FDIC Federal Register Citations

[Federal Register: March 22, 2006 (Volume 71, Number 55)]

[Proposed Rules]

[Page 14419-14425]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr22mr06-23]

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 41

[Docket No. 06-04]

RIN 1557-AC89

FEDERAL RESERVE SYSTEM

12 CFR Part 222

[Docket No. R-1250]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 334

RIN 3064-AC99

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 571

[No. 2006-06]

RIN 1550-AC01

NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 717

FEDERAL TRADE COMMISSION

16 CFR Parts 660 and 661

RIN 3084-AA94

Interagency Advance Notice of Proposed Rulemaking: Procedures to Enhance the Accuracy and Integrity of Information

Furnished to Consumer Reporting Agencies Under Section 312 of the Fair and Accurate Credit Transactions Act

AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve

System (Board); Federal Deposit Insurance Corporation (FDIC); Office of Thrift Supervision, Treasury (OTS); National

Credit Union Administration (NCUA); and Federal Trade Commission (FTC).

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The OCC, Board, FDIC, OTS, NCUA, and FTC (the Agencies)

request comment to gather information useful for developing the

guidelines and regulations required by section 312 of the Fair and

Accurate Credit Transactions Act (FACT Act). Pursuant to section 312,

the Agencies, acting in consultation and coordination, must: Establish

guidelines for use by persons that furnish information to consumer

reporting agencies (furnishers) regarding the accuracy and integrity of

the consumer information that they furnish to those agencies; and

prescribe regulations that require furnishers to establish reasonable

policies and procedures for implementing the guidelines. Section 312

also requires the Agencies jointly to prescribe regulations that

identify the circumstances under which a furnisher shall be required to

reinvestigate a dispute concerning the accuracy of information

contained in a consumer report on a consumer based on a direct request

of the consumer.

DATES: Comments must be submitted by May 22, 2006.

ADDRESSES: Because paper mail in the Washington DC area and at the

Agencies is subject to delay, please consider submitting your comments

by e-mail. Commenters are encouraged to use the title ``Procedures to

Enhance the Accuracy and Integrity of Information Furnished to Consumer

Reporting Agencies'' to facilitate the organization and distribution of

the comments. Comments submitted to one or more of the Agencies will be

made available to all of the Agencies. Interested parties are invited

to submit comments to:

OCC: You should include OCC and Docket Number 06-04 in your

comment. You may submit comments by any of the following methods:

Federal eRulemaking Portal: http://www.regulations.gov.

Follow the instructions for submitting comments.

OCC Web Site: http://www.occ.treas.gov. Click on ``Contact

the OCC,'' scroll down and click on ``Comments on proposed

regulations.''

E-mail Address: regs.comments@occ.treas.gov.

Fax: (202) 874-4448.

Mail: Office of the Comptroller of the Currency, 250 E

Street, SW., Mail Stop 1-5, Washington, DC 20219.

Hand Delivery/Courier: 250 E Street, SW., Attn: Public

Information Room, Mail Stop 1-5, Washington, DC 20219.

Instructions: All submissions received must include the agency name

(OCC) and docket number or Regulatory Information Number (RIN) for this

rulemaking. In general, the OCC will enter all comments received into

the docket without change, including any business or personal

information that you provide. You may review comments and other related

materials by any of the following methods:

Viewing Comments Personally: You may personally inspect

and photocopy comments at the OCC's Public Information Room, 250 E

Street, SW., Washington, DC. You can make an appointment to inspect

comments by calling (202) 874-5043.

Viewing Comments Electronically: You may request e-mail or

CD-ROM copies of comments that the OCC has received by contacting the

OCC's Public Information Room at regs.comments@occ.treas.gov.

Docket: You may also request available background

documents and project summaries using the methods described above.

Board: You may submit comments, identified by Docket No. R-1250, by

any of the following methods:

Agency Web site: http://www.federalreserve.gov Follow the instructions for

submitting comments at http://www.federalreserve.gov/.

. Federal eRulemaking Portal: http://www.regulations.gov.

Follow the instructions for submitting comments.

E-mail: regs.comments@federalreserve.gov. Include docket

number in the subject line of the message.

FAX: (202) 452-3819 or (202) 452-3102.

Mail: Jennifer J. Johnson, Secretary, Board of Governors

of the Federal Reserve System, 20th Street and Constitution Avenue,

NW., Washington, DC 20551.

All public comments are available from the Board's Web site at

http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as

submitted, except as necessary for technical

[[Page 14420]]

reasons. Accordingly, your comments will not be edited to remove any

identifying or contact information. Public comments may also be viewed

electronically or in paper in Room MP-500 of the Board's Martin

Building (20th and C Streets, NW.) between 9 a.m. and 5 p.m. on

weekdays.

FDIC: You may submit comments, identified by RIN number by any of

the following methods:

Agency Web site: http://www.fdic.gov/regulations/laws/federal/propose.html.

Follow instructions for submitting comments on

the Agency Web site.

Federal eRulemaking Portal: http://www.regulations.gov.

Follow the instructions for submitting comments.

E-mail: Comments@FDIC.gov. Include the RIN number in the

subject line of the message.

Mail: Robert E. Feldman, Executive Secretary, Attention:

Comments, Federal Deposit Insurance Corporation, 550 17th Street, NW.,

Washington, DC 20429.

Hand Delivery/Courier: Guard station at the rear of the

550 17th Street Building (located on F Street) on business days between

7 a.m. and 5 p.m.

Instructions: All submissions received must include the

agency name and RIN for this rulemaking. All comments received will be

posted without change to http://www.fdic.gov/regulations/laws/federal/propose.html

including any personal information provided. Comments may

be inspected at the FDIC Public Information Center, Room E-1002, 3502

North Fairfax Drive, Arlington, VA 22226, between 9 a.m. and 5 p.m. on

business days.

OTS: You may submit comments, identified by number 2006-06, by any

of the following methods:

Federal eRulemaking Portal: http://www.regulations.gov.

Follow the instructions for submitting comments.

E-mail address: regs.comments@ots.treas.gov. Please

include number 2006-06 in the subject line of the message and include

your name and telephone number in the message.

Fax: (202) 906-6518.

Mail: Regulation Comments, Chief Counsel's Office, Office

of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552,

Attention: No. 2006-06.

Hand Delivery/Courier: Guard's Desk, East Lobby Entrance,

1700 G Street, NW., from 9 a.m. to 4 p.m. on business days, Attention:

Regulation Comments, Chief Counsel's Office, Attention: No. 2006-06.

Instructions: All submissions received must include the agency name

and docket number or Regulatory Information Number (RIN) for this

rulemaking. All comments received will be posted without change to the

OTS Internet site at http://www.ots.treas.gov/pagehtml.cfm?catNumber=67&an=1

, including any personal information provided.

Docket: For access to the docket to read background documents or

comments received, go to http://www.ots.treas.gov/pagehtml.cfm?catNumber=67&an=1.

In addition, you may inspect comments

at the Public Reading Room, 1700 G Street, NW., by appointment. To make

an appointment for access, call (202) 906-5922, send an e-mail to

public.info@ots.treas.gov, or send a facsimile transmission to (202)

906-7755. (Prior notice identifying the materials you will be

requesting will assist us in serving you.) We schedule appointments on

business days between 10 a.m. and 4 p.m. In most cases, appointments

will be available the next business day following the date we receive a

request.

NCUA: You may submit comments by any of the following methods

(please send comments by one method only):

Federal eRulemaking Portal: http://www.regulations.gov.

Follow the instructions for submitting comments.

NCUA Web Site: http://www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/proposed_regs.html.

Follow the instructions for submitting comments.

E-mail: Address to regcomments@ncua.gov. Include ``[Your

name] Comments on Advanced Notice of Proposed Rulemaking Part 717, Fair

Credit Reporting--Procedures to Enhance the Accuracy and Integrity of

Information Furnished to Consumer Reporting Agencies'' in the e-mail

subject line.

Fax: (703) 518-6319. Use the subject line described above

for e-mail.

Mail: Address to Mary Rupp, Secretary of the Board,

National Credit Union Administration, 1775 Duke Street, Alexandria, VA

22314-3428.

Hand Delivery/Courier: Address to Mary Rupp, Secretary of

the Board, National Credit Union Administration. Deliver to guard

station in the lobby of 1775 Duke Street, Alexandria, VA 22314-3428, on

business days between 8 a.m. and 5 p.m.

All public comments are available on the agency's Web site at

http://www.ncua.gov/RegulationsOpinionsLaws/comments as submitted,

except as may not be possible for technical reasons. Public comments

will not be edited to remove any identifying or contact information.

Paper copies of comments may be inspected in NCUA's law library, at

1775 Duke Street, Alexandria, VA 22314, by appointment weekdays between

9 a.m. and 3 p.m. To make an appointment, call (703) 518-6546 or send

an e-mail to OGCMail@ncua.gov.

FTC: Comments should refer to ``Procedures to Enhance the Accuracy

and Integrity of Information Furnished to Consumer Reporting Agencies,

Project No. R611017,'' and may be submitted by any of the following

methods. Comments containing confidential material must be filed in

paper form, must be clearly labeled ``Confidential,'' and must comply

with Commission Rule 4.9(c).\1\

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\1\ The comment must be accompanied by an explicit request for

confidential treatment, including the factual and legal basis for

the request, and must identify the specific portions of the comment

to be withheld from the public record. The request will be granted

or denied by the Commission's General Counsel, consistent with

applicable law and the public interest. See Commission Rule 4.9(c),

16 CFR 4.9(c).

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E-mail: https://secure.commentworks.com/ftc-FACTAfurnishers.

To ensure that the Commission considers an electronic

comment, you must file it on the Web-based form found at this Web link

and follow the instructions on that form.

Federal eRulemaking Portal: http://www.regulations.gov.

You may visit this Web site to read this request for public comment and

to file an electronic comment. The Commission will consider all

comments that regulations.gov forwards to it.

Mail or Hand Delivery: A comment filed in paper form

should refer, both in the text and on the envelope, to the name and

project number identified above, and should be mailed or delivered to

the following address: Federal Trade Commission/Office of the

Secretary, Room 159-H (Annex C), 600 Pennsylvania Avenue, NW.,

Washington, DC 20580.

The FTC Act and other laws the Commission administers permit the

collection of public comments to consider and use in this proceeding as

appropriate. All timely and responsive public comments, whether filed

in paper or electronic form, will be considered by the Commission, and

will be available to the public on the FTC Web site, to the extent

practicable, at http://www.ftc.gov/os/publiccomments.htm. As a matter

of discretion, the FTC makes every effort to remove home contact

information for individuals from the public comments it receives before

placing those comments on the FTC Web site. More information, including

routine uses permitted by the

[[Page 14421]]

Privacy Act, may be found in the FTC's privacy policy, at http://www.ftc.gov/ftc/privacy.htm

.

FOR FURTHER INFORMATION CONTACT: OCC: Stephen Van Meter, Assistant

Director, Community and Consumer Law Division, (202) 874-5750; Patrick

T. Tierney, Senior Attorney, Legislative and Regulatory Activities

Division, (202) 874-5090; or Pamela Mount, National Bank Examiner,

Compliance Department, (202) 874-4428, Office of the Comptroller of the

Currency, 250 E Street, SW., Washington, DC 20219.

Board: David A. Stein, Counsel; Ky Tran-Trong, Senior Attorney,

Division of Consumer and Community Affairs, (202) 452-3667 or (202)

452-2412; or Andrew Miller, Counsel, Legal Division, (202) 452-3428,

Board of Governors of the Federal Reserve System, 20th and C Streets,

NW., Washington, DC 20551.

FDIC: David P. Lafleur, Policy Analyst, (202) 898-6569, or John

Jackwood, Senior Policy Analyst, (202) 898-3991, Division of

Supervision and Consumer Protection; Richard M. Schwartz, Counsel,

(202) 898-7424, or Richard B. Foley, Counsel, (202) 898-3784, Legal

Division; 550 17th St., NW., Washington, DC 20429.

OTS: Glenn S. Gimble, Senior Project Manager, Operation Risk, (202)

906-7158; or Richard Bennett, Counsel, Regulations and Legislation

Division, (202) 906-7409, at 1700 G Street, NW., Washington, DC 20552.

NCUA: Regina Marie Metz, Esq., (703) 518-6561, fax (703) 837-2785,

e-mail rmetz@ncua.gov, 1775 Duke St., Alexandria, VA 22314.

FTC: Ronald G. Isaac, or Clarke W. Brinckerhoff, Attorneys, (202)

326-3224, Bureau of Consumer Protection, Federal Trade Commission, 600

Pennsylvania Avenue NW., Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

I. Background

Consumer Reporting in the United States

The consumer reporting system in the United States is based largely

on the submission of information by creditors and others to nationwide

consumer reporting agencies that collect and maintain consumer

information. There are also a number of smaller consumer reporting

agencies that operate on a regional or local basis. These smaller

agencies typically contract for the right to house some or all of the

consumer data that they own on the computer systems of one or more of

the major consumer reporting agencies. Consumer reporting agencies sell

the information in their files to creditors and other subscribers who

may be the users of the information, or who may be resellers that buy

consumer reports to sell to other users.

Consumer reporting agencies maintain databases that contain

detailed information about consumers' transactions. This information is

widely used to determine consumers' eligibility for credit, employment,

insurance, rental housing, and other products and services, as well as

the terms on which credit, insurance, and other products and services

may be offered. In addition to these general purpose consumer reporting

agencies, there are consumer reporting agencies that collect and

maintain data pertaining only to certain specialized activities, such

as employment history, residential or tenant history, medical records

or payments, check writing histories, or insurance claims.

Most of the information that consumer reporting agencies collect

and maintain is provided voluntarily by furnishers. Furnishers may

include such entities as banks, credit unions, finance companies,

employers, insurance companies, doctors and hospitals, debt collectors,

and landlords. Not all furnishers regularly provide information about

consumers to consumer reporting agencies. Some furnishers provide only

negative information, such as information about delinquent payments or

loan defaults. Some may provide information to one or two of the

nationwide consumer reporting agencies but not to all of them. Others

may report only to one of the specialized consumer reporting agencies

(such as a repository of check writing histories).

Because consumer reports are used to determine whether, and in some

cases on what terms, consumers may be eligible for credit, insurance,

employment, rental housing, and other important products, services, or

benefits, the accuracy of the information in those reports is

important. A number of studies have examined the accuracy of consumer

report information.\2\ While not purporting to be exhaustive or

conclusive, these studies have identified a number of potential issues

that may affect the accuracy of consumer report information, including

stale account information, furnishing only negative information about

an account, inaccurate or incomplete public record data, inaccurate or

incomplete collection account data, and unreported credit limits.\3\

These potential credit file issues may lower a consumer's credit score,

decrease credit availability, and increase the cost of credit for

certain consumers, particularly those who are new to the credit system,

have very little credit, or have relatively low credit scores.

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\2\ The Agencies are familiar with the details of these studies

and, as discussed below, invite commenters to provide information in

addition to the studies regarding the accuracy and integrity of

consumer report information. See Robert B. Avery, Raphael W. Bostic,

Paul S. Calem & Glenn B. Canner, An Overview of Consumer Data and

Credit Reporting, Federal Reserve Bulletin, vol. 89, at 47-73

(February 2003); Robert B. Avery, Paul S. Calem, Glenn B. Canner &

Shannon C. Mok, Credit Report Accuracy and Access to Credit, Federal

Reserve Bulletin, vol. 90, at 297-322 (Summer 2004); Consumer

Federation of America & National Credit Reporting Association,

Credit Score Accuracy and Implications for Consumers (December 17,

2002), at http://www.consumerfed.org/pdfs/121702CFA_NCRA_Credit_Score_Report_Final.pdf

(last visited February 13, 2006). See also

footnote 11 in this notice describing the FTC's ongoing study of the

accuracy and completeness of information contained in consumer

reports prepared or maintained by consumer reporting agencies and

the methods for improving the accuracy and completeness of such

information and its first interim report to Congress. In addition,

the Board issued a Request for Information in August 2004 in

connection with a study on investigations of disputed consumer

information reported to consumer reporting agencies. 69 FR 48494

(August 10, 2004). The Agencies have considered the responses to the

Request for Information in developing this advance notice of

proposed rulemaking.

\3\ Id.

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Existing FCRA Responsibilities of Furnishers

The Fair Credit Reporting Act (FCRA) \4\ contains a number of

provisions designed to enhance the accuracy and integrity of data in

consumer reports, including the provisions to be implemented through

the guidelines and regulations that are the subject of this Advance

Notice of Proposed Rulemaking.

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\4\ 15 U.S.C. 1681-1681x.

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The FCRA contains standards for the collection, communication, and

use of information bearing on a consumer's credit worthiness, credit

standing, credit capacity, character, general reputation, personal

characteristics, or mode of living. Section 623 of the FCRA describes

the responsibilities of persons that furnish information to consumer

reporting agencies.\5\ A person is prohibited from furnishing

information relating to a consumer to any consumer reporting agency if

the person knows or has reasonable cause to believe that the

information is inaccurate.\6\ Section 623

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also requires furnishers, among other things, to correct and update

information furnished about a consumer to any consumer reporting agency

in certain circumstances, to provide consumer reporting agencies with

notice of certain consumer disputes and of accounts closed voluntarily

by consumers, to provide credit reporting agencies with information

regarding certain delinquent accounts, and to have in place reasonable

procedures to prevent the refurnishing of information that has been

blocked as a result of identity theft.\7\

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\5\ 15 U.S.C. 1681s-2.

\6\ 15 U.S.C. 1681s-2(a)(1). A furnisher that clearly and

conspicuously provides consumers with an address for submitting

notices of dispute is subject to a different accuracy standard. If a

consumer writes to that address to challenge the accuracy of any

furnished information, and the information is, in fact, inaccurate,

the furnisher must report only the correct information to consumer

reporting agencies in the future.

\7\ 15 U.S.C. 1681s-2(a)(2)-(6).

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A furnisher that is notified by a consumer reporting agency that

information it furnished has been disputed by a consumer pursuant to

section 611 \8\ of the FCRA must:

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\8\ Section 611 of the FCRA generally permits a consumer to

dispute the completeness or accuracy of any item in the consumer's

credit file directly with a consumer reporting agency. Within five

business days after the consumer reporting agency receives a notice

of dispute from a consumer, the consumer reporting agency is

required to provide notification of the dispute to any person who

provided any item of disputed information. This notification of

dispute must include all relevant information received from the

consumer. Consumer reporting agencies must, free of charge, conduct

a reasonable reinvestigation to determine whether the disputed

information is inaccurate and record the current status of the

disputed information, or delete the item from the consumer's credit

file before the end of the 30-day period beginning on the date that

the consumer reporting agency receives the notice of dispute from

the consumer. 15 U.S.C. 1681i.

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Investigate the dispute;

Review all relevant information provided by the consumer

reporting agency about the dispute;

Report its findings to the consumer reporting agency;

Provide corrected information to all nationwide consumer

reporting agencies that received the information, if the investigation

shows the information to be incomplete or inaccurate; and

Promptly modify, delete, or permanently block the

reporting to a consumer reporting agency of an item of information

disputed by a consumer that is found to be inaccurate, incomplete, or

cannot be verified after an investigation.\9\

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\9\ 15 U.S.C. 1681s-2(b). The furnisher must complete these

steps within the time period that Section 611 of the FCRA sets out

for the consumer reporting agency to resolve the dispute, which is,

ordinarily, 30 days after receipt of a notice of dispute from the

consumer.

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FACT Act Provisions To Be Implemented Through This Rulemaking

The FACT Act, enacted on December 4, 2003,\10\ amended the FCRA to

enhance the ability of consumers to combat identity theft, increase the

accuracy of consumer reports, restrict the use of medical information

in credit eligibility determinations, and allow consumers to exercise

greater control regarding the type and amount of solicitations they

receive.

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\10\ Public Law No. 108-159, 117 Stat. 1952.

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Section 312 of the FACT Act amends section 623 of the FCRA and

generally requires the Agencies to issue guidelines for use by

furnishers regarding the accuracy and integrity of the information that

they furnish to consumer reporting agencies and prescribe regulations

requiring furnishers to establish reasonable policies and procedures

for implementing the guidelines. Section 312 also requires the Agencies

to issue regulations identifying the circumstances under which a

furnisher must reinvestigate disputes about the accuracy of information

contained in consumer reports based on a direct request from a

consumer.

Guidelines and Regulations Concerning the Accuracy and Integrity of

Information That Furnishers Provide to Consumer Reporting Agencies

Section 312(a) of the FACT Act adds a new subsection (e) to section

623 of the FCRA. Section 623(e)(1)(A) of the FCRA requires the Agencies

to establish and maintain guidelines for use by each furnisher

regarding the accuracy and integrity of the consumer information that

the furnisher provides to consumer reporting agencies.\11\ The Agencies

are required to update these guidelines as often as necessary. Section

623(e)(1)(B) of the FCRA requires each Agency to prescribe regulations

requiring furnishers to establish reasonable policies and procedures

for implementing the guidelines established pursuant to section

623(e)(1)(A). The Agencies must consult and coordinate with one another

so that, to the extent possible, the regulations published by each

Agency are consistent and comparable.

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\11\ The FACT Act also directs the FTC to ``conduct an ongoing

study of the accuracy and completeness of information contained in

consumer reports prepared or maintained by consumer reporting

agencies and methods for improving the accuracy and completeness of

such information.'' See section 319 of the FACT Act. The FTC

submitted its first interim report to Congress on this study on

December 9, 2004; available at http://www.ftc.gov/reports/facta/041209factarpt.pdf

(last visited February 13, 2006).

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Section 623(e)(3) of the FCRA sets forth criteria to be used by the

Agencies in developing the accuracy and integrity guidelines. This

provision directs the Agencies to:

Identify patterns, practices, and specific forms of

activity that can compromise the accuracy and integrity of information

furnished to consumer reporting agencies;

Review the methods (including technological means) used to

furnish consumer information to consumer reporting agencies;

Determine whether furnishers maintain and enforce policies

to assure the accuracy and integrity of information furnished to

consumer reporting agencies; and

Examine the policies and processes employed by furnishers

to conduct reinvestigations and correct inaccurate consumer information

that has been furnished to consumer reporting agencies.

Regulations Concerning the Ability of a Consumer to Dispute Information

Directly With a Furnisher

Section 312(c) of the FACT Act adds a new sub-paragraph (8) to

section 623(a) of the FCRA. Section 623(a)(8) directs the Agencies

jointly to prescribe regulations that identify the circumstances under

which a furnisher is required to reinvestigate a dispute concerning the

accuracy of information contained in a consumer report on the consumer,

based on a direct request by the consumer. In prescribing these

regulations, the Agencies are directed to weigh:

The regulations' benefits to consumers with the costs on

furnishers and the credit reporting system;

The impact on the overall accuracy and integrity of

consumer reports of any such requirements;

Whether direct contact by the consumer with the furnisher

would likely result in the most expeditious resolution of any dispute;

and

The potential impact on the credit reporting process if

credit repair organizations are able to circumvent the provisions in

subparagraph G of section 623(a)(8), which state that the direct

dispute rules shall not apply when credit repair organizations provide

notices of dispute on behalf of consumers.

II. Request for Comments

The Agencies believe that, in advance of proposing guidelines and

rules implementing section 312 of the FACT Act, it is appropriate to

solicit public comment on issues relating to: (1) The criteria in

section 623(e)(3) of the FCRA that the Agencies must consider when

developing accuracy and integrity guidelines; (2) what constitutes

reasonable policies and procedures for implementing the guidelines to

ensure the accuracy and integrity of information that is furnished; and

(3) the considerations in section

[[Page 14423]]

623(a)(8)(B) that the Agencies must weigh when promulgating rules that

identify circumstances when furnishers must reinvestigate disputes

raised directly by consumers.

In particular, the Agencies invite comment, together with

supporting documentation, on any or all of the issues presented below.

Because these guidelines and regulations could affect any and all

persons furnishing information to consumer reporting agencies,

regardless of the type of furnisher or consumer reporting agency, the

frequency of reporting, or the type of information being provided, we

request that commenters explain, to the extent possible, how their

comments might differ depending on the type of furnisher providing the

information, the type of information being provided, the frequency of

the reporting, or the type of consumer reporting agency to which the

information is provided.

(A) Accuracy and Integrity Guidelines and Regulations

A1. Please describe, in detail, the types of errors, omissions, or

other problems that may impair the accuracy and integrity of

information furnished to consumer reporting agencies. Please specify

whether any such problems result in credit file information that (1) is

incorrect, including inaccurate account information, public record

data, or collection account data; (2) is out of date or includes stale

account information; (3) is associated with the wrong consumer; (4)

omits potentially significant information about the consumer account or

transaction, such as credit limits for or positive information about

the account; (5) is duplicative; (6) may mislead users of consumer

reports; or (7) otherwise adversely affects consumers, particular types

of consumers, or the credit reporting system. Finally, please describe

the significance of such problems for consumers, particular groups of

consumers (e.g., borrowers with poor or limited credit histories),

users of consumer reports, and the credit reporting system.

A2. Please describe, in detail, the patterns, practices, and

specific forms of activity that can compromise the accuracy and

integrity of information furnished to consumer reporting agencies.

Relevant patterns, practices, and specific forms of activity may relate

to any aspect of the information gathering and reporting process, such

as the methods by which furnished information is collected, verified,

edited, standardized, and transferred. They may be of general

applicability or relate to specific types of furnishers, such as

financial institutions, creditors, or collection agencies, or specific

types of consumer reporting agencies, such as credit bureaus or tenant

screening services. Examples of patterns, practices, and specific forms

of activity that may cause these problems include, but are not limited

to, the sale of consumer debts to and among collection agencies, the

conversion or translation of furnished information into a standard

form, and the frequency, timing, categories, and content of information

that is furnished to consumer reporting agencies.

A3. Please describe, in detail, any business, economic, or other

reasons for the patterns, practices, and specific forms of activity

described in item A2.

A4. Please describe, in detail, the policies and procedures that a

furnisher should implement and maintain to identify, prevent, or

mitigate those patterns, practices, and specific forms of activity that

can compromise the accuracy and integrity of information furnished to a

consumer reporting agency.

A5. Please describe, in detail, the methods (including

technological means) used to furnish consumer information to consumer

reporting agencies. Please describe, in detail, how the use of these

methods can either enhance or compromise the accuracy and integrity of

consumer information that is furnished to consumer reporting agencies.

A6. Please describe, in detail, whether and to what extent

furnishers maintain and enforce policies and procedures to ensure the

accuracy and integrity of information furnished to consumer reporting

agencies, including a description of any policies and procedures that

are maintained and enforced, such as policies and procedures relating

to data controls, points of failure, account termination, the re-

reporting of deleted consumer information, the reporting of the

deferral or suspension of payment obligations in unusual circumstances,

such as natural disasters, or the frequency, timing, categories, and

content of information furnished to consumer reporting agencies. Please

assess the effectiveness of these policies and procedures and provide

suggestions on how their effectiveness might be improved or enhanced.

Please describe whether particular policies or procedures are

especially necessary or relevant to particular methods of furnishing

information. Please also describe how such policies and procedures are

monitored and evaluated to ensure their effectiveness.

A7. Please describe, in detail, any methods (including any

technological means) that a furnisher should use to ensure the accuracy

and integrity of consumer information furnished to a consumer reporting

agency.

A8. Please describe, in detail, the policies, procedures, and

processes used by furnishers to conduct reinvestigations and to correct

inaccurate consumer information that has been furnished to consumer

reporting agencies. Please include a description of the policies and

procedures that furnishers use to comply with the requirement that they

``review all relevant information provided by the consumer reporting

agency'' as stated in section 623(b)(1)(B) of the FCRA.

A9. Please describe, in detail, the policies, processes, and

procedures that furnishers should use to conduct reinvestigations and

to correct inaccurate consumer information that has been furnished to

consumer reporting agencies.

A10. Please describe, in detail, the policies and procedures of

consumer reporting agencies for ensuring the accuracy and integrity of

information received from furnishers, including any policies,

procedures, or other requirements imposed on furnishers (by contract or

otherwise) to ensure the accuracy and integrity of information

furnished to consumer reporting agencies. Please describe specifically

whether and to what extent those policies, procedures, or other

requirements address particular problems that may affect information

accuracy and integrity such as the accuracy of consumer address and

other identifying information, updating records to link the correct

consumer(s) to account information, the impact of different reporting

formats, and duplicate reporting by collection agencies. Please also

describe whether particular policies or procedures are especially

necessary or relevant to particular types of furnishers.

(B) Direct Dispute Regulations

B1. Please identify the circumstances under which a furnisher

should (or alternatively, should not) be required to investigate a

dispute concerning the accuracy of information furnished to a consumer

reporting agency based upon a direct request from the consumer, and

explain why.

B2. Please describe any benefits or costs to consumers from having

the right to dispute information directly with the furnisher, rather

than through a consumer reporting agency, in some or all circumstances.

Please address the

[[Page 14424]]

circumstances under which direct disputes with furnishers would yield

more, fewer, or the same benefits or costs for consumers as disputes

that are first received and processed through the consumer reporting

agencies and then routed to furnishers for investigation. Please

quantify any benefits or costs, if possible.

B3. Please describe any benefits to furnishers, consumer reporting

agencies, or the credit reporting system that may result if furnishers

were required to investigate disputes based on direct requests from

consumers in some or all circumstances. Please quantify any benefits,

if possible.

B4. Please describe any costs, including start-up costs, to

furnishers and any costs to consumer reporting agencies or the credit

reporting system, of requiring a furnisher to investigate a dispute

based on a direct request by a consumer in some or all circumstances.

Please address the circumstances under which direct disputes with

furnishers would cost more, less, or the same to process, excluding

start-up costs, as compared to disputes that are first received and

processed through the consumer reporting agencies and then routed to

furnishers for investigation. Please quantify any costs, if possible.

To the extent applicable, please discuss the percentage of disputes

processed through consumer reporting agencies that (1) involve an error

by the consumer reporting agency (rather than a problem with the

information provided by the furnisher), (2) are determined to be

frivolous or irrelevant, or (3) result in changes to consumer credit

files. Does the FCRA's section 623(a)(8)(F)(ii) timing requirement for

a Notice of Determination that a consumer dispute is frivolous or

irrelevant impose additional costs? If so, please provide quantitative

data about such costs.

B5. Please discuss whether it is the current practice of furnishers

to investigate disputes about the accuracy of information furnished to

a consumer reporting agency based on direct requests by consumers. For

those furnishers that currently investigate such direct disputes,

please identify and discuss the following:

B5(a).The circumstances under which the furnisher will and will not

investigate such a direct dispute;

B5(b).The furnisher's experience with receiving and identifying

direct disputes submitted by credit repair organizations;

B5(c).The differences between the furnisher's existing procedures

for resolving direct disputes (including time frames and communications

with the consumer) and the procedures set forth in section 623(a)(8) of

the FCRA, and the costs and other implications of modifying those

procedures to conform to section 623(a)(8);

B5(d).Whether the percentage of direct disputes for a portfolio of

accounts varies for different lines of business (e.g., mortgage, auto

lending, unsecured credit);

B5(e). Whether the costs of resolving direct disputes varies for

different lines of business; and

B5(f).The percentage of disputes received directly from consumers

and from the consumer reporting agencies, the percentage of duplicate

disputes that are received both directly from consumers and the

consumer reporting agencies, and any practices designed to detect and

process such duplicate disputes.

B6. Please describe the impact on the overall accuracy and

integrity of consumer reports if furnishers were required, under some

or all circumstances, to investigate disputes concerning the accuracy

of information furnished to consumer reporting agencies based on the

direct request of a consumer.

B7. Please describe the circumstances in which direct contact by

the consumer with the furnisher would likely result, or alternatively,

would likely not result, in the most expeditious resolution of any

dispute concerning the accuracy of information furnished to a consumer

reporting agency.

B8. Section 623(a)(8)(G) of the FCRA provides that any direct

dispute requirement would not apply to any notice of dispute submitted

by, prepared on behalf of the consumer by, or submitted on a form

supplied by, a credit repair organization. In prescribing the

regulations mandated under section 623(a)(8), section 623(a)(8)(b)(iv)

requires the Agencies to weigh the ``potential impact on the credit

reporting process if credit repair organizations * * * are able to

circumvent the prohibition in subparagraph (G) of that section.''

Please describe the potential impact on the credit reporting process if

a person that meets the definition of a credit repair organization is

able to circumvent section 623(a)(8)(G).

Small Institution Comment Request

The Agencies invite comment on the impact on small institutions of

procedures that would enhance the accuracy and integrity of information

furnished to consumer reporting agencies. The Agencies recognize that

small institutions operate with more limited resources than larger

institutions and may present a different risk profile. Thus, the

Agencies specifically request comment on the impact of a future

proposal on small institutions' current resources and available

personnel with the requisite expertise, and whether the goals of any

proposal could be achieved, for small institutions, through an

alternative approach.

Request for Comment From Furnishers Other Than Depository Institutions

and From Consumer Reporting Agencies Other Than Credit Bureaus

The Agencies invite comments from businesses other than depository

institutions that furnish information to credit bureaus. These may

include certain mortgage lenders, debt collectors, consumer finance

companies, and retailers. The Agencies also invite comments from

persons who furnish information to other types of consumer reporting

agencies, such as consumer reporting agencies that collect information

for the purpose of making decisions regarding insurance, employment or

tenant screening, or check verification. Similarly, the Agencies

request comments from consumer reporting agencies, including

nontraditional consumer reporting agencies that may only provide

information to a limited class of businesses (e.g., medical information

providers and tenant screening services).

Request for Comment From Individuals and Public Interest and Consumer

Advocacy Organizations

The Agencies invite comments from individuals and public interest

and consumer advocacy organizations on the effect that any procedures

to enhance the accuracy and integrity of information furnished to

consumer reporting agencies may have on consumers and the credit

reporting industry.

Economic Growth and Regulatory Paperwork Reduction Act of 1996 Comment

Request

Section 2222 of the Economic Growth and Regulatory Paperwork

Reduction Act of 1996 (EGRPRA) requires the Federal banking agencies

and NCUA, not less frequently than once every 10 years, to identify

outdated or otherwise unnecessary regulatory requirements imposed on

insured depository institutions. Consistent with the goal of section

2222 of the EGRPRA, the Federal banking agencies and NCUA invite

comment on how they might best achieve the goals of section 312 while

minimizing any possible regulatory burden on furnishers. Specifically,

the Federal banking agencies and NCUA

[[Page 14425]]

request comment on how to apply the criteria they must consider when

developing the accuracy and integrity guidelines (see section 623(e)(3)

of the FCRA) so as not to create unnecessary or unduly burdensome

requirements. Also, the Federal banking agencies and NCUA request

comment on how to weigh the considerations relating to when furnishers

must reinvestigate disputes raised directly by consumers (see section

623(a)(8)(B) of the FCRA) so as not to create unnecessary or unduly

burdensome requirements for furnishers.

Executive Order 12866

OCC and OTS: The OCC and OTS do not know whether the guidelines and

regulations they will propose will constitute a significant regulatory

action under the Executive Order 12866. Executive Order 12866 requires

preparation of an analysis for agency actions that are ``significant

regulatory actions.'' ``Significant regulatory actions'' are actions

that may result in regulations that are likely to:

Have an annual effect on the economy of $100 million or

more or adversely affect in a material way the economy, a sector of the

economy, productivity, competition, jobs, the environment, public

health or safety, or State, local, or tribal governments or

communities;

Create a serious inconsistency or otherwise interfere with

an action taken or planned by another agency;

Materially alter the budgetary impact of entitlements,

grants, user fees, or loan programs or the rights and obligations of

recipients thereof; or

Raise novel legal or policy issues arising out of legal

mandates, the President's priorities, or the principles set forth in

the Executive Order.\12\

This ANPR neither establishes nor proposes any regulatory

requirements. Because this ANPR does not contain a specific proposal,

information is not available with which to prepare a regulatory

analysis. The OCC and OTS will each prepare a regulatory analysis if

they proceed with a proposed rule that constitutes a significant

regulatory action.

Accordingly, the OCC and OTS solicit comment, information, and data

on the potential effects on the economy of any guidelines and

regulations that commenters may recommend. The OCC and OTS encourage

commenters to provide information about estimates of costs, benefits,

other effects, or any other information, particularly costs to

implement the statutory requirements if institutions are already

meeting any of those requirements (e.g., documenting policies and

procedures, monitoring, and training). In addition, the OCC and OTS ask

commenters to identify or estimate start-up or non-recurring costs

separately from costs or effects they believe would be ongoing. Also,

the OCC and OTS ask commenters to provide data on the total number of

consumer disputes reported annually and the per-unit cost to resolve

each dispute. Quantitative information would be the most useful. The

OCC and OTS will carefully consider the costs and benefits associated

with this regulatory action.

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\12\ Executive Order 12866 (September 30, 1993), 58 FR 51735

(October 4, 1993), as amended by Executive Order 13258 (February 26,

2002), 67 FR 9385 (February 28, 2002). A ``regulatory action'' is

``any substantive action by an agency (normally published in the

Federal Register) that promulgates or is expected to lead to the

promulgation of a final rule or regulation, including notices of

inquiry, advance notices of proposed rulemaking, and notices of

proposed rulemaking.'' Executive Order 12866, section 3(e).

Dated: March 15, 2006.

John C. Dugan,

Comptroller of the Currency.

By order of the Board of Governors of the Federal Reserve

System, March 13, 2006.

Jennifer J. Johnson,

Secretary of the Board.

By order of the Board of Directors.

Dated at Washington, DC, the 10th day of February, 2006. Federal

Deposit Insurance Corporation.

Robert E. Feldman,

Executive Secretary.

Dated: February 6, 2006.

By the Office of Thrift Supervision.

John M. Reich,

Director.

By the National Credit Union Administration Board on March 13,

2006.

Mary Rupp,

Secretary of the Board.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 06-2758 Filed 3-21-06; 8:45 am]

BILLING CODE 4810-33-P