Summary: BCFP Interim Final Rule with Request for Public Comment Regarding Summaries of Rights under the Fair Credit Reporting Act (Regulation V)

Bureau of Consumer Financial Protection
Prepared by the NASCUS Legislative & Regulatory Division
October 2018

The Bureau of Consumer Financial Protection (Bureau) is issuing an interim final rule to update the Bureau’s model forms for the “Summary of Consumer Identity Theft Rights” and the “Summary of Consumer Rights” to incorporate a new “Notice of Rights” in accordance with a new provision of the Fair Credit Reporting Act (FCRA) and as required under the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155).

The interim final rule became effective on September 21, 2018.  Comments on the rule are due by November 19, 2018.  The Interim final rule can be found here.

The Economic Growth, Regulatory Relief and Consumer Protection Act (S.2155) added Section 605A(i)(5) to the Fair Credit Reporting Act (FCRA), which became effective on September 21, 2018.   This new section requires that a new notice of rights be included whenever a consumer is required to receive a summary of rights under Section 609 of the FCRA. The new notice of rights is not currently reflected in the existing model forms (found in Appendices I and K) that were published in November 2012.  The interim final rule amends the model forms to incorporate the new required notice of rights, amends the model form in Appendix I (“Summary of Consumer Identity Theft Rights”) to reflect a statutory change to the minimum duration of initial fraud alerts and makes adjustments to update contact information for certain FCRA enforcement agencies in the model form in Appendix K (“Summary of Consumer Rights”).

Section 609 of the FCRA requires the Bureau to prepare two consumer disclosures: a model summary of rights to obtain/dispute information in consumer reports and to obtain credit scores (“Summary of Consumer Rights” – Appendix I) and a model summary of rights of identity theft victims (“Summary of Consumer Identity Theft Rights” – Appendix K). The “Summary of Consumer Rights” explains certain major consumer rights under the FCRA such as the right to obtain a copy of a consumer report, the frequency/circumstances under which a consumer is entitled to receive a free consumer report, the right to dispute information in a consumer’s file and the right to obtain a credit score.  Whereas the “Summary of Consumer Identity Theft Rights” explains the rights consumer have under the FCRA when they seek to remedy the effects of fraud or identity theft including the right to place a fraud alert and block certain information from appearing in a consumer report.

Regulation V provides that use or distribution of the Bureau’s model form and disclosures in Appendices I and K or substantially similar forms and disclosures, will constitute compliance with any FCRA section or subsection requiring that such forms and disclosures be used by or supplied to individuals.