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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
[[Page 14422]]
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
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