FTC proposing FCRA changes

The Federal Trade Commission (FTC) is seeking comment on proposed changes that would bring several rules implementing parts of the Fair Credit Reporting Act (FCRA) in line with the Dodd-Frank Act.

The FTC said the proposed changes would clarify that the regulator’s FCRA rules apply only to motor vehicle dealers. The agency shares oversight of FCRA with the Consumer Financial Protection Bureau.

The proposed changes would apply to:

• The Address Discrepancy rule, which outlines the obligations of users of consumer reports when they receive a notice of address discrepancy from a nationwide consumer reporting agency (CRA);
• The Affiliate Marketing rule, which gives consumers the right to restrict a person from using certain information obtained from an affiliate to make solicitations to the consumer;
• The Furnisher rule, which requires entities that furnish information to CRAs to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of the information relating to consumers provided to a CRA;
• The Pre-screen Opt-Out Notice rule, which outlines requirements for those who use consumer report information to make unsolicited credit or insurance offers to consumers; and
• The Risk-Based Pricing rule, which requires those who use information from a consumer report to offer less favorable terms to consumers to provide them with a notice about the use of such data.

As it is proposing changes to the five rules, the FTC said it would take advantage of the opportunity to request comment on their effectiveness.

Specifically, the FTC said it wanted feedback on:

• Whether there is a continuing need for specific provisions of each rule;
• The benefits each rule has provided to consumers;
• What modifications, if any, should be made to each rule to benefit consumers and businesses; and
• What modifications, if any, should be made to each rule to account for changes in relevant technology or economic conditions.

Comments are due 75 days after publication in the Federal Register. Comments will be posted to Regulations.gov.