+--------+---+----------------------------+--------+------------------+---+
| # O    | # |                            |        |                  | # |
|        | # |                            |        |                  |   |
| ##     | # |                            |        |                  |   |
|        | # |                            |        |                  | # |
|        |   |                            |        |                  |   |
|        | O |                            |        |                  |   |
|        | C |                            |        |                  | # |
|        | C |                            |        |                  | # |
|        |   |                            |        |                  |   |
|        | 2 |                            |        |                  |   |
|        | 0 |                            |        |                  |   |
|        | 0 |                            |        |                  |   |
|        | 5 |                            |        |                  |   |
|        | - |                            |        |                  |   |
|        | 3 |                            |        |                  |   |
|        | 9 |                            |        |                  |   |
+--------+---+----------------------------+--------+------------------+---+
|        | * |                            |        |                  |   |
|        | * |                            |        |                  |   |
|        | O |                            |        |                  |   |
|        | C |                            |        |                  |   |
|        | C |                            |        |                  |   |
|        | B |                            |        |                  |   |
|        | U |                            |        |                  |   |
|        | L |                            |        |                  |   |
|        | L |                            |        |                  |   |
|        | E |                            |        |                  |   |
|        | T |                            |        |                  |   |
|        | I |                            |        |                  |   |
|        | N |                            |        |                  |   |
|        | * |                            |        |                  |   |
|        | * |                            |        |                  |   |
+--------+---+----------------------------+--------+------------------+---+
| ## Com |   |                            |        |                  |   |
| ptroll |   |                            |        |                  |   |
| er of  |   |                            |        |                  |   |
| the Cu |   |                            |        |                  |   |
| rrency |   |                            |        |                  |   |
|        |   |                            |        |                  |   |
| > A    |   |                            |        |                  |   |
| dminis |   |                            |        |                  |   |
| trator |   |                            |        |                  |   |
| > of   |   |                            |        |                  |   |
| > Na   |   |                            |        |                  |   |
| tional |   |                            |        |                  |   |
| >      |   |                            |        |                  |   |
|  Banks |   |                            |        |                  |   |
+--------+---+----------------------------+--------+------------------+---+
| ## Su  |   | Fair Credit Reporting      | ##     | Final Rule       |   |
| bject: |   | Medical Information        | Descri |                  |   |
|        |   | Regulations                | ption: |                  |   |
+--------+---+----------------------------+--------+------------------+---+

**TO:** Chief Executive Officers of All National Banks, Federal Branches
and Agencies, Department and Division Heads, and All Examining Personnel

The Office of the Comptroller of the Currency (OCC) issued the attached
final rule, which was published in the *Federal Register* on November
22, 2005. The Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, the Office of Thrift Supervision,
and the National Credit Union Administration (NCUA) issued substantively
identical final rules. The final rules implement section 411 of the Fair
and Accurate Credit Transactions Act of 2003 (FACT Act). The final rules
are substantially identical to the interim final rules issued in June
2005.

Section 411 of the FACT Act prohibits creditors from obtaining or using
medical information pertaining to a consumer in connection with any
determination of the consumer's eligibility, or continued eligibility,
for credit. The statute directs the federal banking agencies and the
NCUA to prescribe regulations to permit transactions deemed necessary
and appropriate to protect legitimate operational, transactional, risk,
consumer, and other needs. Accordingly, the final rules create
exceptions to permit creditors to obtain and use medical information
that is typically considered in credit underwriting.

In the OCC's rule, these exceptions apply to national banks, federal
branches and agencies, their respective subsidiaries (both operating and
financial subsidiaries), and any other person that participates as a
creditor in a transaction involving one of these entities such as
arrangers and assignees of credit.

Section 411 also restricts the sharing of medical information among
affiliated companies, except for purposes specifically mentioned in the
statute. The final rules contain these statutory exceptions but further
provide that a creditor may share medical information with an affiliate
for use in making credit decisions consistent with the exceptions in the
rule, or by order of the OCC.

By contrast to the broad scope provisions for the general exceptions
discussed above, these affiliate sharing exceptions in the OCC's rule
apply only to national banks, federal branches and agencies, and their
respective operating subsidiaries. This narrower scope stems from the
more restrictive grant of rulemaking authority in the FACT Act for these
provisions.

Additionally, section 411 limits the ability of any person to disclose
medical information that it receives from a credit bureau or an
affiliate, to any other person, except as necessary to carry out the
purpose for which the information was initially disclosed. The final
rules reiterate this statutory limitation without further
interpretation. This provision also applies only to national banks,
federal branches and agencies, and their respective operating
subsidiaries.

For questions concerning this final rule, contact Amy Friend, assistant
chief counsel at (202) 874-5200; Michael Bylsma, director, Community and
Consumer Law at (202) 874-5750; Patrick T. Tierney, senior attorney,
Legislative and Regulatory Activities Division at (202) 874-5090; or
Pamela Mount, national bank examiner, Compliance Department at (202)
874-4428.

Julie L. Williams

First Senior Deputy Comptroller and Chief Counsel

Attachment---[70 FR
70664](http://www.occ.treas.gov/fr/fedregister/70fr70664.pdf)

http://www.occ.treas.gov/fr/fedregister/70fr70664.pdf