Board of Governors of the Federal Reserve System 

Federal Deposit Insurance Corporation 

Federal Trade Commission 

National Credit Union Administration 

Ofice of the Comptroller of the Currency 

Ofice of Thrift Supervision 

November 24,2004 

Nessa Feddis 

American Bankers Association 

1120 Connecticut Avenue, NW 

Washington, DC 20036 

Subject. Fair and Accurate Credit Transactions Act of 2003 - Comuliance Dates 

Dear Ms. Feddis: 

This letter, signed by the chief and general counsels of the Federal Deposit Insurance 

Corporation, Federal Reserve Board (Board), National Credit Union Administration, 

Office of the Comptroller of the Currency, and the Office of Thrift Supervision, and the 

Acting Director of the Bureau of Consumer Protection of the Federal Trade Commission 

(FTC) (collectively, the Agencies), responds to your inquiry of the Agencies dated 

November 2,2004. In addition to the American Bankers Association, the inquiry was 

submitted on behalf of the America’s Community Bankers, Consumer Bankers 

Association, Credit Union National Association, Financial Services Roundtable, 

Independent Community Bankers of America, Mortgage Bankers Association, and the 

National Association of Federal Credit Unions (the Associations). Your inquiry seeks 

guidance on how the Agencies expect to apply ten provisions of the Fair and Accurate 

Credit Transactions Act of 2003 (FACT Act). 

Six of the provisions discussed in your letter must be implemented by regulations or 

guidance adopted by the Agencies. The provisions requiring rulemaking are: 

Red Flag Guidelines and Regulations (FACT Act $114, FCRA $615(e)); 

Disposal of Consumer Report Information (FACT Act $ 216, FCRA $ 628); 

Risk-Based PricingNotice (FACT Act 8 311, FCRA $ 615(h)), 

Accuracy and Integrity Guidelines and Regulations (FACT Act $3 12(a), FCRA 

Ability of Consumer to Dispute Information With Furnisher (FACT Act $ 312(c), 

FCRA 5 623(a)(8)); and 

Reconciling Addresses (FACT Act 3 15, FCRA $ 605(h)(2)). 

§ 623(4(1)); 

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By their terms, sections l14,216,312(a) and 312(c), and the provisions of section 315 

applicable to persons who have requested a consumer report require some or all of the 

Agencies to adopt implementing guidance or regulations. As these statutory provisions 

are written, the obligations of various persons flow fiom the guidelines and rules that are 

to be adopted by the designated agencies. Thus, compliance with any applicable 

guidance or rules cannot be determined until they are finally adopted by the Agencies. 

The effective date will be set forth in the guidance or rule. 

Section 31 1 of the FACT Act, which governs risk-based pricing notices, becomes 

effective on December 1,2004. The provisions of section 31 1 are, by their terms, 

enforceable only by the Federal agencies designated in section 621 of the Fair Credit 

Reporting Act. Joint rulemaking by the FTC and the Board will establish the parameters 

for compliance, including the requirements for consumer notice, and will state the date 

for compliance. 

The designated Agencies have in several cases begun work on guidance or rules (as 

appropriate) to implement the provisions discussed above and hope to seek comment on 

various proposals in the short term. With respect to the provisions of section 216 

regarding disposal of consumer information, the Agencies expect to issue a final rule by 

year-end that will include an effective date for compliance. 

There are a number of other provisions of the FACT Act listed in your letter that do not 

involve the publication of implementing rules. You have asked the Agencies to indicate 

their willingness to take into account the implementation difficulties associated with 

these provisions when considering possible agency enforcement actions. In particular, 

you have indicated that developing and implementing systems to comply with the 

following provisions of the FACT Act may be complex and difficult for many 

institutions: 

Fraud and Active Duty Alerts (FACT Act $112, FCRA $ 605A); 

Blocking of Information Resulting from Identity Theft (FACT Act $152, FCRA 

$ 605B); 

Prevention of Repollution of Consumer Reports (FACT Act $ 154(a)-@), FCRA 

Disclosure of Credit Scores (FACT Act $ 212(c), FCRA $ 609(g)). 

§§ 615(f),623(a)(6)); and 

The requirements of these provisions are effective on December 1,2004, and do not 

depend on agency rulemaking. As a result, the Agencies expect that covered persons will 

begin to comply with these provisions on that date. 

The Agencies appreciate the difficulties associated with developing compliance 

procedures, modifying systems, and training staff to implement new requirements. 

Consequently, the Agencies will take into account these difficulties together with all 

other relevant circumstances, including the good faith efforts made by each institution to 

comply with these provisions when considering whether to bring enforcement actions 

under the FACT Act. 
The Agencies note that this letter only addresses liability of regulated persons under the 

FACT Act and the FCRA listed above. Any obligations under other provisions of law 

would be beyond the scope of this letter. 

General Counsel 

ffice of Thrift Supervision 

Reserve System 

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William F. Kroener, III 

General Counsel Acting Chief Counsel 

Federal Deposit Insurance Corporation Office of the Comptroller of 

the Currency 

Lyttia B. Parnes Robert M. Fenner 

Acting Director 

Bureau of Consumer Protection 

Federal Trade Commission 

General Counsel 

National Credit Union 

Administration 

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