AGENCIES PUBLISH FINAL RULES ON CREDIT REPORTING ACCURACY AND INTEGRITY AND DIRECT DISPUTES
Several federal agencies, including the Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision and the Federal Trade Commission, have issued final rules and guidelines implementing Section 312 of the Fair and Accurate Credit Transactions Act of 2003 (FACTA). See 74 Fed. Reg. 31484 (July 1, 2009); 74 Fed. Reg. 31529 (July 1, 2009). See also Alerts dated June 12, 2009, Nov. 30, 2007 and Mar. 22, 2006.
FACTA Section 312(a) amends the Fair Credit Reporting Act (FCRA) to require the agencies to (i) establish, maintain and update guidelines for use by furnishers regarding the accuracy and integrity of the information furnished to consumer reporting agencies and (ii) prescribe regulations requiring furnishers to establish reasonable policies and procedures for implementing the guidelines. FACTA Section 312(c) amends the FCRA to require the agencies to prescribe regulations identifying circumstances under which a furnisher will be required to reinvestigate a dispute concerning the accuracy of information in a consumer report based on a consumer’s direct request.
Accordingly, any entity that furnishes information to consumer reporting agencies will need to establish or revise policies and procedures regarding (i) information furnishing and (ii) reinvestigation of consumer disputes for compliance with the new rules and guidelines.
The rules are effective July 1, 2010.
- Elizabeth Anstaett and