[Federal Register Volume 69, Number 245 (Wednesday, December 22, 2004)]
[Notices]
[Pages 76767-76768]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27981]


=======================================================================
-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION


Charges for Certain Disclosures

AGENCY: Federal Trade Commission.

ACTION: Notice regarding charges for certain disclosures.

-----------------------------------------------------------------------

SUMMARY: The Federal Trade Commission announces that the ceiling on 
allowable charges under section 612(f) of the Fair Credit Reporting Act 
(``FCRA'') will increase from $9.00 to $9.50 on January 1, 2005. Under 
1996 amendments to the FCRA, the Federal

[[Page 76768]]

Trade Commission is required to increase the $8.00 amount referred to 
in paragraph (1)(A)(i) of section 612(f) on January 1 of each year, 
based proportionally on changes in the Consumer Price Index (``CPI''), 
with fractional changes rounded to the nearest fifty cents. The CPI 
increased 17.80 percent between September 1997, the date the FCRA 
amendments took effect, and September 2004. This increase in the CPI 
and the requirement that any increase be rounded to the nearest fifty 
cents results in an increase in the current maximum allowable charge to 
$9.50 effective January 1, 2005.

EFFECTIVE DATE: January 1, 2005.

ADDRESSES: Federal Trade Commission, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Keith B. Anderson, Bureau of 
Economics, Federal Trade Commission, Washington, DC 20580, 202-326-
3428.

SUPPLEMENTARY INFORMATION: Section 612(f)(1)(A) of the Fair Credit 
Reporting Act, which became effective in 1997, provides that a consumer 
reporting agency may charge a consumer a reasonable amount for making a 
disclosure to the consumer pursuant to section 609 of the Act.\1\ The 
law states that, where a consumer reporting agency is permitted to 
impose a reasonable charge on a consumer for making a disclosure to the 
consumer pursuant to section 609, the charge shall not exceed $8 and 
shall be indicated to the consumer before making the disclosure. 
Section 612(f)(2) goes on to state that the Federal Trade Commission 
(``the Commission'') shall increase the $8.00 maximum amount on January 
1 of each year, based proportionally on changes in the Consumer Price 
Index, with fractional changes rounded to the nearest fifty cents.
---------------------------------------------------------------------------

    \1\ This provision, originally section 612(a), was added to the 
FCRA in September 1996 and became effective in September 1997. It 
was relabelled section 612(f) by section 211(a) of the Fair and 
Accurate Credit Transactions Act of 2003 (``FACT Act''), Public Law 
108-159, which was signed into law on December 4, 2003.
---------------------------------------------------------------------------

    Section 211(a) of the Fair and Accurate Credit Transactions Act of 
2003 (``FACT Act'') adds a new section 612(a) to the FCRA that gives 
consumers the right to request free annual disclosures once every 12 
months. The maximum allowable charge established by this notice does 
not apply to requests made under that new provision. The charge will, 
however, apply where a consumer orders a file disclosure directly from 
one of the three nationwide consumer reporting agencies because the 
consumer is not yet eligible to receive a free annual disclosure, or 
has already received a free annual disclosure and does not otherwise 
qualify for an additional free disclosure.
    The Commission considers the $8 amount referred to in paragraph 
(1)(A)(i) of section 612(f) to be the baseline for the effective 
ceiling on reasonable charges dating from the effective date of the 
amended FCRA, i.e., September 30, 1997. Each year the Commission 
calculates the proportional increase in the Consumer Price Index (using 
the most general CPI, which is for all urban consumers, all items) from 
September 1997 to September of the current year. The Commission then 
determines what modification, if any, from the original base of $8 
should be made effective on January 1 of the subsequent year, given the 
requirement that fractional changes be rounded to the nearest fifty 
cents.
    Between September 1997 and September 2004, the Consumer Price Index 
for all urban consumers and all items increased by 17.80 percent--from 
an index value of 161.2 in September 1997 to a value of 189.9 in 
September 2001. An increase of 17.80 percent in the $8.00 base figure 
would lead to a new figure of $9.42. However, because the statute 
directs that the resulting figure be rounded to the nearest $0.50, the 
allowable charge should be $9.50.
    The Commission therefore determines that the allowable charge for 
the year 2005 will be $9.50.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 04-27981 Filed 12-21-04; 8:45 am]
BILLING CODE 6750-01-P