[Federal Register: February 11, 2004 (Volume 69, Number 28)]
[Rules and Regulations]               
[Page 6526-6531]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11fe04-2]                         

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FEDERAL RESERVE SYSTEM

12 CFR Part 222

FEDERAL TRADE COMMISSION

16 CFR Part 602

[Regulation V; Docket Nos. R-1172 and R-1175; and Project No. PO44804]
RIN 3084-AA94

 
Effective Dates for the Fair and Accurate Credit Transactions Act 
of 2003

AGENCIES: Board of Governors of the Federal Reserve System (Board) and 
Federal Trade Commission (FTC).

ACTION: Joint final rules.

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SUMMARY: The recently enacted Fair and Accurate Credit Transactions Act 
of 2003 (FACT Act or the Act) requires the Board and the FTC (the 
Agencies) jointly to adopt rules establishing the effective dates for 
provisions of the Act that do not contain specific effective dates. The 
Agencies are adopting joint final rules that establish a schedule of 
effective dates for many of the provisions of the FACT Act for which 
the Act itself does not specifically provide an effective date. The 
Agencies also are jointly making final rules that previously were 
adopted on an interim basis. Those rules establish December 31, 2003, 
as the effective date for provisions of the Act that determine the 
relationship between the Fair Credit Reporting Act (FCRA) and state 
laws and provisions that authorize rulemakings and other implementing 
action by various agencies.

EFFECTIVE DATE: Effective on March 12, 2004.

FOR FURTHER INFORMATION CONTACT:
    Board: Thomas E. Scanlon, Counsel, Legal Division, (202) 452-3594; 
David A. Stein, Counsel, Minh-Duc T. Le, Ky Tran-Trong, Senior 
Attorneys, Krista P. DeLargy, Attorney, Division of Consumer and 
Community Affairs, (202) 452-3667 or (202) 452-2412; for users of 
Telecommunications Device for the Deaf (``TDD'') only, contact (202) 
263-4869.
    FTC: Christopher Keller or Katherine Armstrong, Attorneys, Division 
of Financial Practices, (202) 326-3224.

SUPPLEMENTARY INFORMATION:

I. Background

    The FACT Act became law on December 4, 2003. Pub. L. 108-159, 117 
Stat. 1952. In general, the Act amends the FCRA to enhance the ability 
of consumers to combat identity theft, to increase the accuracy of 
consumer reports, and to allow consumers to exercise greater control 
regarding the type and amount of marketing solicitations they receive. 
The FACT Act also restricts the use and disclosure of sensitive medical 
information. To bolster efforts to improve financial literacy among 
consumers, title V of the Act (entitled the ``Financial Literacy and 
Education Improvement Act'') creates a new Financial Literacy and 
Education Commission empowered to take appropriate actions to improve 
the financial literacy and education programs, grants, and materials of 
the Federal government. Lastly, to promote increasingly efficient 
national credit markets, the FACT Act establishes uniform national 
standards in key areas of regulation.
    The Act includes effective dates for many of its sections that vary 
to take account of the need for rulemaking, implementation efforts by 
industry, and other policy concerns. Section 3 of the FACT Act requires 
the Agencies to prescribe joint regulations establishing an effective 
date for each provision of the Act ``[e]xcept as otherwise specifically 
provided in this Act and the amendments made by this Act.'' The FACT 
Act requires that the Agencies jointly adopt final rules establishing 
the effective dates within two months of the date of the enactment of 
the Act. Thus, by law, the Agencies must complete these rulemaking 
efforts by February 4, 2004. The Act also provides that each of the 
effective dates set by the Agencies must be ``as early as possible, 
while allowing a reasonable time for the implementation'' of that 
provision, but in no case later than ten months after the date of 
issuance of the Agencies' joint final rules establishing the effective 
dates for the Act. 117 Stat. 1953.
    In mid-December of 2003, the Agencies took two related actions to 
comply with the requirement to establish effective dates for the Act. 
In the first action, the Agencies implemented joint interim final rules 
that establish December 31, 2003, as the effective date for sections 
151(a)(2), 212(e), 214(c), 311(b), and 711 of the FACT Act, each of 
which determines the relationship of State laws to areas governed by 
the FCRA. See 68 FR 74467 (Dec. 24, 2003). In the second action, the 
Agencies proposed joint rules that would establish a schedule of 
effective dates for certain other provisions of the FACT Act for which 
the Act itself does not specifically provide an effective date. See 68 
FR 74529 (Dec. 24, 2003). The Agencies sought comment on both of these 
related actions.

[[Page 6527]]

II. Overview of the Comments Received

    The Agencies collectively received more than 50 comments in 
response to the joint interim final and proposed rules; many commenters 
sent copies of the same letter to each of the Agencies and submitted 
separate comments on both the joint interim final and proposed 
rules.\1\ Most of the comments were submitted by financial institutions 
and associations that represent financial institutions. Other comments 
were submitted by the National Association of Attorneys General and by 
groups that represent consumers, including the Consumer Federation of 
America. Three members of Congress also submitted comments in response 
to the Agencies' joint interim and proposed rules.
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    \1\ Comments submitted to the Commission can be found at http://www.ftc.gov/os/comments/factactcomments/index.html
; for the Board, 

http://federalreserve.gov/generalinfo/foia/index.cfm?doc_id=R%2D1175&ShowAll=Yes and http://federalreserve.gov/generalinfo/

/">http://federalreserve.gov/generalinfo/fo/



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    Overall, commenters supported the Agencies' approach to establish 
effective dates in a bifurcated structure that distinguished the 
provisions that require immediate effective dates (primarily those that 
relate to state laws) from the other provisions of the FACT Act. The 
comments also expressed support for the Agencies' joint proposal to 
establish a schedule of effective dates that would make certain 
provisions effective as early as March 31, 2004, and others effective 
December 1, 2004. Commenters focused on two main issues: first, with 
respect to the Agencies' joint interim final rules, commenters raised 
concerns about establishing December 31, 2003, as the effective date 
for the preemption provisions of the FCRA, as amended by the FACT Act; 
and second, commenters raised concerns about establishing December 1, 
2004, as the effective date for section 214(a) of the FACT Act, which 
relates to using information for making solicitations to a consumer. 
After reviewing the comments received, the Agencies have determined to 
make final the joint interim rules and have modified the joint proposed 
rules in certain respects, as discussed below.\2\
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    \2\ The Agencies note that the citations used in the discussion 
below refer to the subsections of their respective regulations, 
leaving citations to the part number used by each agency blank.
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III. Section-by-Section Analysis

    In the supplementary information to the joint interim final rules, 
the Agencies addressed the effective dates for certain provisions of 
the FACT Act that require one or more agencies to undertake an action 
or rulemaking within a specified period of time after enactment of the 
Act. 68 FR 74468. The Agencies determined that no joint regulations 
under section 3 of the FACT Act are required to make these provisions 
effective. The Agencies found that, in these cases, the date of 
enactment of the statute is specified as the lawful effective date 
because that is the predicate for mandating that an agency action be 
performed within a period of time after the date of enactment. The 
commenters addressing this determination supported the Agencies' 
finding and interpretation under section 3 with respect to these 
provisions of the Act. The Agencies have not established in these joint 
final rules the effective dates that apply to these provisions of the 
Act.

Section----.1(c)(1)(i): Provisions that relate to State laws

    The Agencies received several comments on the joint interim final 
rules that establish December 31, 2003, as the effective date for the 
provisions of the FACT Act that make permanent the existing preemption 
provisions of the FCRA and add others.
    Overall, commenters supported the Agencies' determination that a 
final rule should be prescribed immediately to implement December 31, 
2003, as the effective date for paragraph (3) of section 711 of the 
FACT Act. That section eliminates the so-called sunset provision and 
thus makes permanent the current provisions preempting State laws in 
seven areas regulated under the FCRA.
    Commenters presented several different views on the Agencies' joint 
interim final rule that also establishes December 31, 2003, as the 
effective date for paragraph (2) of section 711 of the Act. This sub-
provision amends the FCRA by providing that no requirement or 
prohibition may be imposed by the laws of any State ``with respect to 
the conduct required by the specific provisions of'' nine sections of 
the FCRA, as amended by the FACT Act. Several commenters argued that 
the effective dates for the new preemption provisions added in 
paragraph (2) should be linked with the effective dates of the 
substantive provisions of the Act.\3\ These commenters argued that, if 
the FACT Act provisions are read to preempt existing State laws prior 
to the time that the FACT Act provisions are actually implemented, then 
consumers who reside in several States may be deprived of the 
protections under State laws before the Federal protections become 
effective.
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    \3\ See Nat'l Assoc. of Attorneys General, Consumer Federation 
of America, et al., Privacy Rights Clearinghouse, Senators Paul S. 
Sarbanes and Dianne Feinstein, and Representative Barney Frank.
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    Other commenters argued in contrast that the Agencies should 
clarify that the FACT Act provisions preempt State laws immediately and 
without regard to when the underlying Federal provision becomes 
effective.\4\ These commenters contended that it would be costly and 
confusing to delay the preemptive effect of the FACT Act provisions and 
thereby subject financial institutions, consumer reporting agencies, 
and others to State law requirements for the brief period of time until 
rules implementing the Federal provisions become effective.
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    \4\ See, e.g., Bank of America, FleetBoston Financial Corp., 
Financial Services Roundtable, Visa USA, Inc., and Wells Fargo & Co.
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    The Agencies are required by section 3 of the FACT Act to establish 
effective dates for various provisions of the FACT Act, and to set 
those dates not later than 10 months after the issuance of the final 
joint rules. When and whether State laws are preempted by these 
provisions of the FACT Act is determined by each specific provision of 
the FACT Act and the provisions of the FCRA that the FACT Act amends. 
In establishing December 31, 2003, as the effective date for the 
provisions of the FACT Act that address the relation to State laws, the 
Agencies did not determine when or whether any particular State law was 
or would be preempted.
    After review of the comments, the Agencies adopt section 
--.1(c)(1)(i) as set forth in the interim rules.
    The Agencies note that section 711(2) of the FACT Act adds a new 
provision to the FCRA that bars any requirement or prohibition under 
any State laws ``with respect to the conduct required by the specific 
provisions'' of the FCRA, as amended by the FACT Act. The joint final 
rules are based on the Agencies' view that the specific protections 
afforded under the FCRA override State laws only when the referenced 
Federal provisions that require conduct by the affected persons are in 
effect because that is the time when conduct is required by those 
provisions of the FCRA. Similarly, section 151(a)(2) of the FACT Act 
adds a new provision to section 625(b)(1) of the FCRA that preempts any 
State law ``with respect to any subject matter regulated under'' that 
provision. Only when a Federal provision is in effect does the subject 
matter become regulated under that section and, consequently, State law 
preempted.\5\ In both of these situations,

[[Page 6528]]

the Agencies believe that a requirement that applies under an existing 
State law will remain in effect until the applicable specific provision 
of the FCRA, as amended by the FACT Act, becomes effective. 
Consequently, because the substantive Federal provisions actually will 
become effective at different times, from six months to three years 
after the FACT Act was enacted, establishing December 31, 2003, as the 
effective date for the preemption provisions would allow the State law 
to continue in effect until the respective Federal protections 
underlying each of the Federal preemption provisions comes into effect.
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    \5\ Identical language in the FCRA prefaces the preemption 
provisions established in sections 214(c) and 311(b) of the FACT 
Act, and similar language prefaces the preemption provision 
established in section 212(e).
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Section ----.1(c)(1)(ii): Provisions relating to agency action

    In the joint interim final rules, the Agencies determined that 
December 31, 2003, is the effective date for each of the provisions of 
the FACT Act that authorizes an agency to issue a regulation or to take 
other action to implement the applicable provision of the FACT Act or 
of the FCRA. This subsection of the joint interim final rules limited 
the immediate effective date only to an agency's authority to propose 
and adopt the implementing regulation or to take such other action. In 
reaching that determination, the Agencies explained that joint interim 
final rules would not affect the substantive provisions of the FACT Act 
implemented by an agency rule.
    Commenters supported the Agencies' finding and determination to 
establish an immediate effective date for the provisions of the Act 
that relate to an agency's authority to issue a regulation or take 
other action. After review of the comments received and for the reasons 
set forth in the joint interim final rules, the Agencies adopt section 
--.1(c)(1)(ii) as set forth in the interim rules. The Agencies reassert 
the position that the substantive provisions of the Act become 
effective as provided in the Act, as provided in the Agencies' joint 
effective date rules, or as provided by the substantive rules 
promulgated by the agencies, as appropriate.

Section ----.1(c)(2): Provisions effective March 31, 2004

    As the Agencies observed in the joint proposal, the FACT Act 
contains a number of provisions that clarify or address rights and 
requirements under the FCRA that are self-effectuating but that do not 
contain a specific effective date. These provisions are: Section 156 
(statute of limitations); sections 312(d) (furnisher liability 
exception), (e) (liability and enforcement), and (f) (rule of 
construction); section 313(a) (action concerning complaints); section 
611 (communications for certain employee investigations); and section 
811 (clerical amendments). Section 111 (amendment to definitions) 
contains definitions that are self-effectuating but that do not contain 
specific effective dates. The Agencies proposed to establish March 31, 
2004, as the effective date for each of the provisions of the Act 
listed above.
    Overall, commenters supported the Agencies' proposal to establish 
March 31, 2004, as the effective date for these provisions. Many of the 
commenters specifically stated that the proposed effective date is 
appropriate for each of these provisions and would allow a reasonable 
period of time for affected entities to adjust or develop their systems 
to comply with the applicable requirements. For example, one financial 
institution observed that these provisions should not require 
significant changes to existing business practices conducted by 
financial institutions.\6\
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    \6\ Capital One Financial Corp.
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    One commenter argued that the Agencies should establish a later 
effective date for section 111 of the Act, which relates to certain 
definitions for the FCRA.\7\ This commenter argued that section 111 
designates a new type of consumer reporting agency, defined as a 
``reseller,'' that is specifically exempted from certain requirements 
that generally apply to all consumer reporting agencies. Under the 
Agencies' proposed rule, the definition of ``reseller'' would be 
effective earlier than the provisions that exempt a ``reseller'' from 
certain obligations, which would be effective on December 1, 2004. The 
commenter believed that, during that intervening period a ``reseller'' 
may be subject to certain requirements under the FCRA, but unable to 
avail itself of an exemption until the applicable statutory provision 
added by the FACT Act later becomes effective.
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    \7\ Countrywide Financial Corp.
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    The Agencies have established March 31, 2004, as the effective date 
for section 111 as proposed. Establishing the effective date for 
section 111, which includes only definitions of terms used throughout 
the new provisions of the FCRA added by the FACT Act, does not impose 
any substantive obligation on a ``reseller'' or others referenced in 
that section. All the obligations, if any, are imposed by the 
substantive provisions of the FACT Act and FCRA, which become effective 
according to the terms of the applicable statutory provision, the 
Agencies' joint rules, or as provided by the substantive implementing 
regulation by an agency, as appropriate. The Agencies also believe that 
establishing a relatively early effective date for all of the 
definitions set forth in section 111 is appropriate because the new 
terms apply to a variety of statutory provisions and implementing 
regulations that become effective at various times.
    One commenter urged the Agencies to adopt a later effective date 
for section 156 of the Act, which pertains to the statute of 
limitations.\8\ Relative to the time periods that currently apply to 
actions involving violations of the FCRA, section 156 extends the 
statute of limitations to permit a plaintiff to bring an action in an 
appropriate court not later than the earlier of (1) two years after the 
date of discovery by the plaintiff of the violation or (2) five years 
after the date on which the violation that is the basis for such 
liability occurs. This commenter argued that the ``extended statute of 
limitations for many causes of action will require users of consumer 
reports and others to reevaluate and alter their recordkeeping systems 
in order to retain the appropriate documents and other information that 
may be necessary for use in future causes of action.''
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    \8\ MasterCard Int'l.
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    The Agencies recognize that financial institutions and others 
undoubtedly will be affected by the amendment to the statute of 
limitations. Nevertheless, the Agencies find, upon review of all of the 
comments received on the proposal, that the potentially adverse effects 
that may arise due to a three-month implementation period (following 
the date of the Agencies' proposal) are minimal. In light of the 
mandate in section 3 of the Act to ``establish effective dates that are 
as early as possible, while allowing a reasonable time for the 
implementation of the provisions of this Act,'' the Agencies have 
determined that March 31, 2004, is a reasonable effective date for 
section 156.
    Upon review of the comments received on the other provisions of the 
Act subject to this part of the joint proposal, the Agencies believe 
that the ``reasonable time to implement'' standard of section 3 of the 
Act permits an early effective date because, in general, these 
provisions do not require significant changes to business procedures. 
Furthermore, the Agencies note that the commenters did not disagree 
with the Agencies' preliminary view that each of these provisions 
furnishes important benefits to consumers and affected businesses. The

[[Page 6529]]

Agencies find that March 31, 2004, is an appropriate date that balances 
the statutory mandate to effectuate provisions of the Act ``as early as 
possible'' while allowing a reasonable time for the implementation of 
the provisions described in this part of the joint proposal.

Section ----.1(c)(3): Provisions effective December 1, 2004

    In general, commenters supported the Agencies' proposal to 
establish December 1, 2004, as the effective date for provisions that 
require changes in systems, disclosure forms or practices, or 
implementing regulations to be administered effectively. With a few 
exceptions discussed below, the commenters stated that allowing the 
maximum time permitted under section 3 of the Act for these provisions 
to become effective is appropriate and would allow a reasonable period 
of time for affected entities to adjust or develop their systems to 
comply with the applicable requirements.
    Many commenters expressed concerns about the Agencies' proposal to 
establish December 1, 2004, as the effective date for section 214(a) of 
the Act, which creates a new section 624 of the FCRA.\9\ This new 
section sets forth a special rule that applies to the use of 
information by an affiliate for making solicitations to a consumer. 
Commenters argued, in general, that the Agencies' proposed effective 
date would be inconsistent with the time frame contemplated by the 
statute itself for implementing this provision. Commenters observed 
that section 214(b) of the FACT Act provides that regulations ``to 
implement section 624 of the [FCRA]'' must be prescribed no later than 
September 4, 2004, and those implementing regulations must become 
effective not later than six months thereafter. Commenters noted that 
aligning the effective date of the statutory provision with the time 
frame for prescribing the applicable regulations for that provision 
would, as a practical matter, assist companies to coordinate the 
notices to consumers required by this new law with their other notices, 
such as their privacy notices required by the Gramm-Leach-Bliley 
Act.\10\
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    \9\ See, e.g., America's Community Bankers, Bank of America, 
MBNA America, FleetBoston Financial Corp., Capital One Financial 
Corp., Financial Services Roundtable, Household Automative Finance 
Corp., Household Bank, Visa USA, Inc., and Bank One Corp.
    \10\ 15 U.S.C. 6802-03.
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    Based on the comments received on the joint proposal, the Agencies 
have reconsidered whether it is necessary for the Agencies to establish 
an effective date for section 214(a) under section 3 of the FACT Act. 
Section 624(a)(5) of the FCRA, as added by section 214(a) of the FACT 
Act, restricts the use of customer information shared by a financial 
institution with its affiliate. That section also specifically provides 
that ``[t]his subsection shall not prohibit the use of information to 
send a solicitation to a consumer if such information was received 
prior to the date on which persons are required to comply with 
regulations implementing this subsection.'' As noted above, subsection 
214(b) establishes specific dates for the issuance and effectiveness of 
the implementing regulations for section 214(a). The Agencies believe 
that this ``no-retroactivity'' paragraph, which specifically references 
the date of the rules adopted under section 214(b), inextricably 
connects the underlying obligations imposed by section 214(a) with the 
effective date(s) specifically set by Congress in section 214(b). Read 
together, these provisions establish a specific effective date for the 
obligations in section 214(a).
    Section 3 of the FACT Act mandates that the Agencies jointly 
establish effective dates for the provisions of the Act ``[e]xcept as 
otherwise specifically provided in this Act and the amendments made by 
this Act.'' Because the obligations in section 214(a) are specifically 
referenced and directly connected to the rulemaking schedule specified 
in section 214(b), the Agencies believe Congress has established the 
effective date for section 214(a), which is the effective date of the 
rules implementing that section. Accordingly, the Agencies have 
determined that the Agencies are not required by section 3 of the FACT 
Act to establish an effective date for section 214(a) and that section 
becomes effective according to the schedule established by section 
214(b).
    The Agencies believe that the same analysis applies to sections 
211(a) (concerning free consumer reports) and 216 (concerning the 
disposal of consumer report information and records). Each of these 
sections specifically references and depends upon the implementation of 
regulations that Congress has required be issued by specific dates.\11\ 
Consequently, Congress has specified the effective dates of these 
sections to be the effective dates of the implementing rules, which 
must be completed by specific dates. For this reason, the Agencies 
believe that the Agencies are not required by section 3 of the FACT Act 
to set effective dates for section 211(a) or section 216. These 
sections will become effective on the dates that the implementing rules 
become effective. The FACT Act contains a number of other provisions 
without effective dates that would require changes in systems, 
disclosure forms or practices, or implementing regulations to be 
administered effectively. The Agencies have determined that December 1, 
2004, is an appropriate effective date for all of the provisions 
included in subsection --.1(c)(3) of the joint proposed rules, except 
for sections 211(a), 214(a), and 216, as discussed above. Providing the 
full 10-month period permitted by the Act will allow industry and the 
various agencies a reasonable time to establish systems and rules to 
implement these sections effectively. Each of these sections is listed 
in the final joint rules.\12\
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    \11\ See sections 612(a)(1)(B), (C)(iii), and (C)(iv) of the 
FCRA, as added by section 211 of the FACT Act, and section 211(d) of 
the Act; section 628(a)(1) of the FCRA as added by section 216 of 
the FACT Act.
    \12\ The Agencies note that a portion of the amendment made by 
section 151(a)(1) (which adds section 609(e) to the FCRA) becomes 
effective 180 days after enactment of the Act.
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    One commenter suggested that the Agencies should establish December 
4, 2004, instead of December 1, 2004, as proposed, as the effective 
date for these provisions of the Act.\13\ This commenter noted that 
December 1, 2004, falls on a Wednesday and contended that an effective 
date that falls during the middle of the week ``could work a hardship 
on many companies.'' The commenter indicated that establishing December 
4, 2004, as the effective date for these provisions may help to ensure 
that implementation processes proceed smoothly because companies would 
be provided with more time to implement and test new systems in place 
over that weekend. By contrast, other commenters stated that December 
1, 2004, is consistent with the maximum 10-month period permitted under 
the statute and did not note any adverse consequences that could be 
posed by that particular day.
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    \13\ American Council of Life Insurers.
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    Section 3 of the FACT Act permits the Agencies to establish an 
effective date as late as 10 months following the effective date of the 
Agencies' joint final rules. This date was uncertain at the time the 
rules were proposed. The Agencies believed that adopting a date certain 
would reduce burden on all affected by the joint rules by removing 
uncertainty about the effective date. The Agencies proposed December 1, 
2004, as a date that would both be within the 10-month statutory period 
and allow affected entities to begin implementation efforts

[[Page 6530]]

at the start of a new month. Based on all of the comments, the Agencies 
continue to believe that, on balance, December 1, 2004, is an 
appropriate effective date for the provisions of the statute described 
in section --.1(c)(3) of the joint rules because the first day of the 
month sharply demarcates the start date for these provisions of the new 
law and reduces burden on entities that use a monthly cycle.

Regulatory Analysis

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3506; 5 CFR 1320 Appendix A.1), the Agencies have reviewed the joint 
final rules. (The Board has done so under authority delegated to the 
Board by the Office of Management and Budget.) The joint final rules 
contain no collections of information pursuant to the Paperwork 
Reduction Act.

Regulatory Flexibility Act

    In accordance with section 3(a) of the Regulatory Flexibility Act 
(5 U.S.C. 603(a)), the Agencies must publish a final regulatory 
flexibility analysis with these joint rules. The joint rules establish 
effective dates for several provisions of the FACT Act. Prior to the 
enactment of the FACT Act, the FCRA imposed various duties on parties 
that furnish information to consumer reporting agencies, on parties 
that use consumer reports, and on consumer reporting agencies 
themselves. The FACT Act modifies and extends some of these existing 
duties and imposes new duties on these respective parties. The schedule 
of effective dates established by the Agencies would make the newly-
enacted statutory provisions applicable with respect to these parties.
    Because the rules merely establish effective dates, the rules 
themselves impose no reporting, recordkeeping or other requirements, 
which would arise either from obligations imposed by the statute itself 
or as a result of rulemaking or other implementing actions that may be 
taken by agencies under the statute.

List of Subjects

12 CFR Part 222

    Banks, banking, Holding companies, state member banks.

16 CFR Part 602

    Consumer reports, Consumer reporting agencies, Credit, Trade 
practices.

Federal Reserve System

12 CFR Chapter II

Authority and Issuance

0
For the reasons set forth in the preamble, the Board amends 12 CFR part 
222 as follows:

PART 222--FAIR CREDIT REPORTING (REGULATION V)

0
1. The authority citation for 12 CFR part 222 continues to read as 
follows:

    Authority: 15 U.S.C. 1681a; Sec. 3, Pub. L. 108-159; 117 Stat. 
1953.

0
2. In Sec. 222.1, paragraphs (c)(2) and (c)(3) are added to read as 
follows:

Subpart A--General Provisions


Sec. 222.1  Purpose, scope, and effective dates.

* * * * *
    (c) Effective dates. * * *
    (2) Provisions effective March 31, 2004.
    (i) Section 111, concerning the definitions;
    (ii) Section 156, concerning the statute of limitations;
    (iii) Sections 312(d), (e), and (f), concerning the furnisher 
liability exception, liability and enforcement, and rule of 
construction, respectively;
    (iv) Section 313(a), concerning action regarding complaints;
    (v) Section 611, concerning communications for certain employee 
investigations; and
    (vi) Section 811, concerning clerical amendments.
    (3) Provisions effective December 1, 2004.
    (i) Section 112, concerning fraud alerts and active duty alerts;
    (ii) Section 114, concerning procedures for the identification of 
possible instances of identity theft;
    (iii) Section 115, concerning truncation of the social security 
number in a consumer report;
    (iv) Section 151(a)(1), concerning the summary of rights of 
identity theft victims;
    (v) Section 152, concerning blocking of information resulting from 
identity theft;
    (vi) Section 153, concerning the coordination of identity theft 
complaint investigations;
    (vii) Section 154, concerning the prevention of repollution of 
consumer reports;
    (viii) Section 155, concerning notice by debt collectors with 
respect to fraudulent information;
    (ix) Section 211(c), concerning a summary of rights of consumers;
    (x) Section 212(a)-(d), concerning the disclosure of credit scores;
    (xi) Section 213(c), concerning enhanced disclosure of the means 
available to opt out of prescreened lists;
    (xii) Section 217(a), concerning the duty to provide notice to a 
consumer;
    (xiii) Section 311(a), concerning the risk-based pricing notice;
    (xiv) Section 312(a)-(c), concerning procedures to enhance the 
accuracy and integrity of information furnished to consumer reporting 
agencies;
    (xv) Section 314, concerning improved disclosure of the results of 
reinvestigation;
    (xvi) Section 315, concerning reconciling addresses;
    (xvii) Section 316, concerning notice of dispute through reseller; 
and
    (xviii) Section 317, concerning the duty to conduct a reasonable 
reinvestigation.

Federal Trade Commission

16 CFR Chapter 1

Authority and Issuance

0
For the reasons set forth in the preamble, the FTC amends 16 CFR part 
602 as follows:

PART 602--FAIR CREDIT REPORTING

0
1. The authority citation for 16 CFR part 602 continues to read as 
follows:

    Authority: 15 U.S.C. 1681a; Sec. 3, Pub. L. 108-159; 117 Stat. 
1953.

0
2. In Sec. 602.1, paragraphs (c)(2) and (c)(3) are added to read as 
follows:

Subpart A--General Provisions


Sec. 602.1  Purpose, scope, and effective dates.

* * * * *
    (c) Effective dates. * * *
    (2) Provisions effective March 31, 2004.
    (i) Section 111, concerning the definitions;
    (ii) Section 156, concerning the statute of limitations;
    (iii) Sections 312(d), (e), and (f), concerning the furnisher 
liability exception, liability and enforcement, and rule of 
construction, respectively;
    (iv) Section 313(a), concerning action regarding complaints;
    (v) Section 611, concerning communications for certain employee 
investigations; and
    (vi) Section 811, concerning clerical amendments.
    (3) Provisions effective December 1, 2004.
    (i) Section 112, concerning fraud alerts and active duty alerts;
    (ii) Section 114, concerning procedures for the identification of 
possible instances of identity theft;

[[Page 6531]]

    (iii) Section 115, concerning truncation of the social security 
number in a consumer report;
    (iv) Section 151(a)(1), concerning the summary of rights of 
identity theft victims;
    (v) Section 152, concerning blocking of information resulting from 
identity theft;
    (vi) Section 153, concerning the coordination of identity theft 
complaint investigations;
    (vii) Section 154, concerning the prevention of repollution of 
consumer reports;
    (viii) Section 155, concerning notice by debt collectors with 
respect to fraudulent information;
    (ix) Section 211(c), concerning a summary of rights of consumers;
    (x) Section 212(a)-(d), concerning the disclosure of credit scores;
    (xi) Section 213(c), concerning enhanced disclosure of the means 
available to opt out of prescreened lists;
    (xii) Section 217(a), concerning the duty to provide notice to a 
consumer;
    (xiii) Section 311(a), concerning the risk-based pricing notice;
    (xiv) Section 312(a)-(c), concerning procedures to enhance the 
accuracy and integrity of information furnished to consumer reporting 
agencies;
    (xv) Section 314, concerning improved disclosure of the results of 
reinvestigation;
    (xvi) Section 315, concerning reconciling addresses;
    (xvii) Section 316, concerning notice of dispute through reseller; 
and
    (xviii) Section 317, concerning the duty to conduct a reasonable 
reinvestigation.

    By order of the Board of Governors of the Federal Reserve 
System, February 5, 2004.
Jennifer J. Johnson,
Secretary of the Board.
    Dated: February 5, 2004.

    By Direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 04-2913 Filed 2-10-04; 8:45 am]