b'FTC Announces Notices of Proposed Rulemakingconnection with extending credit for the purchase of its Related to FCRA home-alarm products, and that based on information In August, the FTC announced five Notices of Proposedin credit reports the company would then charge Rulemaking and requested public comment on theircertain customers higher activation fees without proposed changes to the rules that implement the FCRA.simultaneously providing those customers with the The FTC proposed limiting the scope of the five rules torisk-based pricing notice required by FCRA. Under the apply only to motor vehicle dealers, asserting that thesettlement, the company agreed to pay a $600,000 proposed changes would bring the FCRA in line with thecivil money penalty. Dodd-Frank Act. For instance, as amended, the scope of the Furnisher Rule would be narrowed from all furnishersSantander Consumer USA Inc. Pays $4.75 Million to to those primarily engaged in the sale and servicingResolve Alleged FCRA Violationsof motor vehicles. The proposed changes were to theIn December, the CFPB announced that it had entered following five, existing rules: into a consent order with Santander Consumer USA The Address Discrepancy Rule, which outlines theInc., a national auto lender and auto loan servicer, information collection requirements for consumerresolving allegations that the company had violated reporting agencies when they receive a notice ofthe FCRA and failed to comply with a 2015 consent address discrepancy. order concerning similar alleged conduct. The CFPB alleged that from January 2016 through at least August The Affiliate Marketing Rule, which provides2019, the Santander furnished information to CRAs that consumers the right to restrict a person from usingcontained errors and contradictory information, when certain information obtained from an affiliate toit knew or should have known about those errors. For make solicitations to the consumer. example, the company allegedly reported inaccurate dates of first delinquency for delinquent accounts, and The Furnisher Rule, which requires entities thatalso reported dates of first delinquency for accounts furnish information to CRAs to establish policies andthat were current or paid in full. The company also procedures regarding the accuracy and integrity of theallegedly failed to update or correct inaccurate information relating to consumers provided to a CRA. information, or maintain reasonable written procedures for reporting accurate information to CRAs. The consent The Pre-Screen Opt-Out Notice Rule, whichorder requires that Santander pay a $4.75 million civil outlines requirements for those who use consumermoney penalty to the Bureau. report information to make unsolicited credit or insurance offers to consumers. Looking Ahead to 2021The Risk-Based Pricing Rule, which requires those who use information from a consumer report toIn 2021, we do not expect to see a significant increase offer less favorable terms to consumers to providein public enforcement actions concerning credit them with a notice about the use of such data. reporting or credit repair services, but we do expect the CFPB and FTC to remain active in this area, The FTC noted that it also sought comment on theespecially in policing credit repair service provides general effectiveness of the five rules including:that charge advance-fees or engaged in deceptive (i) whether there is a continuing need for specificadvertising. The Biden administration has indicated provisions of each rule; (ii) the benefits each rule hassome interest in creating a publicly-run credit reporting provided to consumers; (iii) what modifications, if any,agency within the CFPB that would compete with should be made to each rule to benefit consumers andexisting CRAs, but whether this initiative will be a top businesses; and (iv) what modifications, if any, shouldpriority for the administration or whether the proposal be made to each rule to account for changes in relevanthas wide support in Congress is unknown. technology or economic conditions. Comments were due by November 30, 2020. What to WatchCFPB Settles with Home-Alarm Company Alder Holdings, LLC for Using Consumers Credit ScoresContinued enforcement activity by CFPB and FTC Without Proper Noticeagainst credit repair service providers.In December, the CFPB announced that it and theFTCs response to comments on FCRA rulemaking.Arkansas Attorney General had reached a settlement with Utah-based home-alarm company Alder Holdings,Focus on furnishers and CRAs compliance with LLC, resolving allegations that the company hadCOVID-19 related requirements.violated FCRA by failing to provide customers with risk-based pricing notices. The CFPB alleged that theDevelopments related to possible publicly-run CRA.company would review customers credit reports in 43'