The FDIC, the other federal financial institution regulatory agencies and
the Federal Trade Commission have jointly published the attached Advance
Notice of Proposed Rulemaking (ANPR) inviting comment to gather information
that is useful for developing guidelines and regulations to implement
section 312 of the Fair and Accurate Credit Transactions Act (FACT Act).
Comments are due by May 22, 2006.
The Fair Credit Reporting Act (FCRA) contains a number of provisions
designed to enhance the accuracy and integrity of data in consumer reports.
In 2003, the FCRA was amended by the FACT Act to, among other things,
enhance the ability of consumers to combat identity theft and increase the
accuracy of consumer reports. Section 312 of the FACT Act requires the
federal financial institution regulatory agencies and the Federal Trade
Commission to issue guidelines and regulations concerning the accuracy and
integrity of information furnished to credit bureaus.
Specifically, section 312 of the FACT Act requires the agencies to:
Establish and maintain guidelines for use by entities that furnish
information to credit bureaus regarding the accuracy and integrity of
Prescribe regulations that require furnishers to establish reasonable
policies and procedures for implementing the guidelines; and
Prescribe regulations that identify the circumstances under which
furnishers will be required to reinvestigate a dispute concerning the
accuracy of information contained in a consumer report based on a
consumer's direct request.
Section 312 identifies the following criteria that the agencies must
consider when developing the accuracy and integrity guidelines. The agencies
are directed to:
Identify patterns, practices and specific forms of activity that can
compromise the accuracy and integrity of information;
Review the methods used to furnish consumer information;
Determine whether furnishers maintain and enforce policies to assure the
accuracy and integrity of information; and
Examine the policies and processes employed by furnishers to conduct
reinvestigations and correct inaccurate consumer information.
Section 312 also identifies issues that the agencies should consider in
developing joint rules that identify circumstances when furnishers must
reinvestigate accuracy disputes raised directly by consumers, including:
The regulations' costs and benefits;
The regulations' impact on the overall accuracy and integrity of
Whether direct contact by a consumer with a furnisher is likely to
result in the most expeditious dispute resolution; and
The potential impact on the credit reporting process if credit repair
organizations are able to circumvent the FCRA provisions pertaining to
direct dispute rules.
The attached ANPR contains a series of questions to gather information
useful for developing the guidelines and regulations. Questions A1 through
A10 address the accuracy and integrity guidelines and regulations, and
Questions B1 through B8 address the direct dispute regulations. The agencies
recognize that small institutions may present different issues than larger
institutions. The agencies specifically invite comment from small
institutions on the impact of a future proposal on current resources, and
whether the goals of any proposal could be achieved through an alternative
The FDIC encourages you to submit comments, together with supporting
documentation, where applicable. Questions may be directed to David Lafleur,
Policy Analyst, on (202) 898-6569 or John Jackwood, Acting Chief, Compliance
Section, on (202) 898-3991 in the Division of Supervision and Consumer
Protection; or Richard Schwartz, Counsel, on (202) 898-7424 or Richard
Foley, Counsel, on (202) 898-3784 in the Legal Division.
Division of Supervision and Consumer Protection