FEDERAL BANKING AGENCIES ISSUE FINAL FACT ACT RULES ON MEDICAL INFORMATION
The Board of Governors of the Federal Reserve System,Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency and Office of Thrift Supervision have issued substantively identical final rules implementing Section 411 of the Fair and Accurate Credit Transactions Act of 2003 regarding medical information. The rules, which are substantially similar to the rules adopted by the Agencies on an interim final basis in June 2005, create exceptions to the Fair Credit Reporting Act’s general prohibition on creditors obtaining or using medical information pertaining to a consumer in connection with any determination of the consumer’s eligibility for credit. Under these exceptions, creditors may obtain or use medical information in connection with credit eligibility determinations where necessary and appropriate for legitimate purposes. In addition, the final rules create limited exceptions to permit affiliates to share medical information with each other without becoming consumer reporting agencies. The final rules will take effect on April 1, 2006.