed in crafting its proposed new general summary, has worked well.
B. General Issues Raised by Commenters
1. FACT Act Mandates
The FACT Act requires the Commission and the banking and credit
union regulators to issue rules to implement many of its provisions.
Most of these rules have not yet been issued or will not be fully
implemented until next year. A number of the rules will provide
significant rights to consumers, such as the right to obtain a free
file disclosure every twelve months, the right to receive a notice when
creditors make decisions based on a risk-based pricing model, and the
right to file a dispute directly with a business about information the
business has furnished to a consumer reporting agency. The Commission
did not include a discussion of these prospective rights in the
proposed general summary. The proposed summary, instead, referred
consumers to the Commission's Web site for more information.
Consumer group commenters and some finance commenters questioned
the Commission's decision not to include a discussion of the
prospective rights. The Commission believes that it is difficult to
explain these rights briefly and coherently, particularly since the
rules implementing these rights are not yet final. Although the
Commission has made some minor modifications to the general summary in
response to the concerns raised by commenters--including adding a
reference to ``additional rights'' at the beginning of the summary that
refers consumers to the Commission's Web site--the Commission has
decided not to add a detailed discussion of the prospective rights but
plans to revise the general summary to reflect these new rights once
they are in effect.
2. Length of Consumer Summary and Reference to Web Site
In 1997, the Commission elected to limit the length of the general
summary of consumer rights to two pages because a briefer and more
pointed summary is more useful to, and more easily understood by, most
consumers. In addition, because the two-page summary can be printed on
a single sheet of standard-size paper when distributed in paper form,
it has helped to control the cost of distribution. Where consumers need
more detailed information about specific rights, the Commission has
always provided additional resources.
The Commission took the same approach with the proposed revised
general summary. A number of industry and finance commenters report
that this approach has worked well. Commenters representing consumer
groups, however, believe that the proposed summary is dense, lacks
detailed information about some rights, and lacks extensive guidance as
to how consumers may exercise their rights. These commenters also
expressed concern that the reference to the Commission's Web site for
more information would be a problem for those consumers without ready
access to the Internet.
The Commission will mail all of its relevant credit-related
publications to any consumer upon request. The Commission has modified
the summary to explain how consumers without access to the Internet may
request this information. In addition, the Commission intends to revise
the summary once the new FACT Act regulations are in place, and will
revisit the length of the consumer summary at that time.
3. Understandability of the General Summary
Although some commenters--particularly business, industry, and
finance commenters--believed that the format of the proposed general
summary is useful and understandable, the commenters representing
consumer groups raised questions about its understandability. Some of
these concerns may be the result of the fact that the Federal Register
did not publish the general summary in the format approved by the
Commission. This notice contains the summary formatted correctly.
Although the Commission has tried to use plain language and to
express the legal concepts embodied in the FCRA as simply as possible,
the Commission intends to publish on its Website an expanded version of
the summary of rights that will give more information to consumers. To
better serve Spanish-speaking consumers, the Commission's Web site will
also include a Spanish translation of the summary, along with other
Spanish-language materials, such as an expanded discussion of consumer
rights under the FCRA. A statement now appears in Spanish at the top of
the summary directing consumers to the FTC to obtain Spanish language
information. In addition, the Commission encourages those businesses
serving Spanish-speaking consumers to provide the summary in Spanish.
Accordingly, the Commission has added language to Appendix F of 16 CFR
part 698 stating that accurate translations of the general summary for
use in providing the summary to consumers who use Spanish or another
language will comply with the disclosure requirement.
4. The Distribution of a ``Substantially Similar'' Summary
As added to the FCRA in the 1996 amendments, Section 609(c)
required the Commission to ``prescribe'' the form and content of the
general summary and stated that consumer reporting agencies were in
compliance if they provided summaries ``substantially similar'' to the
Commission's model. As amended by the FACT Act, Section 609(c) requires
the Commission to issue a ``model'' summary and requires consumer
reporting agencies to distribute the Commission's summary.
Although there is no ``substantially similar'' language in Section
609(c) as amended, the Commission included in the Federal Register
notice of July 16 a statement that it would consider ``substantially
similar'' summaries to be compliant. The Commission interprets the term
``model'' to mean a notice that need not be adhered to in every detail,
and does not believe that consumer reporting agencies should be subject
to litigation because of minor variations from the model.
Consumer group commenters expressed concern that the inclusion of
the ``substantially similar'' language may create a loophole by
permitting consumer reporting agencies to remove references to specific
rights or to modify the summary in such a way that important rights may
be buried in fine print. Such changes would not be acceptable. All of
the information in the general summary must be included in order for
any summary to comply with the law, and consumer reporting agencies do
not have the authority to eliminate or to substantially alter any part
of the general summary. By specifying that general summaries must be
issued in a form ``substantially similar'' to the Commission's
prescribed form, the Commission intends only that consumer reporting
agencies have the leeway to make minor changes without being in
violation of the FCRA. The Commission has added a definition of
``substantially similar'' to 16 CFR 698.3.
The Commission, has, however, decided to adopt the suggestion of an
industry commenter that consumer reporting agencies be permitted to
disclose the list of federal regulators
[[Page 69780]]
separately if they do so in a ``clear and conspicuous'' way. This
approach may benefit consumers by, for example, permitting the general
summary to be printed in larger type. The Commission has added a
discussion to Appendix F to 16 CFR part 698 stating that the list of
federal regulators may be disclosed separately.
5. State Law Rights and Enforcement
Another issue raised by commenters concerns the statement in the
general summary that consumers may have additional rights under state
law. Consumer group commenters expressed the belief that this statement
should be emphasized, while a number of industry and finance commenters
took the position that the rights should be downplayed because Section
625 of the FCRA preempts many state laws.
The Commission believes that the additional rights that consumers
have under state law and state enforcement of the FCRA are important.
Section 609(c) specifically requires that consumers be informed that
they have additional rights under state law and that they may wish to
contact their state or local consumer protection agency or their state
attorney general. Moreover, where state laws provide additional
protections to consumers, these may be significant. The Commission has
revised the summary by adding (before the box on the second page
containing information about federal enforcement agencies) in bold type
the following: ``States may enforce the FCRA, and many states have
their own consumer reporting laws. In some cases, you may have more
rights under state law. For more information, contact your state or
local consumer protection agency or your state attorney general.''
Industry and finance commenters also expressed the belief that the
Commission should delete the statement in the proposed summary that
consumers may sue in state court as well as federal court because of
the fact that state court lawsuits may be transferred to the federal
court system. The Commission has not accepted this suggestion. The FCRA
specifically permits lawsuits in any court of competent jurisdiction,
including state courts.
6. Outreach and Education Efforts
A number of consumer group and finance commenters raised the issue
that a stand-alone summary of rights will not be particularly helpful
to many consumers who find the legal concepts embodied in the FCRA
difficult to understand, who lack basic financial literacy, or who find
it intimidating to deal with consumer reporting agencies. The
Commission recognizes that education and outreach efforts are needed to
enable consumers to understand fully their rights under the FCRA.
Section 513 of the FACT Act itself includes the Financial Literacy and
Education Improvement Act, which establishes the Financial Literacy and
Education Commission (``FLEC''). A Commission representative serves on
the FLEC, and the Commission will work with the FLEC to educate
consumers.
In addition, the Commission is taking a number of steps to educate
and to help consumers. The Commission's Web site has been reorganized
so that consumers can easily reach credit material (http://www.ftc.gov/credit
). Information on how to contact consumer reporting agencies and
state agencies will be on the Web site, and many materials will be
translated into Spanish. The Commission also intends to conduct
outreach to educate the business community about the FCRA.
C. Specific Issues Raised by Commenters
A number of commenters suggested that the summary should be more
technically precise, and, in response, the final summary uses the term
``file disclosure'' in place of ``consumer report'' when describing the
right of consumers to see the information about them in the files of
consumer reporting agencies. In addition, the introductory paragraph to
the summary has been modified to incorporate the suggestion that the
summary refer to ``specialty'' agencies instead of ``specialized''
agencies and to explain more fully what specialty agencies are.
In response to the issues raised by consumer group commenters,
there is now a statement in Spanish at the very top of the summary
directing Spanish-speaking consumers to a Spanish version of the
summary. In addition, because the model does not summarize every right
afforded to consumers by the FCRA, the revised summary states that
consumers' ``major rights'' are contained in the summary and that
``additional rights'' are available on the Web site or by writing to
the Commission. Finally, the sentence in the introductory paragraph
stating that consumers may have additional rights under state law has
been moved to the end of the summary where there is now a more detailed
discussion of state enforcement.
In the first substantive paragraph (``You must be told if
information in your file has been used against you''), the reference to
``consumer reporting agency'' has been modified to more fully explain
that credit reports or other consumer reports may be the basis for
adverse actions.
The heading of the second paragraph (``You have the right to know
what is in your file'') has been modified to aid in comprehension. In
addition, a number of commenters felt that the language of this
paragraph was too imprecise. It has been modified to express precisely
the circumstances in which a consumer may obtain a disclosure of the
information in his or her file, and the various rights to free file
disclosures are now expressed as separate bulleted paragraphs. The
discussion of free file disclosures was modified to state that file
disclosures under the Commission's Free Annual File Disclosures Rule,
16 CFR part 610, will not be available for all consumers until
September of 2005.
The heading and text of the third paragraph (``You have the right
to ask for a credit score'') have also been modified to be more
precise. Business, industry, and finance commenters did not like the
use of the term ``your credit score'' given the fact that consumers are
entitled under Section 609(f) of the FCRA only to an educational score,
which may not be the same as the score provided to any particular
creditor or other user. The Commission also modified the last sentence
to make clear that mortgage lenders (and not consumer reporting
agencies) will give consumers credit score information in some
circumstances.
The fourth paragraph (``You have the right to dispute incomplete or
inaccurate information'') has been expanded to make clear that
consumers may dispute both ``incomplete'' and ``inaccurate''
information, and the heading has been revised to aid in comprehension.
The fifth paragraph (``Consumer reporting agencies must correct or
delete inaccurate, incomplete, or unverifiable information'') has been
similarly modified. One industry commenter, the Consumer Data Industry
Association, suggested adding to this paragraph a discussion of the
fact that information removed because it cannot be verified may be
reinserted if the furnisher certifies to the consumer reporting agency
that the information is correct. Because of its interest in keeping the
general summary to two pages, the Commission has decided not to add
this reinsertion information to the general summary at this time, but
this will be discussed on the Commission's Web site.
The headings of the sixth (``Consumer reporting agencies may not
report outdated negative information'') and seventh (``Access to your
file is
[[Page 69781]]
limited'') paragraphs have been modified to enhance readability, but no
substantive changes have been made. An industry commenter suggested
that the Commission include in the discussion of access in the seventh
paragraph a statement that consumers' rights are limited in certain
employee misconduct investigations. Because the exemption in Section
603(x) is narrow and will affect consumers only in limited
circumstances, the Commission has determined that it will not address
this matter in the general summary, but will make that exception clear
in its general consumer education efforts.
The heading of the eighth paragraph (``You must give your consent
for reports to be provided to employers'') has been revised, and the
paragraph now makes clear that consent is to be given to the employer.
A statement has been added at the end of this paragraph pointing out
the exception to the requirement for ``written'' permission that
applies to the trucking industry. In addition, the reference to
``blanket'' permission has been removed, because the Commission
believes that this is a complicated concept to explain to consumers in
a concise manner. Additional information is available in the
Commission's consumer education publications, and the issue continues
to be discussed in the notice of user duties.
The heading of the ninth paragraph (``You may limit `prescreened'
offers of credit and insurance you get based on information in your
credit report'') has been modified to improve readability, and the
paragraph now makes clear that the opt-out number in the paragraph is
only for ``nationwide'' agencies. The tenth paragraph (``You may seek
damages from violators'') also has been modified. A number of finance
and industry commenters objected to the Commission's proposed language
because furnishers and users have limited liability to consumers under
the FCRA. The Commission has adopted wording proposed by commenter
American Banking Association: ``If a consumer reporting agency, or, in
some cases, a user of consumer reports or furnisher of information to a
consumer reporting agency violates the FCRA, you may be able to sue in
state or federal court.'' The Commission believes that this accurately
reflects the statute. As discussed above, the Commission has not
adopted the suggestion of a number of industry and finance commenters
that the reference in this paragraph to lawsuits in state courts be
eliminated.
The discussion of identity theft and active duty military rights in
what is now the eleventh paragraph has been shortened to save space.
Consumers are referred to the Commission's Web site for more
information. Finally, at the bottom of the second page of the summary,
the Commission has made significant changes. In response to consumer
group commenters who expressed concern that the proposed summary did
not adequately alert consumers to rights that they have under state
laws, the Commission moved the statement concerning state law rights
from the introductory paragraph to this location, added a reference to
the fact that states may enforce the FCRA, and now directs consumers to
contact their state attorney general or regulator as well as the
appropriate federal regulator if they believe law violations have
occurred.
IV. Furnisher and User Notices
A. Background
Section 607(d)(1) of the FCRA, which was added in the 1996
amendments to the FCRA, requires consumer reporting agencies to
distribute to each person that regularly furnishes information to the
agency or that receives information from the agency a notice of the
person's responsibilities under the FCRA. The statute requires the
Commission to ``prescribe'' the content of model notices that can be
used to comply with Section 607(d)(1). In 1997, the Commission issued
both the notice explaining the duties of persons furnishing information
to consumer reporting agencies (``furnisher notice'') and the notice
explaining the duties of persons using information obtained from
consumer reporting agencies (``user notice''). 62 FR 35586 (1997).
The FACT Act did not amend Section 607(d), but it did alter in
significant ways the duties of furnishers and users. As a result, the
Commission published revised furnisher and user notices for comment in
the Federal Register on July 16. 69 FR 42616 (2004). The comments
received by the Commission raised a number of major issues that are
discussed below.
B. General Issues Raised by Commenters
1. Distribution of Furnisher and User Notices
The July 16 Federal Register notice set forth the Commission's
initial position that the revisions to the FCRA by the FACT Act are so
significant that consumer reporting agencies must distribute new
furnisher and user notices. An industry commenter and some finance
commenters objected to this position, primarily citing the cost of
providing revised notices.
Consumer reporting agencies are required under Section 607(d) to
provide to furnishers and users a complete description of their duties
under the FCRA. Section 607(d)(2) provides that they may comply with
this obligation by providing furnishers and users with a notice
``substantially similar'' to the model prescribed by the Commission.\7\
That is, the Commission's notices are a ``safe harbor.'' The Commission
is now substantially changing its model notices, and it believes that
consumer reporting agencies wishing to avail themselves of the
statute's safe harbor should provide the revised notices to users and
furnishers.
---------------------------------------------------------------------------
\7\ The Commission has added a definition of ``substantially
similar'' to 16 CFR 698.3.
---------------------------------------------------------------------------
The FCRA, as amended by the FACT Act, contains substantial new
obligations that have not yet been implemented by rules of the
Commission and other agencies. As a result, the Commission intends to
revise the model notices again when the relevant rulemaking proceedings
are complete. Until that time, the Commission believes that consumer
reporting agencies may take advantage of the Section 607(d)(2) safe
harbor by delivering the revised ``interim'' notices only to those new
users and furnishers who have never before received the notices. Of
course, all furnishers and users must comply with every new duty as it
becomes effective, without regard to whether they have been notified of
the duty by a consumer reporting agency.
2. Information on Rules That Are Not Yet Complete
At the suggestion of business, finance, and industry commenters,
the Commission has added a box at the top of both notices that alerts
users and furnishers to the fact that some of the regulations required
by the FACT Act and discussed in the notice were not issued when the
notice was prescribed. Recipients of the notices are directed to the
Commission's Web site, where the Commission maintains updated
information about the status of the regulations. Furnishers and users
regulated by other entities are directed to contact those entities for
information about any relevant regulations implementing the FACT Act.
3. Additional Resources
At the suggestion of an industry commenter and for the convenience
of users and furnishers, the Commission has added to both notices (1) a
list of the United States Code citations that correspond to the FCRA
sections discussed in the notice, and (2) a
[[Page 69782]]
reference to the Commission's Web site for more information about the
FCRA, including publications for businesses.
B. Specific Issues Raised by Commenters
The Commission has made a number of other additions and revisions
to the furnisher and user notices to reflect suggestions made by
commenters. The following discussion describes the significant changes
made to the proposed notices.
1. Furnisher Notice
A number of business, finance, and industry commenters suggested
that the Commission revise the introductory paragraph of the furnisher
notice to identify the specific states (California and Massachusetts)
whose ``furnisher'' laws are not preempted by the FCRA. The Commission
has not made this change because the preemption provision is unchanged
since 1997 and the language in the introductory paragraph has not
caused confusion.
In the fourth section (``Duties After Notice of Dispute from
Consumer''), the Commission, at the suggestion of several industry and
finance commenters, has added a discussion of Section 623(a)(1)(B),
which describes the general ``accuracy'' duties that furnishers have
when consumers notify them of inaccurate information. ACA
International, a major association of debt collectors, requested in its
comments that the Commission include a statement that contacts with
consumers by debt collectors undertaken in compliance with Section
623(a)(8) (the provision governing consumer disputes made directly to
information furnishers) are not communications or attempts to collect
debts under the Fair Debt Collection Practices Act, 15 U.S.C. 1601 et
seq. ACA International is concerned that debt collectors may not be
registered to do business in states where consumers who dispute
information are located, and that the contacts involved in handling
these disputes will trigger state debt collection laws. Because
furnishers' new obligations to accept consumer disputes are dependent
on rules that have not yet been drafted, it would be premature to
address this issue.
The fifth section (``Duties After Notice of Dispute From Consumer
Reporting Agency'') has been slightly modified to reflect the
statutorily mandated timeline. The seventh section (``Duty to Report
Dates of Delinquencies''), which previously referred to ``debt
collectors,'' now makes clear that ``any person'' who acquires or is
collecting a delinquent debt must comply with the reporting
requirements of Section 623(a)(5). This section also has been revised
to more closely track the statutory language.
The eighth section (``Duties of Financial Institutions When
Reporting Negative Information'') has been revised to make clear that
the provision only applies to persons that furnish information to
``nationwide'' consumer reporting agencies as defined in Section
603(p). The reference to the Federal Reserve Board regulations has been
revised to reflect the fact that the Board has issued two model
disclosures.
The Commission has revised the tenth section (``Duties When ID
Theft Occurs'') to include a discussion of Section 623(a)(2), which
requires each furnisher to notify all agencies to which it reports when
it learns it has furnished inaccurate information. At the suggestion of
a number of finance and industry commenters, the last sentence in this
paragraph also has been modified to make clear that the prohibition
upon selling debts that are linked to identity theft does not apply in
certain limited circumstances involving repurchase, securitization, and
transfers as the result of corporate mergers, acquisitions, or asset
sales.
2. User Notice
The introductory paragraphs of the user notice have been slightly
modified by adding, at the suggestion of an industry commenter, a
statement directing readers to the end of the notice where there is now
a list of the sections of the FCRA with parallel citations to the
United States Code. Readers are also referred to the Commission's Web
site, where the full text of the FCRA is available.
A number of finance commenters suggested that the statement in the
third bullet of Part I.A. (``Users Must Have a Permissible Purpose''),
discussing the credit permissible purpose in FCRA Section 604(a)(3)(A),
should be broadened to include any credit transaction ``involving'' a
consumer. The Commission believes that the only situations where
consumer reports may be obtained under this subsection occur when
consumers apply for credit, or where a creditor obtains consumer
reports for the review or collection of consumers' accounts.
Accordingly, the Commission has not changed this section of the notice.
A significant change has been made in the introductory paragraph of
Part I.C. (``Users Must Notify Consumers When Adverse Actions Are
Taken''). A number of business and finance commenters expressed
concerns that the Commission's description of adverse actions did not
adequately explain that no adverse action occurs in a credit
transaction when a user makes a counteroffer that is accepted by the
consumer. The Commission has shortened the explanatory text as a result
of these comments, has added ``as defined by Section 603(k) of the
FCRA'' in the second sentence, and has added a statement that no
adverse action occurs for the purposes of the FCRA where a creditor
makes, and the consumer accepts, a counteroffer. Similar changes were
made in the first sentence of Part I.C.1.
The discussion in Part I.C.3. (``Adverse Actions Based on
Information Obtained From Affiliates'') also has been modified. At the
suggestion of industry and finance commenters, who found the discussion
confusing, the Commission has eliminated the portion of the
parenthetical discussion at the end of the paragraph that discussed the
sharing of non-consumer report information among affiliates. This issue
is discussed in more detail on the Commission's Web site.
The discussion in Part I.D. (``Users Have Obligations When Fraud
and Active Duty Military Alerts are in Files'') has been slightly
modified to emphasize that the limitations imposed on users apply only
in certain circumstances. Part I.E. (``Users Have Obligations When
Notified of an Address Discrepancy''), discussing duties where the user
has an address that differs from the address(es) in the information
obtained from the consumer reporting agency, has been expanded to make
clear that these duties apply only to users who receive address
discrepancy notices from nationwide consumer reporting agencies.
The proposed notice included in Part II a description of the
requirement in Section 615(h) that users who are creditors must provide
a notice to consumers when risk-based pricing systems are used. This
statement generated a considerable response from business, industry,
and finance commenters. There is no obligation under Section 615(h)
until it is implemented by a joint rule of the Federal Reserve Board
and the Commission. The Commission has revised this section to include
a simple recitation of the statutory language, and will defer
consideration of how best to describe this new obligation until the
joint rule is complete.
Finally, some minor changes have been made in Parts III.A.
(``Employment Other Than in the Trucking Industry'') and VI
(``Obligations of Users of Medical Information'') in response to
industry and finance commenters. The
[[Page 69783]]
discussion of user duties in employment situations in Part III.A. has
been expanded to make clear that consumers may give blanket
authorization to employers for consumer reports to be obtained during
the term of employment. And the discussion in Part VI of the
obligations of users of medical information has been revised slightly
to specify that regulations issued by the banking and credit union
regulators will affect the use of medical data.
V. Repeal of Existing Summaries and Notices
The existing model Summary of Consumer Rights, Notice of Furnisher
Duties, and Notice of User Duties are codified at 16 CFR part 601. The
Commission is reorganizing Subchapter F of Title 16 of the Code of
Federal Regulations to reflect its substantial new rulemaking and other
responsibilities under the FACT Act and FCRA. As a part of this general
organizational scheme the Commission plans to codify all guidance on
model forms and disclosures, including the model Summaries of Rights
and Notices of Duties, at 16 CFR part 698. Accordingly, it is repealing
the existing notices at 16 CFR part 601, but is reserving that Part for
future use. The new and revised model Summaries of Rights and Notices
of Duties will be codified at 16 CFR part 698, Appendices E, F, G, and
H.
VI. Effective Date
The Commission is setting an effective date for the model summaries
and notices of sixty days after publication in the Federal Register.
The consumer reporting agencies may, of course, begin using the model
summaries and notices earlier than that, but the Commission expects
that it will take a certain amount of time for the consumer reporting
agencies to have their summaries and notices printed and ready for
distribution. In addition, the FACT Act specifically states that the
consumer reporting agencies have sixty days after the model summary for
identity theft rights is prescribed in final form to begin distributing
such a summary. Consequently, for ease of administration and
convenience, the Commission is establishing one, uniform effective date
for all of the summaries and notices.
VII. Final Regulatory Flexibility Act Analysis
The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-612,
requires that the Commission provide an Initial Regulatory Flexibility
Analysis (``IRFA'') with any action that may constitute a rule and a
final Regulatory Flexibility Analysis (``FRFA'') with the final action,
unless the Commission certifies that its action will not have a
significant economic impact on a substantial number of small entities
(i.e., those with less than $6,000,000 in average annual receipts). 5
U.S.C. 603-605. The Commission stated in its IRFA that it had concluded
that this matter will not have a significant economic impact on a
substantial number of small entities. The Commission, however, did
request public comment on this issue. As discussed below, only one
comment specifically addressed the RFA. The Commission hereby certifies
that this matter will not have a significant economic impact on a
substantial number of small entities.
A. Need for and Objectives of Proceeding
The Fair and Accurate Credit Transactions Act of 2003, Public Law
108-159, 117 Stat. 1952, substantially amended the FCRA. The FACT Act
added Section 609(d) of the FCRA, which requires the Commission to
prescribe a summary of the rights that identity theft victims have
under the FCRA. The FACT Act also amended Section 609(c), which was
added in the 1996 amendments to the FCRA and which requires the
Commission to prescribe a general summary of consumer rights under the
FCRA. Finally, the FACT Act extensively amended many other provisions
of the FCRA. As a result, the notices of user and furnisher duties that
the Commission is required to prescribe by Section 607(d) of the FCRA
are outdated. The Commission is now prescribing all four of these
documents in accordance with the requirements of the FCRA as amended by
the FACT Act.
B. Significant Issues Raised by Public Comment
The Commission received only one comment specifically focused on
the IRFA published by the Commission on July 16. This came from
industry commenter Consumer Data Industry Association (CDIA). In its
proposal the Commission stated that it believed that the FACT Act's
amendments to the FCRA were significant enough to require that revised
furnisher and user notices be distributed by consumer reporting
agencies to all persons that furnish information to them and that
obtain information from them. CDIA stated that it would be burdensome
for consumer reporting agencies to have to distribute revised notices
to furnishers and users that had already received the Commission's 1997
versions of these documents. CDIA, however, did not provide any
information on the number of small entities that would be affected or
the costs imposed upon these entities. A number of other commenters,
while not directing their comments to the Commission's IRFA, also
questioned whether consumer reporting agencies should have to
distribute revised furnisher and user notices. As discussed above, the
Commission believes that consumer reporting agencies need deliver these
``interim'' revised user and furnisher notices only to new users and
furnishers. Existing users and furnishers can be provided new notices
when the Commission makes final revisions to the notices, following
completion of the FACT Act rulemaking proceedings.
C. Small Entities to Which the Rule Will Apply
The proposed summaries and notices are to be distributed by
consumer reporting agencies. The definition of a ``small'' consumer
reporting agency is currently one with less than $6 million in average
annual receipts (see http://www.sba.gov/size). The consumer reporting
industry is primarily composed of large national consumer reporting
agencies, including the so-called ``nationwide'' consumer reporting
agencies and ``nationwide specialty'' consumer reporting agencies, as
defined in FCRA Sections 603(p) and 603(w), respectively. The
Commission believes that none of these nationwide agencies are
``small'' entities. There are, however, small consumer reporting
agencies associated with the nationwide consumer reporting agencies,
and there are small independent consumer reporting agencies. Based on
the membership of the major consumer reporting agency trade
associations, the Commission believes that the total universe of
entities potentially covered by the requirement to distribute summaries
and notices is between 1000 and 1400. As discussed below, the
Commission believes that the large nationwide entities will be
responsible for much of the distribution of the summaries and notices.
The Commission received no comments on the number of small entities
that will be affected.
D. Projected Reporting, Recordkeeping, and Other Compliance
Requirements
The Commission's proposal will impose no specific reporting or
recordkeeping requirements. Consumer reporting agencies are required by
statute, however, to distribute the prescribed summaries and notices.
The summary of identity theft rights (Section 609(d)) will be
distributed to all consumers who contact the agencies to
[[Page 69784]]
report that they may be the victim of fraud or identity theft. The
general summary of consumer rights (Section 609(c)) will be distributed
with each written file disclosure made by the agencies. Both of these
summaries will be distributed to large numbers of consumers each year.
By contrast, the notices of user and furnisher duties (Section 607(d))
need be distributed only on a one-time basis to all of the entities
that furnish information to a consumer reporting agency or use
information obtained from an agency.
The Commission does not believe that the requirements mandated by
the FACT Act and discussed in detail in the IRFA analysis will increase
in any significant way the burdens already imposed by the FCRA on
consumer reporting agencies. Because the Commission is providing the
language for the summaries and notices, businesses need not incur legal
or other professional costs to develop any written material. The cost
of training employees, if any, should be minimal. When the document is
distributed electronically, the Commission believes that the
distribution costs will be negligible. The Commission believes that the
major burden of providing the new summary of identity theft rights will
fall upon the nationwide consumer reporting agencies that are not small
entities. The Commission received no comments on this issue.
E. Duplicative, Overlapping, or Conflicting Federal Rules
The Commission has not identified any other federal statutes,
rules, or policies that would duplicate, overlap, or conflict with the
proposed notices. The Commission received no comments on this issue.
F. Steps Taken To Minimize Significant Economic Impact on Small
Entities
The Commission invited comment on suggested alternative methods of
compliance. While no commenter specifically addressed this issue, a
number of industry and finance commenters expressed concerns that it
would be burdensome to redistribute the furnisher and user notices. As
discussed above, the Commission believes that consumer reporting
agencies need deliver these ``interim'' revised user and furnisher
notices only to new users and furnishers. Existing users and furnishers
can be provided new notices when the Commission makes final revisions
to the notices, following completion of the FACT Act rulemaking
proceedings.
VIII. Paperwork Reduction Act
In its initial review of the proposed summaries and notices, the
Commission considered whether it was ``sponsoring or conducting'' any
``collection[s] of information'' that would trigger the provisions of
the Paperwork Reduction Act, 44 U.S.C. Chapter 35. The Commission
concluded that it was not and that the proposed summaries and notices
fell within the exception to the definition of a ``collection of
information'' as ``[t]he public disclosure of information originally
supplied by the Federal government to the recipient for the purpose of
disclosure to the public.'' 5 CFR 1320.3(x)(2). Nonetheless, the
Commission requested public comment on this matter. No comments were
received. Accordingly, the Commission has determined that its actions
in this matter will not implicate the Paperwork Reduction Act.
IX. Final Guidance on Model Disclosures
List of Subjects in 16 CFR Parts 601 and 698
Fair Credit Reporting Act, Consumer reports, Consumer reporting
agencies, Credit, Trade practices.
0
Accordingly, for the reasons set forth above, the FTC amends title 16,
Code of Federal Regulations, as follows:
PART 601--[REMOVED AND RESERVED]
0
1. Part 601 is removed and reserved.
0
2. Revise the heading of part 698 to read as follows:
PART 698--MODEL FORMS AND DISCLOSURES
0
3. The authority for Part 698 is revised to read as follows:
Authority: 15 U.S.C. 1681e, 1681g, 1681j, 1681m, and 1681s;
section 211(d), Pub. L. 108-159, 117 Stat. 1952.
0
4. Revise Sec. Sec. 698.1 and 698.2 to read as follows:
Sec. 698.1 Authority and purpose.
(a) Authority. This part is issued by the Commission pursuant to
the provisions of the Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.), as amended by the Consumer Credit Reporting Reform Act of 1996
(Title II, Subtitle D, Chapter 1, of the Omnibus Consolidated
Appropriations Act for Fiscal Year 1997), Public Law 104-208, 110 Stat.
3009-426 (Sept. 30, 1996), and the Fair and Accurate Credit
Transactions Act of 2003, Public Law 108-159, 117 Stat. 1952 (Dec. 4,
2003).
(b) Purpose. The purpose of this part is to comply with sections
607(d), 609(c), 609(d), and 612(a) of the Fair Credit Reporting Act, as
amended by the Fair and Accurate Credit Transactions Act of 2003, and
Section 211 of the Fair and Accurate Credit Transactions Act of 2003.
Sec. 698.2 Legal effect.
These model forms and disclosures prescribed by the FTC do not
constitute a trade regulation rule. The issuance of the model forms and
disclosures set forth below carries out the directive in the statute
that the FTC prescribe these forms and disclosures. Use or distribution
of these model forms and disclosures will constitute compliance with
any section or subsection of the FCRA requiring that such forms and
disclosures be used by or supplied to any person.
0
5. Add new Sec. 698.3 to read as follows:
Sec. 698.3 Definitions.
As used in this part, unless otherwise provided:
(a) Substantially similar means that all information in the
Commission's prescribed model is included in the document that is
distributed, and that the document distributed is formatted in a way
consistent with the format prescribed by the Commission. The document
that is distributed shall not include anything that interferes with,
detracts from, or otherwise undermines the information contained in the
Commission's prescribed model.
0
6. Amend part 698 to add a new Appendix E as follows:
Appendix E to Part 698--Summary of Consumer Identity Theft Rights
The prescribed form for this summary is a disclosure that is
substantially similar to the Commission's model summary with all
information clearly and prominently displayed. A summary should
accurately reflect changes to those items that may change over time
(such as telephone numbers) to remain in compliance. Translations of
this summary will be in compliance with the Commission's prescribed
model, provided that the translation is accurate and that it is
provided in a language used by the recipient consumer.
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0
7. Amend part 698 to add a new Appendix F as follows:
Appendix F to Part 698--General Summary of Consumer Rights
The prescribed form for this summary is a disclosure that is
substantially similar to the Commission's model summary with all
information clearly and prominently displayed. The list of federal
regulators that is included in the Commission's prescribed summary
may be provided separately so long as this is done in a clear and
conspicuous way. A summary should accurately reflect changes to
those items that may change over time (e.g., dollar amounts, or
telephone numbers and addresses of federal agencies) to remain in
compliance. Translations of this summary will be in compliance with
the Commission's prescribed model, provided that the translation is
accurate and that it is provided in a language used by the recipient
consumer.
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0
8. Amend Part 698 to add a new Appendix G as follows:
Appendix G to Part 698--Notice of Furnisher Responsibilities
The prescribed form for this disclosure is a separate document
that is substantially similar to the Commission's model notice with
all information clearly and prominently displayed. Consumer
reporting agencies may limit the disclosure to only those items that
they know are relevant to the furnisher that will receive the
notice.
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0
9. Amend Part 698 to add a new Appendix H as follows:
Appendix H to Part 698--Notice of User Responsibilities
The prescribed form for this disclosure is a separate document
that is substantially similar to the Commission's notice with all
information clearly and prominently displayed. Consumer reporting
agencies may limit the disclosure to only those items that they know
are relevant to the user that will receive the notice.
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By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 04-26240 Filed 11-29-04; 8:45 am]
BILLING CODE 6750-01-C