[Federal Register: March 27, 2001 (Volume 66, Number 59)]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 41
[Docket No. 01-04]
FEDERAL RESERVE SYSTEM
12 CFR Part 222
[Regulation V; Docket No. R-1082]
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 334
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 571
[Docket No. 2001-17]
Fair Credit Reporting Regulations on Communication of Consumer
Information Among Affiliated Institutions
AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC);
Board of Governors of the Federal Reserve System (Board); Federal
Deposit Insurance Corporation (FDIC); and Office of Thrift Supervision,
ACTION: Joint notice of proposed rulemaking; update.
SUMMARY: The OCC, Board, FDIC, and OTS (Agencies) have published for
comment proposed regulations implementing the provisions of the Fair
Credit Reporting Act (FCRA) that permit institutions to communicate
consumer information to their affiliates (affiliate information
sharing) without incurring the obligations of consumer reporting
agencies. Many of the comments have raised concerns about how this
rulemaking would affect compliance with the final regulations
implementing the privacy provisions of the Gramm-Leach-Bliley Act
(GLBA). The final FCRA rule will not apply to privacy notices that an
institution will have sent prior to January 1, 2002, or prior to the
effective date of a final FCRA rule, whichever is later. The Agencies
advise financial institutions to prepare their privacy notices in
accordance with the privacy regulations and the FCRA without delaying
compliance until publication of the final FCRA rule, and provide an
update on the status of the rulemaking.
FOR FURTHER INFORMATION CONTACT:
OCC: Michael S. Bylsma, Director, Community and Consumer Law
Division, (202) 874-5750; or Amy Friend, Assistant Chief Counsel, (202)
874-5200, Office of the Comptroller of the Currency, 250 E Street, SW.,
Washington, DC 20219.
Board: Jane J. Gell, Managing Counsel, Division of Consumer and
Community Affairs, (202) 452-3667; or Thomas E. Scanlon, Senior
Attorney, Legal Division (202) 452-3594, Board of Governors of the
Federal Reserve System, 20th and C Streets, NW., Washington, DC 20051.
FDIC: James K. Baebel, Assistant Director, Compliance Policy,
Division of Compliance and Consumer Affairs, (202) 942-3086, Federal
Deposit Insurance Corporation, 550 17th Street, NW., Washington, DC
OTS: Paul Robin, Assistant Chief Counsel, (202) 906-6648; or
Christine Harrington, Counsel (Banking and Finance), (202) 906-7957,
Regulations and Legislation Division, Office of Thrift Supervision,
1700 G Street, NW., Washington, DC 20552.
On June 1, 2000, the Agencies jointly published final regulations
implementing provisions of the GLBA regarding the privacy of consumer
financial information (privacy regulations) (65 FR 35162). The privacy
regulations require that financial institutions deliver initial privacy
notices to their existing customers no later than July 1, 2001. To meet
the July 1, 2001, deadline, many institutions are currently designing,
printing, and preparing to distribute their initial privacy notices.
Since 1997, the FCRA has permitted an institution to disclose
certain consumer information to its affiliates, without incurring the
obligations of consumer reporting agencies, if it first provides the
consumer with a notice regarding the disclosure and an opportunity to
opt out. The privacy regulations require an institution to include a
FCRA notice, if applicable, within its privacy notice.
On October 20, 2000, the Agencies published for comment proposed
regulations implementing the FCRA affiliate information-sharing
provisions (October FCRA Proposal) (65 FR 63120). The October FCRA
Proposal addressed, among other matters, the form, content, and means
of delivery of FCRA opt out notices.
A number of financial institutions have expressed concern that if
the FCRA opt out notices included in their initial privacy notices are
inconsistent with final FCRA regulations, then they may be required to
revise and reissue their privacy notices. As a result, some financial
institutions may consider delaying the preparation and delivery of
privacy notices until very close to July 1, 2001. Other financial
institutions that already have delivered their privacy notices are
concerned that they may have to revise and redeliver their notices.
To allow financial institutions to plan for and meet the
requirements of the privacy regulations, the Agencies provide this
update on the October FCRA Proposal. The Agencies are actively
considering all of the comments submitted by the public regarding the
October FCRA Proposal. Among other things, the Agencies are considering
whether it is appropriate in light of suggestions and new issues raised
by commenters to request comment on a revised proposed rule or whether
to proceed to issue a final rule. In either event, the Agencies do not
contemplate that a final FCRA rule will be adopted in time for
institutions to adhere to the rule's requirements and deliver their
privacy notices before July 1, 2001. Accordingly, the Agencies
encourage institutions to deliver their privacy notices well in advance
of the July 1 deadline when possible.
The Agencies will also carefully consider and address the request
of commenters to the October FCRA Proposal that the Agencies delay the
effective date of the final FCRA rule to permit financial institutions
adequate time to comply with the final rule and the privacy
regulations. Under no circumstances, however, will the final FCRA rule
apply to privacy notices under the GLBA that an institution will have
sent prior to January 1, 2002, or prior to the effective date of a
final FCRA rule, whichever is later.
Dated: March 19, 2001.
John D. Hawke, Jr.,
Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System, March 14, 2001.
Jennifer J. Johnson,
Secretary of the Board.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, this 13th day of March, 2001.
Robert E Feldman,
Dated: March 13, 2001.
By the Office of Thrift Supervision.
[FR Doc. 01-7442 Filed 3-26-01; 8:45 am]
BILLING CODE 4810-33-P, 6210-01-P, 6714-01-P, 6720-01-P