FTC Seeks Comments On Proposed Changes To FCRA Rules

Ballard Spahr LLP

Ballard Spahr LLP

The FTC has issued five notices of proposed rulemaking seeking comments on changes to five rules that implement the Fair Credit Reporting Act.  Comments will be due no later than 75 days after the date the NPRMs are published in the Federal Register.

The Dodd-Frank Act transferred the FTC’s rulemaking authority under parts of the FCRA to the CFPB.  It also narrowed the FTC’s rulemaking authority with respect to other FCRA rules to cover only motor vehicle dealers that are predominately engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.  For each of the five rules listed below, the FTC has proposed amendments to reflect their limited coverage.  In addition, in connection with the FTC’s periodic review of its rules and guides, each NPRM contains a series of questions on which the FTC seeks comments.

The NPRMs propose changes to the following rules:

  • 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.
  • Affiliate Marketing Rule, which gives consumers the right to restrict the use of information obtained from an affiliate to solicit a consumer.
  • Furnisher Rule, which requires entities that furnish consumer information to CRAs to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of such information.
  • Pre-screen Opt-Out Notice Rule, which outlines requirements for the use of consumer report information to make unsolicited credit or insurance offers to consumers.  (The NPRM would also reinstate a previously rescinded model prescreen opt-out notice.)
  • Risk-Based Pricing Rule, which generally requires those who use consumer report information to offer less favorable APRs to consumers to provide a notice about the use of such information.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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