Federal Deposit
Insurance Corporation

Fair Credit Reporting Medical Information Regulations

Comments Submitted to the Federal Banking Agencies

by the

Privacy Rights Clearinghouse

July 11, 2005

Robert E. Feldman, Executive Secretary
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, D.C. 20429
 

RE: Interim Final Rules -- Fair Credit Reporting Medical Information Regulations – RIN 3064-AC81
                                        

Dear Mr. Feldman:

We submit these comments independently in order to encourage the agencies to develop a public education program on when and how creditors, employers, and insurers can use medical information

The Privacy Rights Clearinghouse is a nonprofit consumer education and advocacy organization based in San Diego, CA, and established in 1992. The PRC advises consumers on a variety of informational privacy issues, including financial privacy, medical privacy and identity theft, through a series of fact sheets as well as individual counseling available via telephone and e-mail. The PRC represents consumers' interests in legislative and regulatory proceedings on the state and federal levels. www.privacyrights.org

From years of experience communicating directly with consumers, we know that medical privacy is a top priority. A major concern is the secondary use of medical information. For example, many worry that a medical condition, even one from years past and successfully treated, can harm one’s job prospects and employment security, or eliminate eligibility for fairly priced insurance or credit. Others mistakenly believe that medical information by its very nature is subject to universal privacy protection and are unaware of the many situations in which they have little or no privacy protection.

There is, in short, a serious need for public education about how medical information can be collected and used in all circumstances. The agencies’ implementation of the FACT Act medical privacy protections provides an excellent opportunity for public education on when and how creditors, employers, and insurers can use medical information. The proposed regulations and the IFR provide good examples of when and how creditors may use medical information. However, with multi-agency numbering systems and technical language, the regulations are difficult to follow and therefore inaccessible to most consumers.

We suggest the agencies adopt plain language consumer guides about medical information and credit to be published on each agency’s web site as well as the web site for the federal Financial Literacy and Education Commission www.mymoney.gov The agencies’ educational materials should address such topics as:

• The entities covered by the FACT Act medical privacy rules.
• Situations in which employers or insurers can ask for medical information.
• Limits on the collection and use of medical information for credit determinations.
• The effect of voluntarily supplying medical information.
• How and where to complain about a suspected violation of the rule.

In earlier comments on the proposed medical privacy rules, www.privacyrights.org/ar/MedFACTA.htm, we suggested that mandatory training and a comprehensive compliance program is necessary for consumers to reap the benefits intended by Congress. We reiterate that opinion here. The FACT Act includes some important safeguards for medical information. However, these rights are only valuable if: (1) consumers are aware of their rights, (2) bank employees and others involved in credit decisions are adequately trained, and (3) the agencies’ examiners are alert to potential abuses.

Again, we appreciate the opportunity to comment, and we endorse the joint comments submitted by the HPP.

Sincerely,