CUNA Regulatory Comment Call
December 19, 2003
Fed and FTCs Interim Final and Proposed Rules on FCRA Effective Dates
(Not a Major Rule)
- The Fair and Accurate Credit Transactions (FACT) Act was enacted earlier this month and permanently extends the federal preemptions for credit reporting under the Fair Credit Reporting Act (FCRA). It also creates a number of important new consumer protections designed to help prevent identity theft and assist consumers who become victims of this rapidly growing crime.
- The FACT Act also requires the Federal Reserve Board (Fed) and the Federal Trade Commission (FTC) to issue rules establishing effective dates for provisions of the FACT Act that do not already have specific dates.
- The Fed and FTC will establish December 31, 2003 as the effective date for the preemption provisions of the FACT Act, as Congress had intended. For other provisions, December 1, 2004 will be the effective date for provisions that may require significant changes to business procedures, and March 31, 2004 will be the date for a small number of provisions that will not require such changes.
- Comments are due no later than January 12, 2004. Please submit your comments to CUNA by January 7, 2004.
Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Associate General Counsel Mary Dunn at firstname.lastname@example.org and to Assistant General Counsel Jeff Bloch at email@example.com; or mail them to Mary and Jeff in c/o CUNAs Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, DC 20004-2601. You may also contact us at 800-356-9655, ext. 6732, if you would like a copy of the rules, or you may access them on the Internet at the following address: http://www.federalreserve.gov/boarddocs/press/bcreg/2003/20031216/default.htm
President Bush early this month signed into law the FACT Act that permanently extends the federal preemptions for credit reporting under the FCRA. The new law also creates a number of important new consumer protections designed to help prevent identity theft and assist consumers who become victims of this rapidly growing crime. It also contains new restrictions on information sharing and creates a new federal commission that will coordinate financial education efforts at the national, state, and local levels.
The FACT Act will be implemented through a number of new rules that will be developed next year. Access below for a special issue of RegWatch that describes the significant provisions of the FACT Act: http://www.cuna.org/reg_advocacy/member/regwatch/regwatch.html
The FACT Act requires the Fed and the FTC to adopt final rules establishing the effective dates for provisions of the FACT Act that do not already have specific effective dates. These rules must be adopted within two months after the enactment of the FACT Act, which will be by February 4, 2004.
DESCRIPTION OF THE INTERIM FINAL AND PROPOSED RULES
The Fed and FTC are requesting comment on interim final and proposed rules that will establish effective dates for certain provisions of the FACT Act. The interim final rules will establish December 31, 2003 as the effective date for the preemption provisions of the FACT Act, as Congress had intended.
The proposed rules establish effective dates for other provisions of the FACT Act that do not already have effective dates. These rules will establish March 31, 2004 as the effective date for provisions of the FACT Act that do not require significant changes to business procedures. With regard to other provisions that will likely entail significant changes to business procedures, the proposed rules will make these provisions effective on December 1, 2004 to allow a reasonable time to establish systems to comply with the statute.
Many of the significant provisions of the FACT Act that impact credit unions will have an effective date of December 1, 2004. This is generally the latest effective date permitted under the FACT Act. The provisions with an effective date of March 31, 2004 are a small number of those that clarify or address issues that are self-effectuating and do not need significant preparation. These include certain statutes of limitation provisions, definitions, clerical amendments, certain liability and enforcement provisions for those that furnish information on delinquent accounts, actions that can be taken against credit bureaus, and provisions that address certain sharing of information in connection with employee investigations.
QUESTIONS TO CONSIDER REGARDING THE FED AND FTC INTERIM AND FINAL RULES REGARDING FACT ACT EFFECTIVE DATES
- Do you agree that an effective date of December 1, 2004 for the substantive
provisions of the FACT Act will be sufficient?
- Other comments?
Eric Richard General Counsel (202) 508-6742 firstname.lastname@example.org |
Mary Mitchell Dunn SVP & Associate General Counsel (202) 508-6736 email@example.com
Jeffrey Bloch Assistant General Counsel (202) 508-6732 firstname.lastname@example.org
Catherine Orr Senior Regulatory Counsel (202) 508-6743 email@example.com