Federal Deposit Insurance Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-98-2007
November 7, 2007
Fair and Accurate Credit Transactions Act
Final Interagency Regulations on Affiliate Marketing
Summary: The FDIC, the other federal financial institution regulatory agencies, the Securities and Exchange
Commission, and the Federal Trade Commission have jointly published the attached final rules to implement the
affiliate marketing provisions of the Fair Credit Reporting Act (FCRA) as amended by the Fair and Accurate Credit
Transactions Act (FACT Act.) The final rules implement Section 214 of the FACT Act, which generally prohibits 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
making such solicitations.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Compliance Officer
Related Topics:
FDIC Part 334 - Fair Credit Reporting
FCRA - Section 603(d)
Attachment:
12 CFR Part 717: Fair Credit Reporting Affiliate
Marketing Regulations; Final Rule (PDF Help)
Contact:
Senior Policy Analyst (Compliance) David Lafleur at
(202) 898-6569 or dlafleur@fdic.gov
Senior Policy Analyst (Compliance) John Jackwood at
(202) 898-3991 or jjackwood@fdic.gov
Note:
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site
at www.fdic.gov/news/news/financial/2007/index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center,
3501 Fairfax Drive, E-1102, Arlington, VA 22226 (1-877-
275-3342 or 202-416-6940).
Highlights:
The regulation contains the consumer opt-out right
concerning the use of shared eligibility information for
marketing solicitations. The regulation also contains
exceptions to the opt-out requirements when affiliates
have pre-existing business relationships with
consumers and for other situations, including certain
employment functions, consumer-initiated requests
and authorizations, and the use of service providers.
Institutions are reminded that the sharing of certain
non-transaction and experience information about
consumers with affiliates is still subject to a separate
opt-out right under Section 603(d) of the FCRA.
The regulations also contain the technical notice and
opt-out processing requirements, which are
consistent, to the extent possible, with similar
provisions of the Financial Privacy regulations.
Financial institutions have the option to provide
disclosures separately or combine them with existing
privacy notices. Sample consumer notices are
contained in Appendix A to the regulation.
The final rules are effective January 1, 2008, and
mandatory compliance is required by October 1,
2008.Inactive
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-98-2007
November 7, 2007
Fair and Accurate Credit Transactions Act
Final Interagency Regulations on Affiliate Marketing
Summary: The FDIC, the other federal financial institution regulatory agencies, the Securities and Exchange
Commission, and the Federal Trade Commission have jointly published the attached final rules to implement the
affiliate marketing provisions of the Fair Credit Reporting Act (FCRA) as amended by the Fair and Accurate Credit
Transactions Act (FACT Act.) The final rules implement Section 214 of the FACT Act, which generally prohibits 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
making such solicitations.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Compliance Officer
Related Topics:
FDIC Part 334 - Fair Credit Reporting
FCRA - Section 603(d)
Attachment:
12 CFR Part 717: Fair Credit Reporting Affiliate
Marketing Regulations; Final Rule (PDF Help)
Contact:
Senior Policy Analyst (Compliance) David Lafleur at
(202) 898-6569 or dlafleur@fdic.gov
Senior Policy Analyst (Compliance) John Jackwood at
(202) 898-3991 or jjackwood@fdic.gov
Note:
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site
at www.fdic.gov/news/news/financial/2007/index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center,
3501 Fairfax Drive, E-1102, Arlington, VA 22226 (1-877-
275-3342 or 202-416-6940).
Highlights:
The regulation contains the consumer opt-out right
concerning the use of shared eligibility information for
marketing solicitations. The regulation also contains
exceptions to the opt-out requirements when affiliates
have pre-existing business relationships with
consumers and for other situations, including certain
employment functions, consumer-initiated requests
and authorizations, and the use of service providers.
Institutions are reminded that the sharing of certain
non-transaction and experience information about
consumers with affiliates is still subject to a separate
opt-out right under Section 603(d) of the FCRA.
The regulations also contain the technical notice and
opt-out processing requirements, which are
consistent, to the extent possible, with similar
provisions of the Financial Privacy regulations.
Financial institutions have the option to provide
disclosures separately or combine them with existing
privacy notices. Sample consumer notices are
contained in Appendix A to the regulation.
The final rules are effective January 1, 2008, and
mandatory compliance is required by October 1,
2008.Inactive