Amendments to Regulation V.
The FACT Act provides that if any financial institution (1) extends credit and regularly and in the ordinary course of business furnishes information to a nationwide consumer reporting agency; and (2) furnishes negative information to such an agency regarding credit extended to a customer, the institution must provide a clear and conspicuous notice about furnishing negative information, in writing, to the customer. Negative information means information concerning a customer's delinquencies, late payments, insolvency, or any form of default.
The FACT Act defines the term financial institution to have the same meaning as in the privacy provisions of the Gramm-Leach-Bliley Act. The term financial institution includes not only institutions regulated by the Board and other federal banking agencies, but also includes other financial entities, such as merchant creditors that extend credit and report negative information. The Board's model notices can be used by all financial institutions, as defined by the act.
The amendments became effective July 16, 2004.
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|Publication:||Federal Reserve Bulletin|
|Date:||Jun 22, 2004|
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