Alert October 02, 2012

FTC Focused on FCRA Enforcement

Robert Schoshinski, Assistant Director of the Division of Privacy and Identity Protection of the FTC, testified before the House Subcommittee on Financial Institutions and Consumer Credit. The central theme of Mr. Schoshinksi’s testimony was that strong enforcement of the Fair Credit Reporting Act remains one of the FTC’s top priorities. The testimony highlighted a number of areas, including: (1) the agency’s commitment to educating consumers and businesses about consumer reports, credit scores and their rights and obligations under the FCRA; (2) the FTC’s recent FCRA enforcement work; (3) the problems faced by consumers with limited or no credit history, referred to as “thin files,” and the agency’s continued interested in marketplace products currently using alternative data to provide consumers with greater access to credit opportunities; and (4) the impact of medical debt on consumer reports and credit scoring models.