The Fair and Accurate Credit Transactions Act of 2003 (FACT Act) contains
some provisions that will be implemented through regulations and other
provisions that are self-executing. This letter explains the FDICs
compliance expectations for both.
The Fair and Accurate Credit Transactions Act of 2003 (FACT Act) was signed
into law in December 2003. It substantially amended the Fair Credit
Reporting Act (FCRA) to respond to different issues raised by industry and
consumer advocates. In response to industry concerns, the FACT Act preserves
uniform national standards for the content of consumer report information
and credit access to such information. In response to concerns raised by
consumer advocates, the FACT Act contains many new provisions to combat
identity theft, protect privacy, and improve consumer access to and overall
accuracy of consumer reports.
Many provisions of the FACT Act require federal agencies to publish
implementing regulations. These agencies have jointly determined that
institutions will not be held responsible for compliance with these
provisions until the final rules are issued. The final rules will specify
when compliance is required.
Recently, the federal agencies responsible for the various regulations
received a letter from the American Bankers Association, representing
several industry and trade groups seeking clarification on the effective
dates of ten specific provisions of the FACT Act. An interagency response to
this request was prepared and is attached. The letter reflects the
agencies compliance expectations for these ten provisions and is
consistent with the FDICs overall FACT Act compliance expectations
contained herein.
With regard to the provisions of the FACT Act that do not require
implementing regulations, the FDIC expects covered entities to begin to
comply by the dates contained in the FACT Act, or by the effective dates
jointly set by the Federal Trade Commission (FTC) and the Federal Reserve
Board (FRB). The FTC and FRB published these dates in a rulemaking in
February 2004. Information about this rule and the effective dates can be
found at: http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040205/default.htm.
Questions regarding the FACT Act effective dates may be directed to David
Lafleur, CRCM, Policy Analyst-Compliance, at (202) 898-6569, or dlafleur@fdic.gov
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Michael J.
Zamorski
Director
Division of Supervision and Consumer Protection
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