Fair Credit Reporting (Regulation V)

SUMMARY: Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) transferred rulemaking authority for a number of consumer financial protection laws from seven Federal agencies to the Bureau of Consumer Financial ProtectionJuly 21, 2011. The Bureau is in the process of republishing the regulations implementing those laws with technical and conforming changes to reflect the transfer of authority and certain other changes made by the Dodd-Frank Act. In light of the transfer of certain rulemaking authority for the Fair Credit Reporting Act (FCRA) from the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Federal Trade Commission, National Credit Union Administration, Office of the Comptroller of the Currency, and Office of Thrift Supervision to the Bureau, the Bureau is publishing for public comment an interim final rule establishing a new Regulation V (Fair Credit Reporting). This interim final rule does not impose any new substantive obligations on persons subject to the existing FCRA regulations.

EFFECTIVE DATE: This interim final rule is effective December 30, 2011. Comments must be received on or before February 21, 2012.

ADDRESSES: You may submit comments, identified by Docket No. CFPB-2011-0029 or RIN 3170-AA06, by any of the following methods:

* Electronic: http://www.regulations.gov. Follow the instructions for submitting comments.

* Mail: Monica Jackson, Office of the Executive Secretary, Bureau of Consumer Financial Protection, 1500 Pennsylvania Avenue NW., (Attn: 1801 L Street), Washington, DC 20220.

* Hand Delivery/Courier in Lieu of Mail: Monica Jackson, Office of the Executive Secretary, Bureau of Consumer Financial Protection, 1700 G Street NW., Washington, DC 20006.

All submissions must include the agency name and docket number or Regulatory Information Number (RIN) for this rulemaking. In general, all comments received will be posted without change to http://www.regulations.gov. In addition, comments will be available for public inspection and copying at 1700 G Street NW., Washington, DC 20006, on official business days between the hours of 10 a.m. and 5 p.m. Eastern Time. You can make an appointment to inspect the documents by telephoning (202) 435-7275.

All comments, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. Sensitive personal information, such as account numbers or social security numbers, should not be included. Comments will not be edited to remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: Catherine Henderson or Greg Evans, Office of Regulations, at (202) 435-7700.

SUPPLEMENTARY INFORMATION:

I. Background

The Fair Credit Reporting Act (FCRA), enacted in 1970, sets standards for the collection, communication, and use of information bearing on a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. /1/ Historically, rulemaking authority for the FCRA has been divided among the Board of Governors of the Federal Reserve System (Board), /2/ the Federal Deposit Insurance Corporation (FDIC), /3/ the Federal Trade Commission (FTC), /4/ the National Credit Union Administration (NCUA), /5/ the Office of the Comptroller of the Currency (OCC), /6/ and the Office of Thrift Supervision (OTS). /7/ The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) /8/ amended a number of consumer financial protection laws, including most provisions of the FCRA. In addition to substantive amendments, the Dodd-Frank Act transferred rulemaking authority for most provisions of the FCRA to the Bureau of Consumer Financial Protection (Bureau), effective July 21, 2011. /9/ Pursuant to the Dodd-Frank Act and the FCRA, as amended, the Bureau is publishing for public comment an interim final rule establishing a new Regulation V (Fair Credit Reporting), 12 CFR part 1022, implementing the provisions of the FCRA for which the Bureau has rulemaking authority.

FOOTNOTE 1 15 U.S.C. 1681-1681x. The FCRA has been amended numerous times since 1970, including in the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) (Pub. L. 108-159). END FOOTNOTE

FOOTNOTE 2 12 CFR part 222. END FOOTNOTE

FOOTNOTE 3 12 CFR part 334. END FOOTNOTE

FOOTNOTE 4 16 CFR part 600. END FOOTNOTE

FOOTNOTE 5 12 CFR part 717. END FOOTNOTE

FOOTNOTE 6 12 CFR part 41. END FOOTNOTE

FOOTNOTE 7 12 CFR part 571. END FOOTNOTE

FOOTNOTE 8 Public Law 111-203, 124 Stat. 1376 (2010). END FOOTNOTE

FOOTNOTE 9 See sections 1061 and 1088 of the Dodd-Frank Act. Dodd-Frank section 1029 generally excludes from this transfer of authority, subject to certain exceptions, any rulemaking authority over a motor vehicle dealer that is predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both. END FOOTNOTE

II. Summary of the Interim Final Rule

A. General

The interim final rule substantially duplicates the interagency regulations promulgated under the FCRA by the Board, the FDIC, the FTC, the NCUA, the OCC, and the OTS. In addition, the interim final rule substantially duplicates the following FTC regulations: 16 CFR parts 603, 610, 611, 613, 614, and 642, and associated model forms and disclosures. The interim final rule, published as the Bureau's new Regulation V, 12 CFR part 1022, reproduces the above regulations and associated model forms and interpretations with only certain non-substantive, technical, formatting, and stylistic changes.

To minimize any potential confusion, the Bureau is preserving the numbering of the Board's Regulation V, other than the new part number. This interim final rule generally incorporates the existing regulatory text promulgated by the Board and other agencies with identical regulatory text, as well as appendices (including model forms and clauses), and supplements. Likewise, the interim final rule generally incorporates the above-cited portions of the FTC's regulation (including model forms and clauses) and supplements. The rule has been edited as necessary to reflect nomenclature and other technical amendments required by the Dodd-Frank Act. However, this interim final rule does not make substantive changes to the existing regulations.

B. Specific Changes

To minimize any potential confusion, the Bureau is preserving where possible the past numbering system by republishing regulations with Bureau part numbers that correspond to regulations in existence prior to the transfer of rulemaking authority or regulatory text that was used, in this case, by the Board. Thus, for example, SEC 222.25 of the Board's existing Regulation V will correspond to SEC 1022.25 of the Bureau's new Regulation V. The newly incorporated Federal Trade Commission regulations are integrated as follows:

FTC regulation........................ Bureau regulation

16 CFR part 603........................12 CFR 1022.3

16 CFR part 610........................12 CFR 1022.130

16 CFR part 611........................12 CFR 1022.140

16 CFR part 613........................12 CFR 1022.121

16 CFR part 614........................12 CFR 1022.123

16 CFR part 642........................12 CFR 1022.54

Likewise, the Bureau is republishing model forms and disclosures with Bureau designations that correspond to previous designations of the Board and FTC. The newly incorporated FTC model forms and disclosures are integrated as follows:

FTC form.............................. Bureau form

Appendix A to 16 CFR part 698..........Appendix D to 12 CFR part 1022.

(Prescreen Opt Out Notices)

Appendix D to 16 CFR part 698..........Appendix L to 12 CFR part 1022.

(Standardized Form for Requesting

Annual File Disclosures)

Appendix E to 16 CFR part 698 (Summary Appendix I to 12 CFR part 1022.

of Consumer Identity Theft Rights)

Appendix F to 16 CFR part 698 (General Appendix K to 12 CFR part 1022.

Summary of Consumer Rights)

Appendix G to 16 CFR part 698 (Notice..Appendix M to 12 CFR part 1022.

of Furnisher Responsibilities)

Appendix H to 16 CFR part 698 (Notice..Appendix N to 12 CFR part 1022.

of User Responsibilities)

The Dodd-Frank Act did not transfer certain rulemaking authority under the FCRA. Specifically, the Act did not transfer to the Bureau the authority to promulgate: rules on the disposal of consumer information; /10/ rules on identity theft red flags and corresponding interagency guidelines on identity theft detection, prevention, and mitigation; /11/ and rules on the duties of card issuers regarding changes of address. /12/ These existing provisions are not included in the Bureau's new Regulation V. The Act also did not transfer rulemaking authority under the FCRA over any motor vehicle dealer that is predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both, subject to certain exceptions. /13/

FOOTNOTE 10 See 15 U.S.C. 1681m(e); section 1088 of the Dodd-Frank Act. END FOOTNOTE

FOOTNOTE 11 See 15 U.S.C. 1681w; section 1088 of the Dodd-Frank Act. END FOOTNOTE

FOOTNOTE 12 See 15 U.S.C. 1681m(e); section 1088 of the Dodd-Frank Act. END FOOTNOTE

FOOTNOTE 13 See section 1029 of the Dodd-Frank Act. END FOOTNOTE

References to the Board, FTC, and their administrative structures have been replaced with references to the Bureau. Similarly, references to other agencies that no longer exist (e.g., the Office of Thrift Supervision) have been updated as appropriate.

--This is a summary of a Federal Register article originally published on the page number listed below--

Interim final rule with request for public comment.

CFR Part: "12 CFR Part 1022"

RIN Number: "RIN 3170-AA06"

Citation: "76 FR 79308"

Document Number: "Docket No. CFPB-2011-0029"

Federal Register Page Number: "79308"

"Rules and Regulations"