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AMERICAN FINANCIAL SERVICES ASSOCIATION RESPONDS TO NAAG'S STATEMENTS REGARDING PREEMPTION PROVISION IN CREDIT REPORTING BILL

AMERICAN FINANCIAL SERVICES ASSOCIATION RESPONDS TO NAAG'S STATEMENTS
 REGARDING PREEMPTION PROVISION IN CREDIT REPORTING BILL
 WASHINGTON, July 31 /PRNewswire/ -- The American Financial Services Association issued the following response to the National Association of Attorneys General's statements regarding preemption provision in credit reporting bill:
 Preemption is a critical ingredient in the recipe for comprehensive credit reporting reform. The Consumer Reporting Reform Act (H.R. 3596) would impose greatly increased responsibilities on credit reporting agencies and creditors and new liability for failure to comply.
 In recognition of these significantly increased burdens, the federal legislation would also insure that the regulatory burdens were consistent. The credit reporting system, as a nationwide information clearinghouse, would be seriously hampered if credit bureaus and creditors, in addition to the proposed comprehensive set of requirements, were also subject to 50 different and sometimes conflicting state laws.
 The National Association of Attorneys General's (NAAG) attack on the preemption provision in H.R. 3596 is overreaching and misleading. Their characterization that they would be "powerless to protect their own citizens" (see p. 2, NAAG July 31, 1992, press release) under the proposed federal law is a mischaracterization of the act. Under the proposed bill, states and their attorneys general would still have the ability to enforce the provisions of the comprehensive federal law by legal action.
 The Federal Trade Commission and consumers themselves would gain increased ability to enforce and recover damages under the Fair Credit Reporting Act.
 The credit industry faces the prospect of the most comprehensive consumer protection law in the credit reporting area. Their ability to comply with the myriad of proposed, specific requirements would be unnecessarily complicated if different requirements could also be imposed by the states. A uniform standard for credit reporting nationwide would also benefit consumers, who would be better able to understand the duties and responsibilities of all parties with a consistent credit reporting scheme that applies no matter where they live.
 The NAAG's position could be a costly one -- they seem ready to relinquish the prospect of major comprehensive credit reporting reform by attacking a provision that is a necessary and vital part of the package.
 -0- 7/31/92
 /CONTACT: Fran Smith of the American Financial Services Association, 202-296-5544/ CO: American Financial Services Association; National Association of
 Attorneys General ST: District of Columbia IN: FIN SU:


KD -- DC025 -- 5793 07/31/92 17:20 EDT
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Date:Jul 31, 1992
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