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FRB: Request for Comments on Section 312 of FACT Act

ABA Contact: Nessa Feddis
Comments Due: May 22, 2006
Disposition: Filed May 19, 2006
Published: 71 Federal Register 14419; March 22, 2006
Final Rule: 74 Federal Register 31484; July 1, 2009

Summary

Summary Banking agencies and FTC are requesting comment to gather information for developing the guidelines and regulations required under Section 312 of the FACT Act. Under that section, the agencies must:

1. Establish guidelines for furnishers of information regarding the accuracy and integrity of the information they furnish to consumer reporting agencies, and

2. Prescribe regulations that require furnishers to establish reasonable policies and procedures for implementing the guidelines.

3. Prescribe regulations that identify circumstances under which a furnisher shall be required to reinvestigate a dispute concerning the accuracy of information based on the direct request of the consumer.

The agencies, in seeking information, have posed a number of specific questions.

See ABA's summary.

ABA Comments

ABA noted that the credit reporting system works for everyone and that any tinkering that is necessary should be achieved through industry initiatives rather than through regulatory intervention.  Furnishers have incentives to ensure an accurate, reliable, and efficient system that consumers trust. Moreover, onerous regulations may discourage furnishers from reporting, triggering a chain reaction that in the end would hurt consumers.

2006 Regulations Chart
ABA Comment Letter
Federal Register
Final Rule