Updates to the Updates to the Fair Credit Reporting ActFair Credit Reporting Act

As Amended byAs Amended byTheThe

Fair and Accurate Credit Transactions Fair and Accurate Credit Transactions Act December 4, 2003Act December 4, 2003

Amendment of the FCRA Rules Amendment of the FCRA Rules Under the FACT Act of 2003Under the FACT Act of 2003

President Bush signed into law the Fair President Bush signed into law the Fair and Accurate Credit Transactions (FACT) and Accurate Credit Transactions (FACT) Act on 12/4/03Act on 12/4/03

The FACT Act reauthorized provisions of The FACT Act reauthorized provisions of the Fair Credit Reporting Act (FCRA) that the Fair Credit Reporting Act (FCRA) that would have expired at the end of 2003would have expired at the end of 2003

The FTC, the Federal Reserve and the The FTC, the Federal Reserve and the National Credit Union Administration are National Credit Union Administration are responsible for adopting a number of rules responsible for adopting a number of rules to implement its provisions amending the to implement its provisions amending the Fair Credit Reporting Act Fair Credit Reporting Act Effective dates & rule issuance are a work in Effective dates & rule issuance are a work in

progressprogress

The Good NewsThe Good News

The expiration of Federal Preemption The expiration of Federal Preemption provisions in the FCRA providing for a provisions in the FCRA providing for a national uniform credit reporting national uniform credit reporting system have been removed system have been removed permanently.permanently. Current State laws regarding credit Current State laws regarding credit

reporting or prescreened lists, unless in reporting or prescreened lists, unless in effect on 9/30/96, are preemptedeffect on 9/30/96, are preempted

Current State Credit Score disclosure Current State Credit Score disclosure requirements, unless in effect 12/4/03, requirements, unless in effect 12/4/03, are preemptedare preempted

But What Did Congress Do??But What Did Congress Do??

Under Section 211 (d) of FACTA the FTC Under Section 211 (d) of FACTA the FTC must draft rules for purposes of prescribing must draft rules for purposes of prescribing how various types of CRAs (Consumer how various types of CRAs (Consumer Reporting Agencies) must provide free Reporting Agencies) must provide free annual disclosures of credit files once a annual disclosures of credit files once a year upon request of the consumer.year upon request of the consumer.

Will the new rules issued by the FTC over Will the new rules issued by the FTC over the next 12 to 36 months be positive or will the next 12 to 36 months be positive or will it choke the credit information delivery it choke the credit information delivery systems and the dispute process systems?systems and the dispute process systems?

FACTA and FACTA and Consumer Reporting AgenciesConsumer Reporting Agencies

Free Annual Credit Reports effective Free Annual Credit Reports effective 12/1/0412/1/04 Section 612 (a) (1)The three Nationwide Section 612 (a) (1)The three Nationwide

Consumer Reporting Agencies (CRAs) – Equifax, Consumer Reporting Agencies (CRAs) – Equifax, Experian and TransUnion – must provide to the Experian and TransUnion – must provide to the consumers, upon request, a free copy of their consumers, upon request, a free copy of their credit report once every twelve months credit report once every twelve months

Approximately fifty percent of all file disclosures Approximately fifty percent of all file disclosures result in consumer contacts & often submissions of result in consumer contacts & often submissions of disputesdisputes

The CRAs must establish a “Centralized The CRAs must establish a “Centralized Source” for accepting the consumers requests Source” for accepting the consumers requests for the annual file disclosuresfor the annual file disclosures

The Centralized Source The Centralized Source Must IncludeMust Include

A Dedicated Internet WebsiteA Dedicated Internet Website A Toll-free telephone numberA Toll-free telephone number A Postal AddressA Postal Address

The Centralized Source:The Centralized Source:

Must have Adequate Capacity to accept Must have Adequate Capacity to accept requests from the reasonably anticipated requests from the reasonably anticipated volume of consumers making requestsvolume of consumers making requests

May collect only as much personally May collect only as much personally identifiable information as necessaryidentifiable information as necessary

Must provide clear easily understandable Must provide clear easily understandable information and instructions on how to make information and instructions on how to make requestsrequests

May not include any advertising or marketing May not include any advertising or marketing that interferes with, detracts from or that interferes with, detracts from or undermines the purpose of the centralized undermines the purpose of the centralized sourcesource

Structured Roll-out for the Structured Roll-out for the Centralized Source for RequestsCentralized Source for Requests

Availability in Cumulative Stages over 9 Availability in Cumulative Stages over 9 monthsmonths Rolling out West to East beginning 12/1/04Rolling out West to East beginning 12/1/04 Transition to be complete by 9/1/05Transition to be complete by 9/1/05

Consumers eligible on the following Consumers eligible on the following schedule:schedule: Western States – eligible 12/1/04Western States – eligible 12/1/04 Midwestern States – eligible 3/1/05Midwestern States – eligible 3/1/05 Southern States – eligible 6/1/05 Southern States – eligible 6/1/05

Western States – eligible 12/1/04Western States – eligible 12/1/04

AlaskaAlaska ArizonaArizona CaliforniaCalifornia ColoradoColorado HawaiiHawaii IdahoIdaho MontanaMontana

NevadaNevada New MexicoNew Mexico OregonOregon UtahUtah WashingtonWashington WyomingWyoming

Midwestern States – eligible 3/1/05Midwestern States – eligible 3/1/05

IllinoisIllinois IndianaIndiana IowaIowa KansasKansas MichiganMichigan MinnesotaMinnesota

MissouriMissouri NebraskaNebraska North DakotaNorth Dakota OhioOhio South DakotaSouth Dakota WisconsinWisconsin

Southern States – eligible 6/1/05Southern States – eligible 6/1/05

AlabamaAlabama ArkansasArkansas FloridaFlorida GeorgiaGeorgia KentuckyKentucky LouisianaLouisiana

MississippiMississippi OklahomaOklahoma South CarolinaSouth Carolina TennesseeTennessee TexasTexas

Eastern States – eligible 9/1/05Eastern States – eligible 9/1/05

ConnecticutConnecticut DelawareDelaware District of District of

ColumbiaColumbia MaineMaine MarylandMaryland MassachusettsMassachusetts New HampshireNew Hampshire New JerseyNew Jersey New YorkNew York

North CarolinaNorth Carolina PennsylvaniaPennsylvania Rhode IslandRhode Island VermontVermont VirginiaVirginia West VirginiaWest Virginia Puerto RicoPuerto Rico All U.S. territoriesAll U.S. territories

The Final Rule The Final Rule on Free Annual Credit Reports on Free Annual Credit Reports

Provides nationwide CRAs with relief from Provides nationwide CRAs with relief from the capacity requirements during times of the capacity requirements during times of unusually heavy request volumeunusually heavy request volume CRAs would be permitted to:CRAs would be permitted to:

place consumer requests in a queue for processing at a place consumer requests in a queue for processing at a later timelater time

Request that the consumer return to the centralized Request that the consumer return to the centralized source at a reasonable time latersource at a reasonable time later

Requires nationwide CRAs to develop and Requires nationwide CRAs to develop and implement reasonable procedures to implement reasonable procedures to anticipate the volume of consumer requests anticipate the volume of consumer requests and a contingency planand a contingency plan

The Final Rule The Final Rule on Free Annual Credit Reportson Free Annual Credit Reports

Limits the use and Disclosure of Limits the use and Disclosure of personally identifiable information personally identifiable information collected as the result of a consumer collected as the result of a consumer request for a free credit report to:request for a free credit report to: Update the nationwide CRAs databasesUpdate the nationwide CRAs databases To process transactions the consumer To process transactions the consumer

requested at the same time as the free requested at the same time as the free annual credit report requestannual credit report request

To comply with applicable lawTo comply with applicable law

The Final Rule Requirements for The Final Rule Requirements for the Nationwide Specialty CRAs the Nationwide Specialty CRAs

Nationwide Specialty CRAs maintain Nationwide Specialty CRAs maintain specific types of files on consumers such specific types of files on consumers such as:as: Employment history, tenant history, medical Employment history, tenant history, medical

records, and insurance claimsrecords, and insurance claims Nationwide Specialty CRAs are also Nationwide Specialty CRAs are also

required to maintain a toll-free telephone required to maintain a toll-free telephone number through which consumers may number through which consumers may request a free copy of their credit file once request a free copy of their credit file once every 12 monthsevery 12 months

Disclosures of Credit Scores by Disclosures of Credit Scores by Nationwide CRAsNationwide CRAs

Section 609 (f) (2) defines a credit score as a Section 609 (f) (2) defines a credit score as a numerical value derived from a statistical tool or numerical value derived from a statistical tool or modeling system used by a person who makes or modeling system used by a person who makes or arranges loans a loan to predict the likelihood of arranges loans a loan to predict the likelihood of certain credit behaviors. certain credit behaviors. It does not include any mortgage score or rating of an It does not include any mortgage score or rating of an

automated underwriting system that considers one or automated underwriting system that considers one or more factors in addition to credit information more factors in addition to credit information

It does not include any other elements of the It does not include any other elements of the underwriting process or decisionunderwriting process or decision

Section 609 (a) (6) requires as part of the Section 609 (a) (6) requires as part of the disclosure when a consumer requests the free disclosure when a consumer requests the free annual credit report without the credit score, that annual credit report without the credit score, that a statement be included which indicates that the a statement be included which indicates that the consumer may request and obtain a credit score. consumer may request and obtain a credit score.

Upon Request by the Consumer Upon Request by the Consumer for a Credit Score from the CRAfor a Credit Score from the CRA

The Nationwide CRA shall supply to the The Nationwide CRA shall supply to the consumer:consumer: A statement that the information and scoring model A statement that the information and scoring model

may be different than the credit score that may be may be different than the credit score that may be used by the lender and a notice that contains:used by the lender and a notice that contains:

The consumer’s current score or most recent score that was The consumer’s current score or most recent score that was previously calculated by the CRA for a purpose related to the previously calculated by the CRA for a purpose related to the extension of creditextension of credit

The range of possible scores under the model usedThe range of possible scores under the model used All the key factors, up to 4 (plus inquiries if applicable), that All the key factors, up to 4 (plus inquiries if applicable), that

adversely affected the score in the model usedadversely affected the score in the model used The date the score was calculatedThe date the score was calculated The name of the CRA that provided the score or credit file The name of the CRA that provided the score or credit file

upon which the score was createdupon which the score was created The score required is one derived from a credit scoring The score required is one derived from a credit scoring

model widely distributed by the CRA in connection model widely distributed by the CRA in connection with mortgage loanswith mortgage loans

Upon Request by the Consumer Upon Request by the Consumer for a Credit Score from the CRA for a Credit Score from the CRA

The CRA is not required to develop or disclose a The CRA is not required to develop or disclose a score if the agency does not distribute scores in score if the agency does not distribute scores in connection with residential property loans or connection with residential property loans or develop scoresdevelop scores

The CRA is not required to:The CRA is not required to: further explain the scores developed by another entityfurther explain the scores developed by another entity Process a disputeProcess a dispute Maintain credit scores in its credit filesMaintain credit scores in its credit files

The CRA may charge a reasonable fee for the score The CRA may charge a reasonable fee for the score as determined by the FTCas determined by the FTC

If a key factor adversely affecting the score If a key factor adversely affecting the score consists of the number of inquiries made with consists of the number of inquiries made with respect to a credit report, the factor must be respect to a credit report, the factor must be included in the key factors regardless of the included in the key factors regardless of the numerical (4 reason code) limitationnumerical (4 reason code) limitation

Disclosure of Credit Scores Disclosure of Credit Scores by Mortgage Lendersby Mortgage Lenders

Section 609 (g) & (f) provide for State laws relating Section 609 (g) & (f) provide for State laws relating to the disclosure of credit scores used for the to the disclosure of credit scores used for the granting of credit to be exempt from federal granting of credit to be exempt from federal preemption, if they were in existence as of 12/4/03. preemption, if they were in existence as of 12/4/03. Those state laws have been grandfathered in to the Those state laws have been grandfathered in to the current regulation.current regulation.

Section 609 (g) States a User of a credit score that Section 609 (g) States a User of a credit score that makes or arranges loans and who uses a credit score makes or arranges loans and who uses a credit score in connection with an application initiated or sought in connection with an application initiated or sought by a consumer for a closed end loan or the by a consumer for a closed end loan or the establishment of an open-end loan that is secured by establishment of an open-end loan that is secured by 1 to 4 units of residential real property shall provide 1 to 4 units of residential real property shall provide certain disclosures as soon as reasonably practicable certain disclosures as soon as reasonably practicable

Mortgage Lender Credit Score Mortgage Lender Credit Score Disclosure RequirementsDisclosure Requirements

Effective Date of this disclosure requirement is Effective Date of this disclosure requirement is December 1, 2004 December 1, 2004

To provide, as soon as reasonably practicable a copy To provide, as soon as reasonably practicable a copy of:of: The Credit Scores calculated by the CRA for the purpose The Credit Scores calculated by the CRA for the purpose

related to the extension of credit related to the extension of credit The range of possible scores under the model usedThe range of possible scores under the model used All of the key factors that adversely affected the score of the All of the key factors that adversely affected the score of the

consumer in the model usedconsumer in the model used The date on which the credit score was createdThe date on which the credit score was created The name, address and telephone number of the CRA that The name, address and telephone number of the CRA that

provided the credit score or credit file upon which the score provided the credit score or credit file upon which the score was created was created

To provide a copy of the information obtained from To provide a copy of the information obtained from the CRA to the consumer along with the mandatory the CRA to the consumer along with the mandatory statement - “Notice to the Home Loan Applicant”statement - “Notice to the Home Loan Applicant”

Notice to The Home Loan ApplicantNotice to The Home Loan Applicant

In connection with your application for a home loan, the lender must disclose to you the score that In connection with your application for a home loan, the lender must disclose to you the score that a consumer reporting agency distributed to users and the lender used in connection with your a consumer reporting agency distributed to users and the lender used in connection with your home loan, and the key factors affecting your scores. home loan, and the key factors affecting your scores.

The credit score is a computer generated summary calculated at the time of the request and based The credit score is a computer generated summary calculated at the time of the request and based on the information that a consumer reporting agency or lender has on file. The scores are based on the information that a consumer reporting agency or lender has on file. The scores are based on data about your credit history and payment patterns. Credit scores are important because they on data about your credit history and payment patterns. Credit scores are important because they are used to assist the lender in determining the rate you may be offered on the mortgage. Credit are used to assist the lender in determining the rate you may be offered on the mortgage. Credit scores can change over time, depending on your conduct, how your credit history and payment scores can change over time, depending on your conduct, how your credit history and payment patterns change, and how credit scoring technologies change.patterns change, and how credit scoring technologies change.

Because the score is based on information in your credit history, it is very important that you Because the score is based on information in your credit history, it is very important that you review the credit-related information that is being furnished to make sure it is accurate. Credit review the credit-related information that is being furnished to make sure it is accurate. Credit records may vary from one company to another.records may vary from one company to another.

If you have questions about your credit score or the credit information that is furnished to you, If you have questions about your credit score or the credit information that is furnished to you, contact the consumer reporting agency at the address and telephone number provided with this contact the consumer reporting agency at the address and telephone number provided with this notice, or contact the lender, if the lender developed or generated the credit score. The consumer notice, or contact the lender, if the lender developed or generated the credit score. The consumer reporting plays no part in the decision to take any action on the loan application and is unable to reporting plays no part in the decision to take any action on the loan application and is unable to provide you with specific reasons for the decision on a loan application.provide you with specific reasons for the decision on a loan application.

If you have questions concerning the terms of the loan, contact the lender.If you have questions concerning the terms of the loan, contact the lender.

______________________________________________________________________________ApplicantApplicant DateDate

________________________________________________________________________________________________________________________________________________________ Loan Originator Loan Originator Date DateApplicant Applicant DateDate

Actions Not Required of the LenderActions Not Required of the LenderWith this NoticeWith this Notice

No originator is required toNo originator is required to Explain the information provided pursuant to subsection Explain the information provided pursuant to subsection

(f)(f) Disclose any information other than the credit score or Disclose any information other than the credit score or

key factorskey factors Disclose any credit score or related information obtained Disclose any credit score or related information obtained

by the user after the loan has closedby the user after the loan has closed Provide more than one disclosure per transactionProvide more than one disclosure per transaction Provide the disclosure required by this subsection when Provide the disclosure required by this subsection when

another person has made the disclosure to the another person has made the disclosure to the consumer for that loan transactionconsumer for that loan transaction

No liability on the part of any originator pursuant No liability on the part of any originator pursuant to this subsection for the content of the to this subsection for the content of the information or for the omission of any information information or for the omission of any information within the report provided by the CRAwithin the report provided by the CRA

Disputes & ReinvestigationsDisputes & Reinvestigations

Section 611 (f) Allows for a reseller to Section 611 (f) Allows for a reseller to convey a notice of dispute directly with the convey a notice of dispute directly with the relevant information provided by the relevant information provided by the consumer, to each CRA that provided the consumer, to each CRA that provided the reseller the information that is subject to reseller the information that is subject to dispute.dispute. The CRA will notify the consumer through the The CRA will notify the consumer through the

reseller upon completion of the reinvestigation reseller upon completion of the reinvestigation as to the accuracy or completeness of the as to the accuracy or completeness of the disputed information in the file.disputed information in the file.

The reseller shall immediately convey such The reseller shall immediately convey such notice to the consumer, including any notice of notice to the consumer, including any notice of deletion by telephone deletion by telephone

Disputes & ReinvestigationsDisputes & Reinvestigations Section 623 (a) (8) Allows the consumer to dispute Section 623 (a) (8) Allows the consumer to dispute

information directly in writing with the furnisher of information directly in writing with the furnisher of credit at the address specified by the furnisher credit at the address specified by the furnisher effective 12/1/04.effective 12/1/04. Furnisher must conduct the reinvestigation, review Furnisher must conduct the reinvestigation, review

information and complete the investigation within a 30 day information and complete the investigation within a 30 day timeframetimeframe

If information is inaccurate, the furnisher must notify any If information is inaccurate, the furnisher must notify any CRA to which it furnished the information and provide any CRA to which it furnished the information and provide any information necessary to make the information accurate.information necessary to make the information accurate.

This method is not allowed if the notice is submitted by or This method is not allowed if the notice is submitted by or is submitted on a form supplied to the consumer by a is submitted on a form supplied to the consumer by a credit repair organizationcredit repair organization

This requirement does not apply if the furnisher of credit This requirement does not apply if the furnisher of credit determines that the dispute is frivolous, but the furnisher determines that the dispute is frivolous, but the furnisher of credit must notify the consumer within 5 days of such of credit must notify the consumer within 5 days of such determinationdetermination

Accuracy Guidelines & RegsAccuracy Guidelines & Regs

Section 623(a) (1) Prohibits the reporting Section 623(a) (1) Prohibits the reporting of information with actual knowledge of of information with actual knowledge of errors or specific knowledge, other than errors or specific knowledge, other than solely allegations by the consumer, that solely allegations by the consumer, that would cause a reasonable person to have would cause a reasonable person to have substantial doubts about the accuracy of substantial doubts about the accuracy of the informationthe information The furnisher of credit has a duty to correct the The furnisher of credit has a duty to correct the

information and shall not thereafter furnish to information and shall not thereafter furnish to the CRA any information that remains not the CRA any information that remains not complete or accuratecomplete or accurate

Negative Credit NoticeNegative Credit Notice Section 623 (a) (7) (A) If any financial institution Section 623 (a) (7) (A) If any financial institution

that extends credit and regularly and in the that extends credit and regularly and in the normal course of business furnishes negative normal course of business furnishes negative information to a CRA regarding credit extended to information to a CRA regarding credit extended to a customer, the financial institution shall provide a customer, the financial institution shall provide a notice of such furnishing of negative a notice of such furnishing of negative information to the consumer in writinginformation to the consumer in writing Can be provided prior to or no later than 30 days after Can be provided prior to or no later than 30 days after

furnishing the negative information to the CRAfurnishing the negative information to the CRA After providing this notice to the consumer, no new After providing this notice to the consumer, no new

notices must be given for subsequent negative reportingnotices must be given for subsequent negative reporting Notice can be given with any billing statement as long as Notice can be given with any billing statement as long as

clear and conspicuousclear and conspicuous

Risk Based Pricing Risk Based Pricing Adverse Action Notice Adverse Action Notice

effective 12/1/04effective 12/1/04 FTC & the FRB must address the form, content, time and FTC & the FRB must address the form, content, time and

manner of delivery of notice manner of delivery of notice Section 615 (h) states in general if any creditor uses a Section 615 (h) states in general if any creditor uses a

consumer report in connection with an application for or consumer report in connection with an application for or extension of credit on material terms less favorable than extension of credit on material terms less favorable than the most favorable terms available to a substantial the most favorable terms available to a substantial proportion of the consumers from or through that furnisher proportion of the consumers from or through that furnisher of credit, that company shall provide written, oral or of credit, that company shall provide written, oral or electronic notice to the consumer.electronic notice to the consumer. Notice may be provided at the time of applicationNotice may be provided at the time of application Notice must at minimum state terms being offered are based Notice must at minimum state terms being offered are based

on information from a credit report & that the consumer may on information from a credit report & that the consumer may obtain a free copy of the report from the CRA at no charge and obtain a free copy of the report from the CRA at no charge and include contact information for the CRAinclude contact information for the CRA

The FTC and FRB will jointly prescribe the rules addressing the The FTC and FRB will jointly prescribe the rules addressing the form, content, and delivery time form, content, and delivery time

Will be coming up for commentWill be coming up for comment

Prescreen List Opt-OutsPrescreen List Opt-Outs Section 615 (d) (2) (B) States that prescreen Section 615 (d) (2) (B) States that prescreen

disclosures on written solicitations must be disclosures on written solicitations must be presented in a type and size as to be simple, easy presented in a type and size as to be simple, easy to understand as established by the FTC, Federal to understand as established by the FTC, Federal Reserve, and the National Credit Union Reserve, and the National Credit Union Administration.Administration. The final form must be issued by 12/4/05The final form must be issued by 12/4/05 Prescreen Opt-out duration has now been extended to 5 Prescreen Opt-out duration has now been extended to 5

years from the current two years.years from the current two years. The FTC must actively publicize the toll free number for The FTC must actively publicize the toll free number for

the opt-out system 888-567-8688the opt-out system 888-567-8688 The FRB must study the ability of the consumer to avoid The FRB must study the ability of the consumer to avoid

receiving written unsolicited offers for credit or insurance receiving written unsolicited offers for credit or insurance and the potential impact of further restrictions on and the potential impact of further restrictions on providing such offers to consumers. The FRB must deliver providing such offers to consumers. The FRB must deliver a report regarding that study to Congress by 12/4/05.a report regarding that study to Congress by 12/4/05.

Prescreen Opt Outs Prescreen Opt Outs The notice must allow consumers to prohibit all The notice must allow consumers to prohibit all

covered marketing solicitations or elect to covered marketing solicitations or elect to prohibit only certain solicitations from affiliates.prohibit only certain solicitations from affiliates.

The opt out must be clear concise and SimpleThe opt out must be clear concise and Simple Upon the expiration of the 5 year opt out term, Upon the expiration of the 5 year opt out term,

the consumer must receive another opt out the consumer must receive another opt out election notice before receiving a covered election notice before receiving a covered solicitationsolicitation This section does not apply to an entity with whom the This section does not apply to an entity with whom the

consumer has a pre-existing business relationship, or is consumer has a pre-existing business relationship, or is providing an employee benefit or service, or is providing an employee benefit or service, or is responding to a consumer request, or if compliance responding to a consumer request, or if compliance would restrict compliance with certain state insurance would restrict compliance with certain state insurance lawslaws

Identity Theft Initiatives IncludedIdentity Theft Initiatives Included Section 605 A (a) Initial Fraud Alerts for 90 days without a Section 605 A (a) Initial Fraud Alerts for 90 days without a

theft report and can request a free credit report within 3 theft report and can request a free credit report within 3 daysdays

Section 605 A (b) Extended Fraud alerts with a formal police Section 605 A (b) Extended Fraud alerts with a formal police report about the Identity theft for 7 years. Excludes report about the Identity theft for 7 years. Excludes consumer from prescreened lists for 5 years and the consumer from prescreened lists for 5 years and the consumer can request 2 free credit reports over the next 12 consumer can request 2 free credit reports over the next 12 monthsmonths

Active duty can be put into the consumer’s credit file at the Active duty can be put into the consumer’s credit file at the consumer’s request for 12 months and exclude consumer consumer’s request for 12 months and exclude consumer from prescreened lists for 2 yearsfrom prescreened lists for 2 years

Each CRA must refer alerts to the other CRAs upon receipt Each CRA must refer alerts to the other CRAs upon receipt of request for postingof request for posting

CRAs must allow consumer requests for Fraud alerts and CRAs must allow consumer requests for Fraud alerts and Active Duty alerts to be easy and simple, including by Active Duty alerts to be easy and simple, including by telephonetelephone

Duties of Users of Credit Reports Duties of Users of Credit Reports Containing Containing

Fraud or Active Duty AlertsFraud or Active Duty Alerts May not establish a new credit account, May not establish a new credit account,

issue a new card or increase the credit limit issue a new card or increase the credit limit on an existing account without contacting on an existing account without contacting the consumer in the manner requested to the consumer in the manner requested to determine request is not the result of determine request is not the result of identity theftidentity theft

May not transfer, sell, or place for collection May not transfer, sell, or place for collection a debt that a creditor has been notified is a debt that a creditor has been notified is blocked by a nationwide CRA because the blocked by a nationwide CRA because the debt was caused by Identity Theftdebt was caused by Identity Theft

Truncation of Truncation of Credit Card NumbersCredit Card Numbers

No person that accepts a credit card or No person that accepts a credit card or debt card shall print the expiration date or debt card shall print the expiration date or more than the last 5 digits of the card more than the last 5 digits of the card number upon any receipt at the point of number upon any receipt at the point of sale or transactionsale or transaction Applicable only to electronically printed Applicable only to electronically printed

receipts, not handwritten or imprinted receiptsreceipts, not handwritten or imprinted receipts Effective 12/1/07 for machines put in use prior Effective 12/1/07 for machines put in use prior

to 1/1/05to 1/1/05 Effective 12/4/05 for machines put in use after Effective 12/4/05 for machines put in use after

1/1/051/1/05

Time Will TellTime Will Tell

Will all of the Changes Congress Will all of the Changes Congress made “in the Consumer’s best made “in the Consumer’s best interest” really be in the Consumer’s interest” really be in the Consumer’s best interest?best interest?

NAMB will be working with The FTC NAMB will be working with The FTC by giving input on various up-coming by giving input on various up-coming proposed rules impacting our proposed rules impacting our delivery of credit system.delivery of credit system.

Thank you for your attention.Thank you for your attention.