CUNA Comment Letter

Letter to NCUA on Fair Credit Reporting Act (FCRA) Proposed Rule

January 31, 2001

Robert Fenner, Esq.
General Counsel
National Credit Union Administration
1775 Duke Street
Alexandria, Virginia 22314-3428

Re: Fair Credit Reporting Act (FCRA) Proposed Rule

Dear Mr. Fenner:

The National Credit Union Administration (NCUA) issued a proposed rule on the FCRA this past October designed to assist federal credit unions in drafting the initial privacy notices that must be sent to members by July 1, 2001. The FCRA provides consumers with the ability to "opt out" of disclosures of information among affiliates. The privacy notices must include the disclosures that credit unions must make under the FCRA, and the proposed FCRA rule is specifically designed to provide guidance to credit unions regarding these disclosures.

In order to avoid a separate mailing of the privacy notices, credit unions are likely to include the notices with the first quarter statement mailings that will be mailed to members in early April. In order to send the notices at that time, it appears that credit unions must now proceed and complete the drafting of the privacy notices without the benefit of the guidance that will be provided in the final FCRA rule.

In the absence of the final FCRA rule, we would appreciate it if NCUA would provide guidance to federal credit unions on how to include the FCRA disclosures in the privacy notices that must be sent by July 1. We are specifically interested in learning more about examiner expectations with regard to the privacy notices and on which credit union service organizations would be considered "affiliates" for purposes of the FCRA disclosures. Also, any information on the timing of the final FCRA rule would also be helpful.

If you have any questions regarding this letter, please call Jeff Bloch at (202) 218-7795.

Sincerely,

Eric Richard
General Counsel
Credit Union National Association