Printer Friendly

Amendments to Regulation V.

The Federal Reserve Board on June 8, 2004, issued amendments to Regulation V (Fair Credit Reporting), which implements the Fair Credit Reporting Act (FCRA), that would add model notices for financial institutions to use if they furnish negative information to consumer reporting agencies. The amendments also provide guidance to financial institutions regarding the use of the model notices. The Board is publishing the model notices pursuant to the Fair and Accurate Credit Transactions Act (FACT Act) amendments to the FCRA.

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.
COPYRIGHT 2004 Board of Governors of the Federal Reserve System
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Announcements
Publication:Federal Reserve Bulletin
Geographic Code:1USA
Date:Jun 22, 2004
Previous Article:Proposed amendment to Regulation J.
Next Article:Amendments to Regulation CC, Appendix A.

Related Articles
Final regulations defining research or experimental expenditures.
Limiting retroactive legislation in Canada.
Amendments to the sec. 1060 and 338(b) regulations conforming allocation of purchase price to the 1993 intangibles legislation.
Fee caps latest weapon in tobacco wars.
Winter activities confirm institute's expertise as TEI slaloms way to center platform with golden liaison meetings, amicus brief. (TEI's Own Olympic...
Code V reporting on nonstatutory stock options: December 14, 2001.
Official notice of bylaws amendment proposal. (National Association News).
Federal religious liberty law struck down.
Amendments to Regulation J.
Amendment to Regulation CC, Appendix A.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters