[Federal Register Volume 75, Number 246 (Thursday, December 23, 2010)]
[Notices]
[Page 80817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32296]
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FEDERAL TRADE COMMISSION
Charges for Certain Disclosures
AGENCY: Federal Trade Commission.
ACTION: Notice regarding charges for certain disclosures.
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SUMMARY: The Federal Trade Commission announces that the ceiling on
allowable charges under Section 612(f) of the Fair Credit Reporting Act
(``FCRA'') will increase from $10.50 to $11.00 effective January 1,
2011. Under 1996 amendments to the FCRA, the Federal Trade Commission
is required to increase the $8.00 amount referred to in paragraph
(1)(A)(i) of Section 612(f) on January 1 of each year, based
proportionally on changes in the Consumer Price Index (``CPI''), with
fractional changes rounded to the nearest fifty cents. The CPI
increased 35.51 percent between September 1997, the date the FCRA
amendments took effect, and September 2010. This increase in the CPI,
and the requirement that any increase be rounded to the nearest fifty
cents, results in a maximum allowable charge of $11.00 effective
January 1, 2011.
DATES: Effective Date: January 1, 2011.
ADDRESSES: Federal Trade Commission, Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Clarke W. Brinckerhoff, Bureau of
Consumer Protection, 202-326-3208, or Keith B. Anderson, Bureau of
Economics, Federal Trade Commission, Washington, DC 20580, 202-326-
3428.
SUPPLEMENTARY INFORMATION: Section 612(f)(1)(A) of the Fair Credit
Reporting Act, which became effective in 1997, provides that a consumer
reporting agency may charge a consumer a reasonable amount for making a
disclosure to the consumer pursuant to Section 609 of the Act.\1\ The
law states that, where a consumer reporting agency is permitted to
impose a reasonable charge on a consumer for making a disclosure to the
consumer pursuant to Section 609, the charge shall not exceed $8.00 and
shall be indicated to the consumer before making the disclosure.
Section 612(f)(2) states that the Federal Trade Commission (``the
Commission'') shall increase the $8.00 maximum amount on January 1 of
each year, based proportionally on changes in the Consumer Price Index,
with fractional changes rounded to the nearest fifty cents. An
amendment of this section by the Consumer Financial Protection Act of
2010 \2\ provides that the newly-created Consumer Financial Protection
Bureau will perform this task in future years.
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\1\ This provision, originally Section 612(a), was added to the
FCRA in September 1996 and became effective in September 1997. It
was relabeled Section 612(f) by Section 211(a)(1) of the Fair and
Accurate Credit Transactions Act of 2003 (``FACT Act''), Public Law
108-159, which was signed into law on December 4, 2003.
\2\ Dodd-Frank Wall Street Reform and Consumer Protection Act,
Public Law 111-203, Title X, Section 1088.
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Section 211(a)(2) of the Fair and Accurate Credit Transactions Act
of 2003 (``FACT Act'') added a new Section 612(a) to the FCRA that
gives consumers the right to request free annual disclosures once every
12 months. The maximum allowable charge established by this Notice does
not apply to requests made under that provision. The charge does apply
when a consumer who orders a file disclosure has already received a
free annual disclosure and does not otherwise qualify for an additional
free disclosure.
The Commission considers the $8.00 amount referred to in paragraph
(1)(A)(i) of Section 612(f) to be the baseline for the effective
ceiling on reasonable charges dating from the effective date of the
amended FCRA, i.e., September 30, 1997. Each year the Commission
calculates the proportional increase in the Consumer Price Index (using
the most general CPI, which is for all urban consumers, all items) from
September 1997 to September of the current year. The Commission then
determines what modification, if any, from the original base of $8.00
should be made effective on January 1 of the subsequent year, given the
requirement that fractional changes be rounded to the nearest fifty
cents.
Between September 1997 and September 2010, the Consumer Price Index
for all urban consumers and all items increased by 35.51 percent--from
an index value of 161.2 in September 1997 to a value of 218.439 in
September 2010. An increase of 35.51 percent in the $8.00 base figure
would lead to a new figure of $10.84. However, because the statute
directs that the resulting figure be rounded to the nearest $0.50, the
maximum allowable charge should be $11.00.
The Commission therefore determines that the maximum allowable
charge for the year 2011 will be $11.00.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2010-32296 Filed 12-22-10; 8:45 am]
BILLING CODE 6750-01-P