Alert June 16, 2009

Federal Banking Agencies and FTC Approve Final Rule Implementing Accuracy and Integrity Provisions of FACTA

The federal banking agencies and the FTC approved for publication in the Federal Register a final rule and guidelines that implement section 312 of the Fair and Accurate Credit Transactions Act. The final rules (1) provide guidelines for furnishers of consumer credit information concerning the accuracy and integrity of the information furnished to consumer reporting agencies, (2) require furnishers of consumer credit information to establish reasonable policies and procedures for implementing the guidelines, and (3) implement a provision of FACTA that allows consumers to directly dispute inaccurate consumer report information. The federal banking agencies and the FTC also issued an advance notice of proposed rulemaking to obtain more information to aid in considering possible additions to the guidelines. Questions the proposal asks include: (1) under what circumstances would a furnisher of consumer credit information be expected to provide an account opening date to a consumer reporting agency to promote the integrity of the information, and (2) whether furnishers of consumer credit information should be expected to provide any other types of information to a consumer reporting agency to promote integrity. Click here for the final rule and guidelines and here for the proposal.