[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR610.2]

[Page 534-538]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 610-FREE ANNUAL FILE DISCLOSURES--Table of Contents
 
Sec. 610.2  Centralized source for requesting annual file disclosures 
from nationwide consumer reporting agencies.

    (a) Purpose. The purpose of the centralized source is to enable 
consumers to make a single request to obtain annual file disclosures 
from all nationwide consumer reporting agencies, as required under 
section 612(a) of the Fair Credit Reporting Act, 15 U.S.C. 1681j(a).
    (b) Establishment and operation. All nationwide consumer reporting 
agencies shall jointly design, fund, implement, maintain, and operate a 
centralized source for the purpose described in paragraph (a) of this 
section. The centralized source required by this part shall:
    (1) Enable consumers to request annual file disclosures by any of 
the following request methods, at the consumers option:
    (i) A single, dedicated Internet website;
    (ii) A single, dedicated toll-free telephone number; and
    (iii) Mail directed to a single address;
    (2) Be designed, funded, implemented, maintained, and operated in a 
manner that:
    (i) Has adequate capacity to accept requests from the reasonably 
anticipated volume of consumers contacting the centralized source 
through each request method, as determined in accordance with paragraph 
(c) of this section;
    (ii) Collects only as much personally identifiable information as is 
reasonably necessary to properly identify the consumer as required under 
the Fair Credit Reporting Act, section 610(a)(1), 15 U.S.C. 1681h(a)(1), 
and other applicable laws and regulations, and to process the 
transaction(s) requested by the consumer;
    (iii) Provides information through the centralized source website 
and telephone number regarding how to make a request by all request 
methods required under section 610.2(b)(1) of this part; and
    (iv) Provides clear and easily understandable information and 
instructions to consumers, including, but not necessarily limited to:
    (A) Providing information on the progress of the consumers request 
while the consumer is engaged in the process of requesting a file 
disclosure;
    (B) For a website request method, providing access to a ``help'' or 
``frequently asked questions'' screen, which includes specific 
information that consumers might reasonably need to request file 
disclosures, the answers to questions that consumers might reasonably 
ask, and instructions whereby a consumer may file a complaint with the 
centralized source and with the Federal Trade Commission;
    (C) In the event that a consumer requesting a file disclosure 
through the centralized source cannot be properly identified in 
accordance with the Fair Credit Reporting Act, section 610(a)(1), 15 
U.S.C. 1681h(a)(1), and other applicable laws and regulations, providing 
a statement that the consumers identity cannot be verified; and 
directions on how to complete the request, including

[[Page 535]]

what additional information or documentation will be required to 
complete the request, and how to submit such information; and
    (D) A statement indicating that the consumer has reached the website 
or telephone number operated by the national credit reporting agencies 
for ordering free annual credit reports, as required by federal law; and
    (3) Make available to consumers a standardized form established 
jointly by the nationwide consumer reporting agencies, which consumers 
may use to make a request for an annual file disclosure, either by mail 
or on the Internet website required under section 610.2(b)(1) of this 
part, from the centralized source required by this part. The form 
provided at 16 CFR Part 698, Appendix D, may be used to comply with this 
section.
    (c) Requirement to anticipate. The nationwide consumer reporting 
agencies shall implement reasonable procedures to anticipate, and to 
respond to, the volume of consumers who will contact the centralized 
source through each request method, to request, or attempt to request, a 
file disclosure, including developing and implementing contingency plans 
to address circumstances that are reasonably likely to occur and that 
may materially and adversely impact the operation of the nationwide 
consumer reporting agency, a centralized source request method, or the 
centralized source.
    (1) The contingency plans required by this section shall include 
reasonable measures to minimize the impact of such circumstances on the 
operation of the centralized source and on consumers contacting, or 
attempting to contact, the centralized source.
    (i) Such reasonable measures to minimize impact shall include, but 
are not necessarily limited to:
    (A) To the extent reasonably practicable under the circumstances, 
providing information to consumers on how to use another available 
request method;
    (B) To the extent reasonably practicable under the circumstances, 
communicating, to a consumer who attempts but is unable to make a 
request, the fact that a condition exists that has precluded the 
centralized source from accepting all requests, and the period of time 
after which the centralized source is reasonably anticipated to be able 
to accept the consumers request for an annual file disclosure; and
    (C) Taking all reasonable steps to restore the centralized source to 
normal operating status as quickly as reasonably practicable under the 
circumstances.
    (ii) Reasonable measures to minimize impact may also include, as 
appropriate, collecting request information but declining to accept the 
request for processing until a reasonable later time, provided that the 
consumer is clearly and prominently informed, to the extent reasonably 
practicable under the circumstances, of when the request will be 
accepted for processing.
    (2) A nationwide consumer reporting agency shall not be deemed in 
violation of section 610.2(b)(2)(i) of this part if a centralized source 
request method is unavailable to accept requests for a reasonable period 
of time for purposes of conducting maintenance on the request method, 
provided that the other required request methods remain available during 
such time.
    (d) Disclosures required. If a nationwide consumer reporting agency 
has the ability to provide a consumer report to a third party relating 
to a consumer, regardless of whether the consumer report is owned by 
that nationwide consumer reporting agency or by an associated consumer 
reporting agency, that nationwide consumer reporting agency shall, upon 
proper identification in compliance with section 610(a)(1) of the Fair 
Credit Reporting Act, 15 U.S.C. 1681h(a)(1), provide an annual file 
disclosure to such consumer if the consumer makes a request through the 
centralized source.
    (e) High Request volume and extraordinary request volume.
    (1) High request volume. Provided that a nationwide consumer 
reporting agency has implemented reasonable procedures developed in 
accordance with paragraph (c) of this section, entitled ``requirement to 
anticipate,'' the nationwide consumer reporting agency shall not be 
deemed in violation of paragraph (b)(2)(i) of this section for

[[Page 536]]

any period of time in which a centralized source request method, the 
centralized source, or the nationwide consumer reporting agency 
experiences high request volume, if the nationwide consumer reporting 
agency:
    (i) Collects all consumer request information and delays accepting 
the request for processing until a reasonable later time; and
    (ii) Clearly and prominently informs the consumer of when the 
request will be accepted for processing.
    (2) Extraordinary request volume. Provided that the nationwide 
consumer reporting agency has implemented reasonable procedures 
developed in compliance with paragraph (c) of this section, entitled 
``requirement to anticipate,'' the nationwide consumer reporting agency 
shall not be deemed in violation of paragraph (b)(2)(i) of this section 
for any period of time during which a particular centralized source 
request method, the centralized source, or the nationwide consumer 
reporting agency experiences extraordinary request volume.
    (f) Information use and disclosure. Any personally identifiable 
information collected from consumers as a result of a request for annual 
file disclosure, or other disclosure required by the Fair Credit 
Reporting Act, made through the centralized source, may be used or 
disclosed by the centralized source or a nationwide consumer reporting 
agency only:
    (1) To provide the annual file disclosure or other disclosure 
required under the FCRA requested by the consumer;
    (2) To process a transaction requested by the consumer at the same 
time as a request for annual file disclosure or other disclosure;
    (3) To comply with applicable legal requirements, including those 
imposed by the Fair Credit Reporting Act and this part; and
    (4) To update personally identifiable information already maintained 
by the nationwide consumer reporting agency for the purpose of providing 
consumer reports, provided that the nationwide consumer reporting agency 
uses and discloses the updated personally identifiable information 
subject to the same restrictions that would apply, under any applicable 
provision of law or regulation, to the information updated or replaced.
    (g) Communications provided by centralized source.
    (1) Any communications or instructions, including any advertising or 
marketing, provided through the centralized source shall not interfere 
with, detract from, contradict, or otherwise undermine the purpose of 
the centralized source stated in paragraph (a) of this section.
    (2) Examples of interfering, detracting, inconsistent, and/or 
undermining communications include:
    (i) A website that contains pop-up advertisements or other offers or 
promotions that hinder the consumers ability to complete an online 
request for an annual file disclosure;
    (ii) Centralized source materials that represent, expressly or by 
implication, that a consumer must purchase a paid product in order to 
receive or to understand the annual file disclosure;
    (iii) Centralized source materials that represent, expressly or by 
implication, that annual file disclosures are not free, or that 
obtaining an annual file disclosure will have a negative impact on the 
consumers credit standing; and
    (iv) Centralized source materials that falsely represent, expressly 
or by implication, that a product or service offered ancillary to 
receipt of a file disclosure, such as a credit score or credit 
monitoring service, is free, or fail to clearly and prominently disclose 
that consumers must cancel a service, advertised as free for an initial 
period of time, to avoid being charged, if such is the case.
    (h) Effective date. Sections 610.1 and 610.2 shall become effective 
on December 1, 2004.
    (i) Transition.
    (1) Regional rollout. The centralized source required by this part 
shall be made available to consumers in a cumulative manner, as follows:
    (i) For consumers residing in Alaska, Arizona, California, Colorado, 
Hawaii, Idaho, Montana, New Mexico, Nevada, Oregon, Utah, Washington, 
and Wyoming, the centralized source shall become available on or before 
December 1, 2004;

[[Page 537]]

    (ii) For consumers residing in Illinois, Indiana, Iowa, Kansas, 
Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South 
Dakota, and Wisconsin, the centralized source shall become available on 
or before March 1, 2005;
    (iii) For consumers residing in Alabama, Arkansas, Florida, Georgia, 
Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, 
and Texas, the centralized source shall become available on or before 
June 1, 2005; and
    (iv) For all other consumers, including consumers residing in 
Connecticut, Delaware, District of Columbia, Maine, Maryland, 
Massachusetts, New Hampshire, New Jersey, New York, North Carolina, 
Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, and all 
United States territories and possessions, the centralized source shall 
become available on or before September 1, 2005.
    (2) High request volume during transition.
    (i) During the period of December 1, 2004 through December 7, 2004, 
high request volume shall mean the following:
    (A) For an individual request method: High request volume occurs 
when the number of consumers contacting or attempting to contact the 
centralized source through the request method in any 24-hour period is 
more than 115% of the daily total number of consumers that were 
reasonably anticipated to contact the centralized source, in compliance 
with paragraph (c) of this section, through that request method.
    (B) For the centralized source as a whole: High request volume 
occurs when the number of consumers contacting or attempting to contact 
the centralized source in any 24-hour period is more than 115% of the 
daily total number of consumers that were reasonably anticipated to 
contact the centralized source, in compliance with paragraph (c) of this 
section, through any request method.
    (C) For a nationwide consumer reporting agency: High request volume 
occurs when the number of consumers contacting or attempting to contact 
the nationwide consumer reporting agency to request file disclosures in 
any 24-hour period is more than 115% of the daily total number of 
consumers that were reasonably anticipated to contact that nationwide 
consumer reporting agency to request file disclosures, in compliance 
with paragraph (c) of this section.
    (ii) During the period of December 8, 2004 through August 31, 2005, 
high request volume shall mean the following:
    (A) For an individual request method: High request volume occurs 
when the number of consumers contacting or attempting to contact the 
centralized source through the request method in any 24-hour period is 
more than 115 % of the rolling 7-day daily average number of consumers 
who contacted or attempted to contact the centralized source to request 
file disclosures through that request method.
    (B) For the centralized source as a whole: High request volume 
occurs when the number of consumers contacting or attempting to contact 
the centralized source in any 24-hour period is more than 115% of the 
rolling 7-day daily average number of consumers who contacted or 
attempted to contact the centralized source to request file disclosures 
through any request method.
    (C) For a nationwide consumer reporting agency: High request volume 
occurs when the number of consumers contacting or attempting to contact 
the nationwide consumer reporting agency to request file disclosures in 
any 24-hour period is more than 115% of the rolling 7-day daily average 
of consumers who requested any type of file disclosure from that 
nationwide consumer reporting agency.
    (3) Extraordinary request volume during transition.
    (i) During the period of December 1, 2004 through December 7, 2004, 
extraordinary request volume shall mean the following:
    (A) For an individual request method: Extraordinary request volume 
occurs when the number of consumers contacting or attempting to contact 
the centralized source through the request method in any 24-hour period 
is more than 175% of the daily total number of consumers that were 
reasonably anticipated to contact the centralized source, in compliance 
with paragraph

[[Page 538]]

(c) of this section, through that request method.
    (B) For the centralized source as a whole: Extraordinary request 
volume occurs when the number of consumers contacting or attempting to 
contact the centralized source in any 24-hour period is more than 175% 
of the daily total number of consumers that were reasonably anticipated 
to contact the centralized source, in compliance with paragraph (c) of 
this section, through any request method.
    (C) For a nationwide consumer reporting agency: Extraordinary 
request volume occurs when the number of consumers contacting or 
attempting to contact the nationwide consumer reporting agency to 
request file disclosures in any 24-hour period is more than 175% of the 
daily total number of consumers that were reasonably anticipated to 
contact that nationwide consumer reporting agency to request their file 
disclosures, in compliance with paragraph (c) of this section.
    (ii) During the period of December 8, 2004 through August 31, 2005, 
extraordinary request volume shall mean the following:
    (A) For an individual request method: Extraordinary request volume 
occurs when the number of consumers contacting or attempting to contact 
the centralized source through the request method in a 24-hour period is 
more than 175% of the rolling 7-day daily average number of consumers 
who contacted or attempted to contact the centralized source to request 
file disclosures through that request method.
    (B) For the centralized source as a whole: Extraordinary request 
volume occurs when the number of consumers contacting or attempting to 
contact the centralized source in a 24-hour period is more than 175% of 
the rolling 7-day daily average number of consumers who contacted or 
attempted to contact the centralized source to request file disclosures 
through any request method.
    (C) For a nationwide consumer reporting agency: Extraordinary 
request volume occurs when the number of consumers contacting or 
attempting to contact the nationwide consumer reporting agency to 
request file disclosures in a 24-hour period is more than 175% of the 
rolling 7-day daily average of consumers who requested any type of file 
disclosure from that nationwide consumer reporting agency.