Wednesday,
November 7, 2007
Part II
Department of the Treasury
Office of the Comptroller of the
Currency
12 CFR Part 41
Federal Reserve System
12 CFR Part 222
Federal Deposit Insurance
Corporation
12 CFR Part 334
Department of the Treasury
Office of Thrift Supervision
12 CFR Part 571
National Credit Union
Administration
12 CFR Part 717
Fair Credit Reporting Affiliate Marketing
Regulations; Final Rule
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November 7, 2007
Part II
Department of the Treasury
Office of the Comptroller of the
Currency
12 CFR Part 41
Federal Reserve System
12 CFR Part 222
Federal Deposit Insurance
Corporation
12 CFR Part 334
Department of the Treasury
Office of Thrift Supervision
12 CFR Part 571
National Credit Union
Administration
12 CFR Part 717
Fair Credit Reporting Affiliate Marketing
Regulations; Final Rule
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rwilkins on PROD1PC63 with RULES_2
62910 Federal Register / Vol. 72, No. 215 / Wednesday, November 7, 2007 / Rules and Regulations
1 The FCRA creates substantial obligations for a
person that meets the definition of a ‘‘consumer
reporting agency’’ in section 603(f) of the statute.
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 41
[Docket ID. OCC–2007–0010]
RIN 1557–AC88
FEDERAL RESERVE SYSTEM
12 CFR Part 222
[Regulation V; Docket No. R–1203]
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 334
RIN 3064–AC83
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 571
[Docket ID. OTS–2007–0020]
RIN 1550–AB90
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 717
Fair Credit Reporting Affiliate
Marketing Regulations
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); and
National Credit Union Administration
(NCUA).
ACTION: Final rules.
SUMMARY: The OCC, Board, FDIC, OTS,
and NCUA (Agencies) are publishing
final rules to implement the affiliate
marketing provisions in section 214 of
the Fair and Accurate Credit
Transactions Act of 2003, which
amends the Fair Credit Reporting Act.
The final rules generally prohibit a
person from using information received
from an affiliate to make a solicitation
for marketing purposes to a consumer,
unless the consumer is given notice and
a reasonable opportunity and a
reasonable and simple method to opt
out of the making of such solicitations.
DATES: Effective Date: These rules are
effective January 1, 2008.
Mandatory Compliance Date: October
1, 2008.
FOR FURTHER INFORMATION CONTACT:
OCC: Amy Friend, Assistant Chief
Counsel, (202) 874–5200; Michael
Bylsma, Director, or Stephen Van Meter,
Assistant Director, Community and
Consumer Law, (202) 874–5750; or
Patrick T. Tierney, Senior Attorney,
Legislative and Regulatory Activities
Division, (202) 874–5090, Office of the
Comptroller of the Currency, 250 E
Street, SW., Washington, DC 20219.
Board: David A. Stein, Counsel; Ky
Tran-Trong, Counsel; or Amy E. Burke,
Attorney, Division of Consumer and
Community Affairs, (202) 452–3667 or
(202) 452–2412; or Kara Handzlik,
Attorney, Legal Division, (202) 452–
3852, Board of Governors of the Federal
Reserve System, 20th and C Streets,
NW., Washington, DC 20551. For users
of a Telecommunications Device for the
Deaf (TDD) only, contact (202) 263–
4869.
FDIC: Ruth R. Amberg, Senior
Counsel, (202) 898–3736, or Richard M.
Schwartz, Counsel, Legal Division, (202)
898–7424; April Breslaw, Chief,
Compliance Section, (202) 898–6609;
David P. Lafleur, Policy Analyst,
Division of Supervision and Consumer
Protection, (202) 898–6569, Federal
Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
OTS: Suzanne McQueen, Consumer
Regulations Analyst, Compliance and
Consumer Protection Division, (202)
906–6459; or Richard Bennett, Senior
Compliance Counsel, (202) 906–7409,
Office of Thrift Supervision, 1700 G
Street, NW., Washington, DC 20552.
NCUA: Linda Dent, Staff Attorney,
Office of General Counsel, (703) 518–
6540, National Credit Union
Administration, 1775 Duke Street,
Alexandria, VA 22314–3428.
SUPPLEMENTARY INFORMATION:
I. Background
The Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA
or Act), which was enacted in 1970, sets
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. (15 U.S.C. 1681–1681x.) In 1996,
the Consumer Credit Reporting Reform
Act extensively amended the FCRA.
(Pub. L. 104–208, 110 Stat. 3009.)
The FCRA, as amended, provides that
a person may communicate to an
affiliate or a non-affiliated third party
information solely as to transactions or
experiences between the consumer and
the person without becoming a
consumer reporting agency.1 In
addition, the communication of such
transaction or experience information
among affiliates will not result in any
affiliate becoming a consumer reporting
agency. See FCRA §§ 603(d)(2)(A)(i) and
(ii).
Section 603(d)(2)(A)(iii) of the FCRA
provides that a person may
communicate ‘‘other’’ information—that
is, information that is not transaction or
experience information—among its
affiliates without becoming a consumer
reporting agency if it is clearly and
conspicuously disclosed to the
consumer that such information may be
communicated among affiliates and the
consumer is given an opportunity,
before the information is
communicated, to ‘‘opt out’’ or direct
that the information not be
communicated among such affiliates,
and the consumer has not opted out.
The Fair and Accurate Credit
Transactions Act of 2003
The President signed into law the Fair
and Accurate Credit Transactions Act of
2003 (FACT Act) on December 4, 2003.
(Pub. L. 108–159, 117 Stat. 1952.) In
general, the FACT Act amends 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 number of solicitations they
receive.
Section 214 of the FACT Act added a
new section 624 to the FCRA. This
provision gives consumers the right to
restrict a person from using certain
information obtained from an affiliate to
make solicitations to that consumer.
Section 624 generally provides that if a
person receives certain consumer
eligibility information from an affiliate,
the person may not use that information
to make solicitations to the consumer
about its products or services, unless the
consumer is given notice and an
opportunity and a simple method to opt
out of such use of the information, and
the consumer does not opt out. The
statute also provides that section 624
does not apply, for example, to a person
using eligibility information: (1) To
make solicitations to a consumer with
whom the person has a pre-existing
business relationship; (2) to perform
services for another affiliate subject to
certain conditions; (3) in response to a
communication initiated by the
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rwilkins on PROD1PC63 with RULES_2
1 The FCRA creates substantial obligations for a
person that meets the definition of a ‘‘consumer
reporting agency’’ in section 603(f) of the statute.
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 41
[Docket ID. OCC–2007–0010]
RIN 1557–AC88
FEDERAL RESERVE SYSTEM
12 CFR Part 222
[Regulation V; Docket No. R–1203]
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 334
RIN 3064–AC83
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 571
[Docket ID. OTS–2007–0020]
RIN 1550–AB90
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 717
Fair Credit Reporting Affiliate
Marketing Regulations
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); and
National Credit Union Administration
(NCUA).
ACTION: Final rules.
SUMMARY: The OCC, Board, FDIC, OTS,
and NCUA (Agencies) are publishing
final rules to implement the affiliate
marketing provisions in section 214 of
the Fair and Accurate Credit
Transactions Act of 2003, which
amends the Fair Credit Reporting Act.
The final rules generally prohibit a
person from using information received
from an affiliate to make a solicitation
for marketing purposes to a consumer,
unless the consumer is given notice and
a reasonable opportunity and a
reasonable and simple method to opt
out of the making of such solicitations.
DATES: Effective Date: These rules are
effective January 1, 2008.
Mandatory Compliance Date: October
1, 2008.
FOR FURTHER INFORMATION CONTACT:
OCC: Amy Friend, Assistant Chief
Counsel, (202) 874–5200; Michael
Bylsma, Director, or Stephen Van Meter,
Assistant Director, Community and
Consumer Law, (202) 874–5750; or
Patrick T. Tierney, Senior Attorney,
Legislative and Regulatory Activities
Division, (202) 874–5090, Office of the
Comptroller of the Currency, 250 E
Street, SW., Washington, DC 20219.
Board: David A. Stein, Counsel; Ky
Tran-Trong, Counsel; or Amy E. Burke,
Attorney, Division of Consumer and
Community Affairs, (202) 452–3667 or
(202) 452–2412; or Kara Handzlik,
Attorney, Legal Division, (202) 452–
3852, Board of Governors of the Federal
Reserve System, 20th and C Streets,
NW., Washington, DC 20551. For users
of a Telecommunications Device for the
Deaf (TDD) only, contact (202) 263–
4869.
FDIC: Ruth R. Amberg, Senior
Counsel, (202) 898–3736, or Richard M.
Schwartz, Counsel, Legal Division, (202)
898–7424; April Breslaw, Chief,
Compliance Section, (202) 898–6609;
David P. Lafleur, Policy Analyst,
Division of Supervision and Consumer
Protection, (202) 898–6569, Federal
Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
OTS: Suzanne McQueen, Consumer
Regulations Analyst, Compliance and
Consumer Protection Division, (202)
906–6459; or Richard Bennett, Senior
Compliance Counsel, (202) 906–7409,
Office of Thrift Supervision, 1700 G
Street, NW., Washington, DC 20552.
NCUA: Linda Dent, Staff Attorney,
Office of General Counsel, (703) 518–
6540, National Credit Union
Administration, 1775 Duke Street,
Alexandria, VA 22314–3428.
SUPPLEMENTARY INFORMATION:
I. Background
The Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA
or Act), which was enacted in 1970, sets
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. (15 U.S.C. 1681–1681x.) In 1996,
the Consumer Credit Reporting Reform
Act extensively amended the FCRA.
(Pub. L. 104–208, 110 Stat. 3009.)
The FCRA, as amended, provides that
a person may communicate to an
affiliate or a non-affiliated third party
information solely as to transactions or
experiences between the consumer and
the person without becoming a
consumer reporting agency.1 In
addition, the communication of such
transaction or experience information
among affiliates will not result in any
affiliate becoming a consumer reporting
agency. See FCRA §§ 603(d)(2)(A)(i) and
(ii).
Section 603(d)(2)(A)(iii) of the FCRA
provides that a person may
communicate ‘‘other’’ information—that
is, information that is not transaction or
experience information—among its
affiliates without becoming a consumer
reporting agency if it is clearly and
conspicuously disclosed to the
consumer that such information may be
communicated among affiliates and the
consumer is given an opportunity,
before the information is
communicated, to ‘‘opt out’’ or direct
that the information not be
communicated among such affiliates,
and the consumer has not opted out.
The Fair and Accurate Credit
Transactions Act of 2003
The President signed into law the Fair
and Accurate Credit Transactions Act of
2003 (FACT Act) on December 4, 2003.
(Pub. L. 108–159, 117 Stat. 1952.) In
general, the FACT Act amends 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 number of solicitations they
receive.
Section 214 of the FACT Act added a
new section 624 to the FCRA. This
provision gives consumers the right to
restrict a person from using certain
information obtained from an affiliate to
make solicitations to that consumer.
Section 624 generally provides that if a
person receives certain consumer
eligibility information from an affiliate,
the person may not use that information
to make solicitations to the consumer
about its products or services, unless the
consumer is given notice and an
opportunity and a simple method to opt
out of such use of the information, and
the consumer does not opt out. The
statute also provides that section 624
does not apply, for example, to a person
using eligibility information: (1) To
make solicitations to a consumer with
whom the person has a pre-existing
business relationship; (2) to perform
services for another affiliate subject to
certain conditions; (3) in response to a
communication initiated by the
VerDate Aug<31>2005 16:20 Nov 06, 2007 Jkt 214001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\07NOR2.SGM 07NOR2
rwilkins on PROD1PC63 with RULES_2