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Press Releases
Joint
Release |
Board
of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency
Office of Thrift Supervision
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Agencies Finalize FACT Act Rules on Medical Information
FOR IMMEDIATE RELEASE
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November
17, 2005
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The federal bank, thrift, and credit union regulatory agencies today issued
final rules under the Fair Credit Reporting Act (FCRA) that create exceptions
to the statutory prohibition against obtaining or using medical information
in connection with credit eligibility determinations. The final rules, which
are substantially identical to the interim final rules issued by the agencies
in June 2005, also address the sharing of medically related information
among affiliates.
The effective date for these final rules is April 1, 2006.
Section 411 of the Fair and Accurate Credit Transactions Act of 2003
(FACT Act) amended the FCRA to provide that a creditor may not obtain
or use medical
information in connection with any determination of a consumer's eligibility,
or continued eligibility, for credit, except as permitted by regulations. The
FACT Act requires the agencies to prescribe regulations that permit creditors
to obtain and use medical information for credit eligibility purposes when
necessary and appropriate to protect legitimate operational, transactional,
risk, consumer, and other needs. The proposed rules were published for comment
on April 28, 2004 and interim final rules were adopted by the agencies on June
10, 2005.
The final rules issued today permit creditors to obtain and use medical
information that is typically considered in credit underwriting. Under the
final rules, all creditors can rely upon the exceptions for obtaining and
using medical information.
Section 411 of the FACT Act also amended the FCRA to limit the ability of creditors
and others to share medically related information among affiliates, except
as permitted by the statute, regulation, or order. The final rules specify
the circumstances in which certain creditors may share medically related information
among affiliates without becoming consumer reporting agencies.
The final rules are being issued by the Board of Governors of the Federal
Reserve System, Federal Deposit Insurance Corporation, National Credit
Union Administration, Office of the Comptroller of the Currency, and
Office of
Thrift Supervision. The rules of each agency are substantively identical.
The Federal Register notice is attached.
# # #
Attachments:
Media
Contacts |
Federal
Reserve |
Susan
Stawick |
(202)
452-2955 |
FDIC |
David
Barr |
(202)
898-6992 |
NCUA |
Cherie
Umbel |
(703)
518-6330 |
OCC |
Dean DeBuck |
(202) 874-5770 |
OTS |
Erin Hickman |
(202) 906-6677 |
FDIC-PR-114-2005
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