AGENCIES ISSUE FACTA RED FLAG AND ADDRESS DISCREPANCY RULES
The Office of the Comptroller of the Currency, Federal Reserve Board, Federal Deposit Insurance Corporation, Office of Thrift Supervision, National Credit Union Administration and Federal Trade Commission have issued proposed rules implementing Sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003 (FACTA).
Section 114 of the FACTA directs the Agencies to jointly (i) establish guidelines for financial institutions and creditors identifying patterns, practices and specific forms of activity that indicate the possible existence of identity theft and (ii) require financial institutions and creditors to establish reasonable policies and procedures for implementing the guidelines. The proposed rules include a provision requiring credit and debit card issuers to assess the validity of a change of address request under certain circumstances. Section 315 requires the agencies to provide guidance regarding reasonable policies and procedures that a user of consumer reports must employ when such a user receives a notice of address discrepancy from a consumer reporting agency.
Comments on the proposed rules must be submitted on or before September 18, 2006.