This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

64168

Vol. 65, No. 208

Thursday, October 26, 2000

1The FCRA creates substantial obligations for

‘‘consumer reporting agencies.’’ FCRA, section

603(f); see, e.g., sections 607, 611. These obligations

include furnishing consumer reports only for

permissible purposes, maintaining high standards

for ensuring the accuracy of information in

consumer reports, resolving customer disputes, and

other matters.

OFFICE OF PERSONNEL

MANAGEMENT

5 CFR Part 930

RIN 3206–AI08

Appointment, Pay, and Removal of

Administrative Law Judges

AGENCY: Office of Personnel

Management.

ACTION: Notice of withdrawal of

proposed rulemaking.

SUMMARY: The Office of Personnel

Management is withdrawing its

proposal to revise the regulations on the

appointment, pay, and removal of

administrative law judges (published

February 23, 1998, 63 FR 8874). The

proposal contained several major

revisions concerning the administrative

law judge program. Because we plan to

make additional changes to these

regulations, we will publish a revised

proposal and invite a new public

comment.

FOR FURTHER INFORMATION CONTACT:

Juanita Love on (202) 606–0810.

Office of Personnel Management

Janice R. Lachance,

Director.

[FR Doc. 00–27468 Filed 10–25–00; 8:45 am]

BILLING CODE 6325–01–P

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Part 706

Credit Practices

AGENCY: National Credit Union

Administration.

ACTION: Notice of proposed rulemaking.

SUMMARY: The National Credit Union

Administration (NCUA) is publishing

for comment proposed regulations

implementing provisions of the Fair

Credit Reporting Act (FCRA) that permit

federal credit unions (FCUs) to

communicate information to their

affiliates (affiliate information sharing)

without incurring the obligations of

consumer reporting agencies. The

proposed regulations explain how to

comply with the affiliate information

sharing provisions, addressing such

matters as the content and delivery of

the notice to consumers. The proposed

regulations also implement certain

related provisions. NCUA participated

as part of an interagency group

composed of representatives from the

Board of Governors of the Federal

Reserve, the Federal Deposit Insurance

Corporation, the Office of the

Comptroller of the Currency and the

Office of Thrift Supervision

(collectively, the Agencies). NCUA’s

proposed rule is therefore comparable to

the proposed rules filed jointly by the

Agencies, but takes into account the

unique circumstances of federal credit

unions and their members. NCUA has

attempted to conform these proposed

regulations to the final regulations

implementing the privacy provisions of

the Gramm-Leach-Bliley Act.

DATES: Written comments must be

received by the NCUA on or before

December 26, 2000.

ADDRESSES: Direct comments to Becky

Baker, Secretary of the Board. Mail or

hand-deliver comments to: National

Credit Union Administration, 1775

Duke Street, Alexandria, Virginia

22314–3428. You may also fax

comments to (703) 518–6319. Please

send comments by one method only.

FOR FURTHER INFORMATION CONTACT:

Chrisanthy J. Loizos, Staff Attorney,

Division of Operations, Office of

General Counsel, at the above address or

telephone: (703) 518–6540.

SUPPLEMENTARY INFORMATION:

I. Background

The FCRA

The FCRA, enacted in 1970, sets

standards for the collection,

communication, and use of information

bearing on a consumer’s credit

worthiness, credit standing, credit

capacity, character, general reputation,

personal characteristics, or mode of

living. 15 U.S.C. 1681–1681u. In 1996,

the Consumer Credit Reporting Reform

Act amended the FCRA extensively

(1996 Amendments). Pub. L. 104–208,

110 Stat. 3009.

For many years, to avoid the

obligations of consumer reporting

agencies imposed by the FCRA, many

financial institutions avoided making

any communications to affiliates of

consumer information that could

constitute consumer reports.1 The 1996

Amendments, however, excluded

specified types of information sharing

with affiliates from the definition of

‘‘consumer report’’ assuring financial

institutions that making these

communications would not expose

them to the obligations of consumer

reporting agencies. In particular, the

1996 Amendments excluded from the

definition of ‘‘consumer report’’ the

sharing of ‘‘other information’’ among

affiliates, so long as the consumer,

having been given notice and an

opportunity to opt out, did not opt out.

‘‘Other information’’ refers to

information that is covered by the FCRA

and that is not a report containing

information solely as to transactions or

experiences between the consumer and

the person making the report.

The 1996 Amendments prohibited the

NCUA and the Agencies from issuing

implementing regulations. 15 U.S.C.

1681s(a)(4) (repealed). The GrammLeach-Bliley Act (GLBA) repealed this

prohibition and directed the Board to

prescribe regulations as necessary to

carry out the purposes of FCRA with

respect to FCUs. Pub. L. 106–102 § 506,

15 U.S.C. 1681s(e)(2).

NCUA’s proposed rule and a large

portion of the preamble mirror the

Agencies’ joint notice of proposed

rulemaking, although credit unions

differ from other financial institutions

in several ways. FCUs are not-for-profit

cooperative financial institutions,

formed to permit those in the field of

membership specified in the credit

union’s charter to save, borrow, and

obtain related financial services.

Member ownership and control make

credit unions unique from other

financial institutions. FCU investment

in affiliates is limited to credit union

service organizations (CUSOs), which

are organizations that primarily serve

credit unions or their members and

whose business is related to the daily

Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules 64169

and routine operations of credit unions.

12 U.S.C. 1757(5)(D), 1757(7)(I).

Coordination with Privacy Regulations

The GLBA sets standards for financial

institutions’ disclosure of nonpublic

personal information to nonaffiliated

third parties (privacy provisions; Pub. L.

106–102, 15 U.S.C. 6802; see also 15

U.S.C. 6803.) NCUA published final

regulations implementing these privacy

provisions on May 18, 2000 (65 FR

31721, May 18, 2000).

The privacy regulations do not

‘‘modify, limit, or supersede the

operation of the Fair Credit Reporting

Act.’’ 15 U.S.C. 6806. Thus, both the

privacy regulations and the FCRA may

apply to an FCU’s disclosure of

consumer information. Moreover, if an

FCU provides an opt out notice under

the FCRA, that notice must be included

in certain notices mandated by the

privacy regulations, including annual

notices to customers. 15 U.S.C. 6803.

Therefore, NCUA anticipates that FCUs

will design their information-sharing

policies and practices, taking into

account both the privacy regulations

and the regulations implementing the

FCRA. To ease compliance and promote

consistency, NCUA is conforming the

two regulations where appropriate.

Unlike the privacy regulations, these

regulations do not distinguish between

members and nonmembers, or

customers and consumers. The FCRA is

triggered when an individual’s credit

information is assembled or evaluated to

establish the consumer’s eligibility for:

credit or insurance used for consumer

purposes; employment purposes; or any

other purpose authorized under section

604 of the FCRA. 15 U.S.C. 1681 et seq.

FCUs must comply with these

regulations whenever it furnishes

consumer credit information to third

parties. FCUs are reminded that the

FCRA remains in effect prior to the

mandatory compliance date; to avoid

becoming consumer reporting agencies,

FCUs must refrain at all times from

sharing opt out information with their

affiliates without providing consumers

the opportunity to opt out.

II. Section-by-Section Analysis

Section 706.6—What does this subpart

do?

Proposed paragraph 706.6(a) briefly

describes the purpose of the regulations.

Proposed paragraph 706.6(b) briefly

describes the scope of the regulations,

including the information and

institutions subject to them.

Proposed paragraph 706.6(c) provides

that nothing in this subpart modifies,

limits, or supersedes the standards

governing the privacy of individually

identifiable health information

promulgated by the Secretary of Health

and Human Services pursuant to

sections 262 and 264 of the Health

Insurance Portability and

Accountability Act (HIPAA) of 1996 (42

U.S.C. 1320d–1320d–8). Certain FCUs

that possess medical information about

consumers may be covered by these

regulations, the GLBA privacy

regulations, and rules promulgated by

the Department of Health and Human

Services (HHS) under the authority of

sections 262 and 264 of HIPAA once

those regulations are finalized. Based on

the proposed HIPAA rules, it appears

likely that there will be areas of overlap

between the HIPAA and the FCRA

affiliate information-sharing rules. After

HHS publishes its final rules, the

Agencies and NCUA will consult with

HHS to avoid the imposition of

duplicative or inconsistent

requirements.

Section 706.7—What is the significance

of the examples used in this subpart?

Proposed § 706.7 clarifies that the

examples used in the subpart and in the

sample notice are not exclusive means

of compliance; rather, they are intended

to provide guidance on how to comply

in specific situations. NCUA solicits

comment on whether to include

additional or different examples, and,

more fundamentally, on whether the use

of examples within the regulations is

appropriate and useful. Elevating the

fact patterns to safe harbors in the rule

may generate certain problems over

time. For example, changes in

technology or practice may ultimately

impact the fact patterns contained in the

examples and require changes in the

regulations. NCUA solicits comments on

whether alternative methods exist that

offer illustrative guidance of the

concepts portrayed by the examples.

Section 706.8—What definitions apply

to this subpart?

Discussed below are a few key

definitions, including: ‘‘affiliate’’ (as

well as the related terms ‘‘company’’

and ‘‘control’’); ‘‘clear and

conspicuous’’; ‘‘opt out’’; ‘‘opt out

information’’; and ‘‘consumer report.’’

The proposal tracks the statutory

language referring to ‘‘transaction or

experience information,’’ but does not

define that term.

Affiliate

Several FCRA provisions apply to

information sharing with persons

‘‘related by common ownership or

affiliated by corporate control,’’ ‘‘related

by common ownership or affiliated by

common corporate control,’’ or

‘‘affiliated by common ownership or

common corporate control.’’ E.g., FCRA,

sections 603(d)(2), 615(b)(2), and

624(b)(2). Proposed paragraph (a)

defines ‘‘affiliate’’ to refer to all these

relationships between and among

companies, and clarifies that ‘‘related or

affiliated by common ownership or

affiliated by corporate control or

common corporate control’’ means

controlling, controlled by, or under

common control with another company.

This paragraph also reflects that FCU

investment in affiliates is limited to

CUSOs.

Consistent with the definitions in the

privacy regulations, the proposal uses a

definition of ‘‘control’’ that applies

exclusively to the control of a

‘‘company,’’ and defines ‘‘company’’ to

include any corporation, limited

liability company, business trust,

general or limited partnership,

association or similar organization. See

proposed paragraph (d) (‘‘company’’)

and (h) (‘‘control’’). The proposal also

maintains the example of ‘‘control’’

used in the privacy regulations. NCUA

presumes an FCU has a controlling

influence over the management or

policies of a CUSO if the CUSO is 67%

owned by federal or state-chartered

credit unions. NCUA incorporates the

discussion of the definition of ‘‘control’’

within the privacy regulations into this

preamble. See 65 FR 31723–24 (May 18,

2000).

Clear and Conspicuous

Proposed paragraph (b) defines ‘‘clear

and conspicuous’’ to mean that a notice

must be reasonably understandable and

designed to call attention to the nature

and significance of the information it

contains. The proposed regulations do

not mandate the use of any particular

technique for making a notice clear and

conspicuous; instead, they give FCUs

flexibility in determining how to

comply. An FCU may make its notice

reasonably understandable, for example,

by using short explanatory sentences or

bullet lists and avoiding legal or highly

technical business terminology

whenever possible. An FCU may design

its notice to call attention to the nature

and significance of the information in

the notice by, for example, using a

plain-language heading and a typeface

and size that are easy to read.

Proposed paragraph (b) is consistent

with the ‘‘clear and conspicuous’’

standard in the privacy regulations. It

offers a more detailed exposition of the

standard (particularly with respect to

what makes a notice ‘‘conspicuous’’)

than some other regulations, such as the

Board’s Regulation Z. However, laws

64170 Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules

2Prior to the 1996 amendments to FCRA,

affiliated entities could not pool their transaction or

experience information in a common database

without being considered a consumer reporting

agency. Instead, each affiliate could disclose its

own transaction or experience information to

another affiliate directly only in the same manner

as an entity can disclose information to a

nonaffiliated third party. While transaction or

experience information has been excluded from the

definition of ‘‘consumer report’’ since the FCRA’s

initial passage, the 1996 amendments facilitated the

disclosure of such information among affiliates.

other than FCRA—for example, the

Truth in Lending Act—that require clear

and conspicuous disclosures, are

beyond the scope of this rulemaking.

Accordingly, the standard proposed

here does not affect disclosures required

by those laws.

NCUA requests comment on whether

FCUs have any particular concerns

about compliance with FCRA’s clear

and conspicuous standard when FCRA

opt out notices are included with the

GLBA privacy provision notices.

Consumer Report

Proposed paragraph (f) parallels the

definition in section 603(d) of the

FCRA. Paragraph (f)(2)(ii) excludes from

the definition of ‘‘consumer report’’

communication among affiliates of a

report containing information solely as

to transactions or experiences between

the consumer and the person making

the report.2

Paragraph (f)(2)(iii) excludes any

communication of ‘‘opt out

information’’ if the conditions set out in

§§ 706.9 through 706.14 are satisfied.

The FCRA, as explained above, uses the

term ‘‘other information’’ to refer to

information that it covers but that is not

transaction or experience information.

This proposal refers to ‘‘other

information’’ using the more descriptive

term ‘‘opt out information.’’ See

proposed paragraph (k).

Opt Out

Proposed paragraph (j) defines this

term to mean a direction by a consumer

that an FCU not communicate opt out

information about the consumer to one

or more of the FCU’s affiliates.

Opt Out Information

As described above, the 1996

Amendments to FCRA excluded from

the definition of ‘‘consumer report’’ the

sharing of ‘‘other information’’ among

affiliates, so long as the consumer,

having been given notice and an

opportunity to opt out, did not opt out.

‘‘Other information’’ refers to

information that is covered by the FCRA

and that is not a report containing

information solely as to transactions or

experiences between the consumer and

the person making the report. The

proposed regulation uses the term ‘‘opt

out information’’ to describe this

category of information.

Proposed paragraph (k) defines opt

out information as information that (i)

bears on a consumer’s credit worthiness,

credit standing, credit capacity,

character, general reputation, personal

characteristics, or mode of living, (ii) is

used or expected to be used or collected

for one or more of the permissible

purposes listed in FCRA (e.g. credit

transaction, employment purposes), and

(iii) is not transaction or experience

information. Section 706.10(d) gives

examples of categories of opt out

information.

Section 706.9—How may a credit union

communicate opt out information to its

affiliates without the communication

being a consumer report?

Proposed § 706.9 describes the

conditions that an FCU must meet to

ensure that its communications of opt

out information to its affiliates do not

constitute consumer reports, including

the requirement that the FCU provide an

opt out notice. Section 603(d)(2)(A)(iii)

of the FCRA excludes from the

definition of ‘‘consumer report’’ the

sharing of opt out information among

affiliates if:

[I]t is clearly and conspicuously disclosed

to the consumer that the information may be

communicated among such persons and the

consumer is given the opportunity, before the

time that the information is initially

communicated, to direct that such

information not be communicated among

such persons.* * *

Proposed § 706.9 accordingly

provides that opt out information may

be communicated among affiliates

without the communication being a

consumer report if: (i) The FCU has

provided an opt out notice; (ii) the FCU

has given the consumer a reasonable

opportunity and means, before the time

that it communicates the information, to

opt out; and (iii) the consumer has not

opted out.

Mergers & Acquisitions

In a merger or acquisition situation,

the need to provide new opt out notices

to the consumers of the entity that

ceases to exist will depend on whether

the notices previously given to those

consumers accurately reflect the

policies and practices of the surviving

entity. If they do, the surviving entity

will not be required under the rule to

provide new notices.

Section 706.10—What must be in an opt

out notice?

Proposed paragraph (a) provides that

an opt out notice must be clear and

conspicuous, and must accurately

explain: (i) The categories of opt out

information about the consumer that the

FCU communicates; (ii) the categories of

affiliates to which the FCU

communicates the information; (iii) the

consumer’s ability to opt out; and (iv)

the means to do so. NCUA invites

comment on whether FCUs should also

have to disclose in their FCRA notices

how long a consumer has to respond to

the opt out notice before the FCU may

begin disclosing information about that

consumer to its affiliates, as well as the

fact that a consumer can opt out at any

time. These disclosures are not required

in the privacy regulations. NCUA seeks

comment on whether the benefits of the

additional disclosures would outweigh

the burdens, and, if so, whether the

regulation should require the

disclosures to state that an FCU will

wait 30 days in every instance before

sharing consumer information with

affiliates (see proposed § 706.11, below,

for additional discussion on reasonable

opportunity to opt out).

Proposed paragraph (b) clarifies that

an FCU’s notice may describe not only

the communications of opt out

information that the FCU currently

plans to make to its affiliates, but also

the communications that it reserves the

right to make in the future.

Proposed paragraph (c) explains that

an FCU may provide the consumer with

the option of an opt out that covers only

part of the information or certain

affiliates. This would enable an FCU to

give consumers a menu of opt out

choices if it desires to do so.

Proposed paragraph (d) illustrates

how an FCU may categorize the opt out

information that it communicates to

affiliates. Paragraph (d)(2) gives

examples of opt out information, such

as information from a consumer’s

application, information from a

consumer report, information obtained

by verifying representations made by a

consumer, and information provided by

another person regarding that person’s

relationship with the consumer. The

first two categories reflect the legislative

history of the 1996 Amendments, which

states in part that the opt out provision

‘‘will clarify that affiliates within a

Holding Company structure can share

any application information * * * and

consumer reports, consistent with the

FCRA.’’ S. Rep. No. 185, 104th Cong.,

1st Sess. 18–19 (1995). The other two

categories represent information that

NCUA believes does not constitute

Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules 64171

3Congress has recently enacted the E-Sign Act,

Pub. L. 106–229, which addresses the use of

electronic records and signatures for interstate and

foreign commerce. This legislation contains general

rules governing the use of electronic records for

providing required information to consumers (such

as disclosures and acknowledgements required by

the GLBA). The legal requirement that consumer

disclosures be in writing may be satisfied by an

electronic record if the consumer affirmatively

consents and certain other requirements of the ESign Act are met.

transaction or experience information

when communicated by the FCU that

has received it. Paragraph (d)(3) gives a

non-exclusive list of examples of

specific items of opt out information

within each category, including a

consumer’s income, credit score or

credit history, open lines of credit,

employment history and medical

history.

Medical data are especially sensitive

for many consumers; if such data are

among the opt out information that an

FCU communicates to its affiliates, the

FCU satisfies the requirement to

categorize that information if it includes

examples of medical data that it intends

to share. NCUA notes that the items

listed in paragraph (d)(3) as examples of

information that would be included

within the categories of opt out

information are illustrative only. Those

items would not be considered opt out

information in cases where the

information is obtained from a source

other than those listed in paragraph

(d)(2). Comment is requested as to the

appropriateness of these examples of

categories and items of opt out

information, and whether additional or

different examples should be used.

The descriptions of the categories of

information set out in proposed

paragraph (d)(2) differ somewhat from

those in the privacy regulations. 12 CFR

716.6. NCUA solicits comment on the

extent to which the categories in (d)(2)

can be treated as consistent with similar

categories in the privacy regulations

(such as disclosures of information from

consumer reporting agencies) in order to

reduce compliance burden and

consumer confusion.

Paragraph (e) explains how an FCU

can satisfy the requirement that it

categorize the affiliates to which it

communicates opt out information.

Paragraph (f) cross-references the

sample notice in Appendix A, which

presents a further illustration of the

content of an opt out notice.

Section 706.11—How may a credit

union provide a reasonable opportunity

to opt out?

Proposed paragraph (a) sets forth that

an FCU will provide a reasonable

opportunity to opt out by providing a

reasonable period of time for the

consumer to opt out from the time the

notice is delivered. Proposed paragraph

(b) sets out examples of what is a

reasonable period of time when notices

are provided in person, by mail, or by

electronic means. Comment is requested

on whether there are other situations

that would suggest a different

reasonable period of time that NCUA

should note by example. Proposed

paragraph (c) explains that a consumer

may opt out at any time.

Section 706.12—What are reasonable

means of opting out?

Proposed paragraph (a) sets forth the

general rule that an FCU provides a

reasonable means of opting out if it

provides a reasonably convenient

method to the consumer to opt out.

Examples of reasonable means of opting

out and unreasonable means are set out

in proposed paragraphs (b) and (c),

respectively. Proposed paragraph (d)

permits an FCU to require each

consumer to opt out through a specific

means, as long as that means is

reasonable for that consumer.

Section 706.13—How must a credit

union deliver an opt out notice?

Proposed paragraph (a) provides that

an FCU must deliver an opt out notice

so that each consumer can reasonably be

expected to receive actual notice. As

indicated by the examples provided in

proposed paragraph (b), this is a lesser

standard than actual notice. For

instance, if an FCU mails a printed copy

of its notice to the last known mailing

address of an existing consumer, the

FCU has met its obligation even if the

consumer has changed addresses and

never receives the notice.

An FCU may give notice in writing or,

if the consumer agrees, electronically.

For example, the FCU may e-mail its

notice to a consumer that conducts

electronic transactions and has agreed to

receive electronic notice. NCUA invites

comment on whether and how the

proposed rules governing

communications between an FCU and a

consumer via an electronic medium

should be modified in light of the

Electronic Signatures in Global and

National Commerce (the E-Sign Act).3

Proposed paragraph (c) explains that

oral notice alone does not comply with

the notice requirement; however, oral

notice may be provided in conjunction

with appropriate written or electronic

notice.

Proposed paragraph (d) explains that

an FCU must provide the notice so that

the consumer can retain it or obtain it

at a later time, and gives examples of

retention or accessibility.

Proposed paragraph (e) permits an

FCU to provide a joint opt out notice

with one or more of its affiliates that are

identified in the notice, as long as the

notice is accurate with respect to each

entity jointly issuing the notice.

Proposed paragraph (f)(1) sets out

rules that apply, notwithstanding any

other provision of the regulations, when

two or more consumers jointly obtain a

product or service from an FCU

(referred to in the proposed regulations

as joint consumers), other than a loan,

such as a joint checking account. For

example, an FCU may provide a single

opt out notice to joint accountholders.

The notice must indicate whether the

FCU will consider an opt out by a joint

accountholder as an opt out by all of the

associated accountholders, or whether

each accountholder may opt out

separately. The FCU may not require all

accountholders to opt out before

honoring an opt out direction by one of

the joint accountholders. With respect

to loans, paragraph (f)(2) requires that

an FCU provide an opt out notice to

each borrower or loan guarantor if the

FCU intends to communicate opt out

information about the consumer to any

of the FCU’s affiliates.

Section 706.14—When is revised opt out

notice required?

Proposed § 706.14 addresses the

situation in which an FCU has provided

a consumer with one or more opt out

notices but later decides to

communicate opt out information to its

affiliates other than described in those

notices. It explains that an FCU must

send a revised opt out notice that

complies with § 706.9, including

providing a reasonable means and

opportunity to opt out, and

communicating the information only if

the consumer has not opted out.

Section 706.15—When must a credit

union comply with an opt out?

Proposed § 706.15 explains that if an

FCU provides a consumer with an opt

out notice, and the consumer opts out,

the FCU must comply as soon as

reasonably practicable after receiving

the consumer’s direction. Comment is

solicited on whether NCUA should

establish a fixed number of days—for

example, 30 days—that would be

deemed a ‘‘reasonably practicable’’

period of time for complying with a

consumer’s opt out direction.

Section 706.16—How long does an opt

out last?

Proposed § 706.16 provides that an

opt out continues to apply to the

information and affiliates described in

the applicable opt out notice until

64172 Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules

revoked by the consumer in writing, or

if the consumer agrees, electronically, as

long as the consumer continues to have

a relationship with the FCU. If the

consumer’s relationship with the FCU

terminates, the opt out will continue to

apply to this information. However, a

new notice and opportunity to opt out

must be provided if the consumer

establishes a new relationship with the

FCU.

Section 706.17—May a credit union

condition the availability or terms of

credit on whether a consumer opts out?

Proposed paragraph (a) reminds FCUs

that they may not ‘‘discriminate against

an applicant’’ for credit because the

applicant opts out. The source of this

prohibition is the Equal Credit

Opportunity Act (ECOA; 15 U.S.C. 1691

et seq.), which bars discrimination on a

prohibited basis in any aspect of a credit

transaction; one prohibited basis is

exercising a right under the Consumer

Credit Protection Act, which includes

the FCRA.

Proposed paragraph (b) provides

examples of prohibited discrimination

against an applicant. Paragraph (c) notes

that the terms ‘‘applicant’’ and

‘‘discriminate against’’ have the

meaning ascribed to these terms in 12

CFR part 202.

Appendix A

Appendix A, which is part of these

regulations, contains a sample notice,

part or all of which may be used to

facilitate compliance with the notice

requirements. Although use of the

sample notice is not required, FCUs

using it properly to provide notices will

be deemed to be in compliance.

NCUA solicits comment on all aspects

of the proposed regulations, including

but not limited to those highlighted

above.

III. Regulatory Analysis

Paperwork Reduction Act

This proposed regulation contains

disclosure requirements for FCUs and

their affiliates. An FCU that (a) has

affiliates, (b) does not wish to be

considered a consumer reporting

agency, and (c) wishes to share

consumer information (other than

transaction and experience information)

with its affiliates, must prepare and

provide a notice to all its consumers

advising them of their opportunity to

opt out of information sharing with its

affiliates. 12 CFR 706.9. If an FCU

wishes to share information in a way

that is inconsistent with notices

previously given to consumers, the FCU

must provide consumers with revised

notices. 12 CFR 706.14. The collection

of information requirements contained

in this notice of proposed rulemaking

will be submitted to the Office of

Management and Budget for review in

accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C. 3507).

In estimating burden, NCUA assumed

that if an FCU provides an opt out

notice under the FCRA, that notice must

be included in certain notices mandated

by the GLBA privacy provisions, and

will not be sent out separately. The

analysis assumes that FCUs will provide

single, combined notices covering all of

the various relationships a consumer

may have with an FCU, rather than

separate opt out notices based on

product lines such as loans and share

accounts. NCUA seeks comment as to

whether FCUs would likely send

separate or combined notices.

This proposed regulation contains

consumer reporting requirements. In

order for consumers to invoke their right

to opt out, they must respond to the

credit union’s opt out notice. 12 CFR

706.15. NCUA requests public comment

on all aspects of the collections of

information contained in this proposed

rule, including consumer responses to

the opt out notice and consumer

changes to their opt out status with a

credit union. 12 CFR 706.11(c). In light

of the uncertainty regarding what FCUs

will do to comply with the opt out

requirements and how consumers will

react, NCUA estimates a nominal

burden stemming from consumer

responses of one hour per FCU, and will

revisit this estimate in light of the

comments NCUA receives.

The Board estimates that it will take

an average of ten hours total for an FCU

to develop and process opt-out notices

that comply with these regulations. The

Board also estimates that nine hundred

sixty-two FCUs have investments in

CUSOs. The cumulative total annual

paperwork burden is estimated to be

approximately nine thousand six

hundred twenty hours.

NCUA will submit the collection of

information requirements contained in

the regulation to the OMB in accordance

with the Paperwork Reduction Act of

1995. 44 U.S.C. 3507. The NCUA will

use any comments received to develop

its new burden estimates. Comments on

the collections of information should be

sent to Office of Management and

Budget, Reports Management Branch,

New Executive Office Building, Room

10202, Washington, DC 20503;

Attention: Alex T. Hunt, Desk Officer

for NCUA. Please send NCUA a copy of

any comments you submit to OMB.

Regulatory Flexibility Act

Pursuant to section 605(b) of the

Regulatory Flexibility Act, NCUA

certifies that this proposed rulemaking

will not have a significant economic

impact on a substantial number of small

entities. FCUs have had to notify their

consumers of the right to opt out of

affiliate sharing of certain information

since 1997. This rulemaking provides

guidance to FCUs concerning how they

may comply with the statutory

requirements, but requires no new types

of disclosure or opt out system. While

existing forms may need to be modified,

these modifications are unlikely to

result in a significant economic impact

on a substantial number of small

entities.

In addition, some of the requirements

in the proposed rule have been designed

to correspond to the requirements of the

privacy regulations. For example, under

both regulations, FCUs, in certain

circumstances, must deliver notices to

consumers and to provide consumers an

opportunity to opt out of certain

information disclosures. This proposed

rule would allow FCUs to combine into

one notice the notice they must deliver

under FCRA and the notice that they

must deliver under the privacy

regulations. Also, FCUs may combine

their consumers’ opt out responses into

one opt out response. By combining the

notices they deliver and the opt out

responses they process, FCUs will not

need to produce additional opt out

responses under this rule. Because the

proposed rule is designed to minimize

FCRA’s burden on FCUs, and because

the FCRA requirements have been

effective since 1997, NCUA believes that

this proposed rule will not have a

significant economic impact on a

substantial number of small entities. For

these reasons, a regulatory flexibility

analysis is not required.

Executive Order 13132

Executive Order 13132 encourages

independent regulatory agencies to

consider the impact of their regulatory

actions on state and local interests. In

adherence to fundamental federalism

principles, NCUA, an independent

regulatory agency as defined in 44

U.S.C. 3502(5), voluntarily complies

with the executive order. This proposed

rule, if adopted, applies only to

federally-chartered credit unions and

will not have substantial direct effects

on the states, on the relationship

between the national government and

the states, or on the distribution of

power and responsibilities among the

various levels of government. NCUA has

determined that the proposed rule does

Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules 64173

not constitute a policy that has

federalism implications for purposes of

the executive order.

The Treasury and General Government

Appropriations Act, 1999—Assessment

of Federal Regulations and Policies on

Families

The NCUA has determined that this

proposed rule will not affect family

well-being within the meaning of

section 654 of the Treasury and General

Government Appropriations Act, 1999,

Pub. L. 105–277, 112 Stat. 2681 (1998).

Agency Regulatory Goal

NCUA’s goal is to promulgate clear

and understandable regulations that

impose minimal regulatory burden. We

request your comments on whether the

proposed amendment is understandable

and minimally intrusive if implemented

as proposed.

List of Subjects in 12 CFR Part 706

Credit, Credit unions, Trade practices.

By the National Credit Union

Administration Board on October 19, 2000.

Becky Baker,

Secretary of the Board.

For the reasons set forth in the

preamble, it is proposed that 12 CFR

chapter VII be amended as follows:

PART 706—CREDIT PRACTICES AND

FAIR CREDIT REPORTING

1. The authority citation for part 706

is revised to read as follows:

Authority: 15 U.S.C. 57a(f), 1681s.

2. A heading for subpart A is added

preceding § 706.1 to read as follows:

Subpart A—Credit Practices

3. Subpart B is added to part 706 to

read as follows:

Subpart B—Fair Credit Reporting

706.6 What does this subpart do?

706.7 What is the significance of the

examples used in this subpart?

706.8 What definitions apply to this part?

706.9 How may a credit union

communicate opt out information to its

affiliates without the communication

being a consumer report?

706.10 What must be in an opt out notice?

706.11 How may a credit union provide a

reasonable opportunity to opt out?

706.12 What are reasonable means of opting

out?

706.13 How must a credit union deliver an

opt out notice?

706.14 When is a revised opt out notice

required?

706.15 When must a credit union comply

with an opt out?

706.16 How long does an opt out last?

706.17 May a credit union condition the

availability of terms of credit on whether

a consumer opts out?

Appendix A to Subpart B—Sample

Notice

Subpart B—Fair Credit Reporting

§ 706.6 What does this subpart do?

(a) Purpose. This subpart governs the

collection, communication, and use by

federal credit unions of certain

information bearing on a consumer’s

credit worthiness, credit standing, credit

capacity, character, general reputation,

personal characteristics, or mode of

living.

(b) Scope. This subpart applies to

information that is used or expected to

be used or collected in whole or in part

for the purpose of serving as a factor in

establishing a consumer’s eligibility for

credit, insurance, employment, or any

other purpose authorized under section

604 of the Fair Credit Reporting Act (15

U.S.C. 1681b). This subpart applies to

federal credit unions.

(c) Relation to other laws. Nothing in

this subpart modifies, limits, or

supercedes the standards governing the

privacy of individually identifiable

health information promulgated by the

Secretary of Health and Human Services

under the authority of sections 262 and

264 of the Health Insurance Portability

and Accountability Act of 1996 (42

U.S.C. 1320d–1320d–8).

§ 706.7 What is the significance of the

examples used in this subpart?

The examples in this subpart and the

sample notice in appendix A to subpart

B are not exclusive. Compliance with an

example or the use of the sample notice,

to the extent applicable, constitutes

compliance with this subpart.

§ 706.8 What definitions apply to this

subpart?

As used in these regulations, unless

the context requires otherwise—

(a) Affiliate—(1) In general. The term

means any company that is related or

affiliated by common ownership, or

affiliated by corporate control or

common corporate control, with another

company.

(2) Related or affiliated by common

ownership or affiliated by corporate

control or common corporate control.

This means controlling, controlled by,

or under common control with, another

company.

(3) Example. An affiliate of a federal

credit union is a credit union service

organization (CUSO), as provided in 12

CFR part 712, that is controlled by the

federal credit union.

(b) Clear and conspicuous—(1) In

general. The term means that a notice is

reasonably understandable and

designed to call attention to the nature

and significance of the information

contained in the notice.

(2) Examples—(i) Reasonably

understandable. You may make your

notice reasonably understandable if you:

(A) Present the information in the

notice in clear and concise sentences,

paragraphs, and sections;

(B) Use short explanatory sentences or

bullet lists whenever possible;

(C) Use definite, concrete, everyday

words and active voice whenever

possible;

(D) Avoid multiple negatives;

(E) Avoid legal and highly technical

business terminology whenever

possible; and

(F) Avoid explanations that are

imprecise and readily subject to

different interpretations.

(ii) Designed to call attention. You

design your notice to call attention to

the nature and significance of the

information it contains if you:

(A) Use a plain-language heading to

call attention to the notice;

(B) Use a typeface and type size that

are easy to read;

(C) Provide wide margins and ample

line spacing;

(D) Use boldface or italics for key

words; and (E) In a form that combines

your notice with other information, use

distinctive type sizes, styles, and

graphic devices, such as shading and

sidebars.

(iii) Notice on a web page. If you

provide a notice on a web page, you

design your notice to call attention to

the nature and significance of the

information it contains if:

(A) You place either the notice, or a

link that connects directly to the notice

and that is labeled appropriately to

convey the importance, nature, and

relevance of the notice, on a page that

consumers access often, such as a page

on which transactions are conducted;

(B) You use text or visual cues to

encourage scrolling down the page if

necessary to view the entire notice; and

(C) You ensure that other elements on

the web page (such as text, graphics,

links, or sound) do not detract attention

from the notice.

(c) Communciation includes written,

oral, and electronic communication;

provided that the term includes

electronic communication to a

consumer only if the consumer agrees to

receive the communication

electronically.

(d) Company means any corporation,

limited liability company, business

trust, general or limited partnership,

association, or similar organization.

(e) Consumer means an individual.

(f) Consumer report—(1) In general.

The term means any written, oral, or

64174 Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules

other communication of any

information by a consumer reporting

agency bearing on a consumer’s credit

worthiness, credit standing, credit

capacity, character, general reputation,

personal characteristics, or mode of

living which is used or expected to be

used or collected in whole or in part for

the purpose of serving as a factor in

establishing the consumer’s eligibility

for:

(i) Credit or insurance to be used

primarily for personal, family, or

household purposes;

(ii) Employment purposes; or (iii) Any

other purpose authorized under section

604 of the Fair Credit Reporting Act (15

U.S.C. 1681b).

(2) Exclusions. The term does not

include:

(i) Any report containing information

solely as to transactions or experiences

between the consumer and the person

making the report;

(ii) Any communication of that

information among affiliates;

(iii) Any communication among

affiliates of opt out information if the

conditions in §§ 706.9 through 706.14

are satisfied;

(iv) Any authorization or approval of

a specific extension of credit directly or

indirectly by the issuer of a credit card

or similar device;

(v) Any report in which a person who

has been requested by a third party to

make a specific extension of credit

directly or indirectly to a consumer

conveys his or her decision with respect

to such request, if the third party

advises the consumer of the name and

address of the person to whom the

request was made, and the person

makes the disclosures to the consumer

required under section 615 of the Fair

Credit Reporting Act (15 U.S.C. 1681m);

or

(vi) A communication described in

section 603(o) of the Fair Credit

Reporting Act (15 U.S.C. 1681a(o)).

(g) Consumer reporting agency means

any person which, for monetary fees,

dues or on a cooperative nonprofit basis,

regularly engages in whole or in part in

the practice of assembling or evaluating

consumer credit information or other

information on consumers for the

purpose of furnishing consumer reports

to third parties, and which uses any

means or facility of interstate commerce

for the purpose of preparing or

furnishing consumer reports.

(h) Control of a company means:

(1) Ownership, control, or power to

vote 25 percent or more of the

outstanding shares of any class of voting

security of the company, directly or

indirectly, or acting through one or

more other persons;

(2) Control in any manner over the

election of a majority of the directors,

trustees, or general partners (or

individuals exercising similar functions)

of the company; or

(3) The power to exercise, directly or

indirectly, a controlling influence over

the management or policies of the

company, as the NCUA determines.

(4) Example. NCUA will presume a

credit union has a controlling influence

over the management or policies of a

CUSO, if the CUSO is 67% owned by

federal or state-chartered credit unions.

(i) Credit union means a federal credit

union.

(j) Opt out means a direction by a

consumer that you not communicate opt

out information about the consumer to

one or more of your affiliates.

(k) Opt out information means

information that:

(1) Bears on a consumer’s credit

worthiness, credit standing, credit

capacity, character, general reputation,

personal characteristics, or mode of

living;

(2) Is used or expected to be used or

collected in whole or in part to serve as

a factor in establishing the consumer’s

eligibility for credit or another purpose

listed in section 604 of the Fair Credit

Reporting Act (15 U.S.C. 1681b); and

(3) Is not a report containing

information solely as to transactions or

experiences between the consumer and

the person reporting or communicating

the information.

(l) Person means any individual,

partnership, corporation, trust, estate,

cooperative, association, government or

governmental subdivision or agency, or

other entity.

(m) You means a federal credit union.

§ 706.9 How may a credit union

communicate opt out information to its

affiliates without the communication being

a consumer report?

In general, your communication to

your affiliates of opt out information

about a consumer is not a consumer

report if:

(a) You have provided the consumer

with an opt out notice;

(b) You have given the consumer a

reasonable opportunity and means

before you communicate the

information to your affiliates, to opt out;

and

(c) The consumer has not opted out.

§ 706.10 What must be in an opt out

notice?

(a) In general. An opt out notice must

be clear and conspicuous, and must

accurately explain:

(1) The categories of opt out

information about the consumer that

you communicate to your affiliates;

(2) The categories of affiliates to

which you communicate the

information and;

(3) The consumer’s ability to opt out;

and

(4) A reasonable means for the

consumer to opt out.

(b) Future communications. Your

notice may describe:

(1) Categories of opt out information

about the consumer that you reserve the

right to communicate to your affiliates

in the future but do not currently

communicate; and

(2) Categories of affiliates to which

you reserve the right in the future to

communicate, but to which you do not

currently communicate, opt out

information about the consumer.

(c) Partial opt out. You may allow a

consumer to select certain opt out

information or certain affiliates, with

respect to which the consumer wishes

to opt out.

(d) Examples of categories of

information that you communicate. (1)

You satisfy the requirement to

categorize the opt out information that

you communicate if you list the

categories in paragraph (d)(2) of this

section, as applicable, and a few

examples to illustrate the types of

information in each category. These

examples may include those in

paragraph (d)(3) of this section, if

applicable.

(2) Categories of opt out information

may include information:

(i) From a consumer’s application;

(ii) From a consumer credit report;

(iii) Obtained by verifying

representations made by a consumer; or

(iv) Provided by another person

regarding its employment, credit, or

other relationship with a consumer.

(3) Examples of information within a

category listed in paragraph (d)(2) of

this section include a consumer’s:

(i) Income;

(ii) Credit score or credit history with

others;

(iii) Open lines of credit with others;

(iv) Employment history with others;

(v) Marital status; and

(vi) Medical history.

(4) You do not satisfy the requirement

if you communicate or reserve the right

to communicate individually

identifiable health information (as

described in section 1171(6)(B) of the

Social Security Act (42 U.S.C.

1320d(6)(B)) but omit illustrative

examples of this information.

(e) Examples of categories of affiliates.

(1) You satisfy the requirement to

categorize the affiliates to which you

communicate opt out information if you

list the categories in paragraph (e)(2) of

this section, as applicable, and a few

Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules 64175

examples to illustrate the types of

affiliates in each category.

(2) Categories of affiliates may

include:

(i) Financial service providers; and

(ii) Non-financial companies.

(f) Sample notice. A sample notice is

included in appendix A to this subpart.

§ 706.11 How may a credit union provide a

reasonable time period to opt out?

(a) In general. You provide a

reasonable opportunity to opt out if you

provide a reasonable period of time

following the delivery of the opt out

notice for the consumer to opt out.

(b) Examples of reasonable period of

time:

(1) In person. You hand-deliver an opt

out notice to the consumer and provide

at least 30 days from the date you

delivered the notice.

(2) By mail. You mail an opt out

notice to a consumer and provide at

least 30 days from the date you mailed

the notice.

(3) By electronic means. You notify

the consumer electronically, and you

provide at least 30 days after the date

that the consumer acknowledges receipt

of the electronic notice.

(c) Continuing opportunity to opt out.

A consumer may opt out at any time.

§ 706.12 What are reasonable means of

opting out?

(a) General rule. You provide a

consumer with a reasonable means of

opting out if you provide a reasonably

convenient method to opt out.

(b) Reasonably convenient methods.

Examples of reasonably convenient

methods include:

(1) Designating check-off boxes in a

prominent position on the relevant

forms included with the opt out notice;

(2) Including a reply form together

with the opt out notice;

(3) Providing an electronic means to

opt out, such as a form that can be

electronically mailed or a process at

your web site, if the consumer agrees to

the electronic delivery of information;

or

(4) Providing a toll-free telephone

number that consumers may call to opt

out.

(c) Methods not reasonably

convenient. Examples of methods that

are not reasonably convenient:

(1) Requiring a consumer to write his

or her own letter to you; or

(2) Referring in a revised notice to a

check-off box that you included with a

previous notice but that you do not

include with the revised notice.

(d) Requiring specific means of opting

out. You may require each consumer to

opt out through a specific means, as

long as that means is reasonable for that

consumer.

§ 706.13 How must a credit union deliver

an opt out notice?

(a) In general. You must deliver an opt

out notice so that each consumer can

reasonably be expected to receive actual

notice in writing or, if the consumer

agrees, electronically.

(b) Examples of expectation of actual

notice. (1) You may reasonably expect

that a consumer will receive actual

notice if you:

(i) Hand-deliver a printed copy of the

notice to the consumer;

(ii) Mail a printed copy of the notice

to the last known address of the

consumer; or

(iii) For the consumer who conducts

transactions electronically, post the

notice on your electronic site and

require the consumer to acknowledge

receipt of the notice as a necessary step

to obtaining a particular product or

service.

(2) You may not reasonably expect

that a consumer will receive actual

notice if you:

(i) Only post a sign at your office or

generally publish advertisements

presenting your notice; or

(ii) Send the notice via electronic mail

to a consumer who does not obtain a

product or service from you

electronically.

(c) Oral description insufficient. You

may not provide an opt out notice solely

by orally explaining the notice, either in

person or over the telephone.

(d) Retention or accessibility. (1) In

general. You must provide an opt out

notice so that it can be retained or

obtained at a later time by the consumer

in writing or, if the consumer agrees,

electronically.

(2) Examples of retention or

accessibility. You provide the notice so

that it can be retained or obtained at a

later time if you:

(i) Hand-deliver a printed copy of the

notice to the consumer;

(ii) Mail a printed copy of the notice

to the last known address of the

consumer upon request of the

consumer; or

(iii) Make your current notice

available on a web site (or link to

another web site) for the consumer who

obtains a product or service

electronically and who agrees to receive

the notice at the web site.

(e) Joint notice with affiliates. You

may provide a joint notice with one or

more affiliates as long as the notice

identifies each person providing it and

is accurate with respect to each.

(f) Joint relationships—(1) General

rule. Notwithstanding any other

provision of this subpart, if two or more

consumers jointly obtain a product or

service from you (joint consumers),

other than a loan, the following rules

apply:

(i) You may provide a single notice to

all joint consumers.

(ii) Any of the joint consumers have

the opportunity to opt out.

(iii) You may treat an opt out

direction by a consumer either as:

(A) Applying to all of the joint

consumers; or

(B) Applying to that particular joint

consumer.

(iv) You must explain in your opt out

notice which of the two policies set

forth in paragraph (f)(1)(iii) of this

section you will follow.

(v) If you follow the policy set forth

in paragraph (f)(1)(iii)(B) of this section,

by treating the opt out of a joint

consumer as applying to that particular

joint consumer, you must also permit:

(A) A joint consumer to opt out on

behalf of other joint consumers; and

(B) One or more joint consumers to

notify you of their opt out directions in

a single response.

(vi) You may not require all joint

consumers to opt out before you

implement any opt out direction.

(vii) If you receive an opt out by a

particular joint consumer that does not

apply to the others, you may disclose

information about the others as long as

no information is disclosed about the

consumer who opted out.

(2) Example. If consumers A and B,

who have different addresses, have a

joint checking account with you and

arrange for you to send statements to A’s

address, you may do any of the

following, but you must explain in your

opt out notice which opt out policy you

will follow. You may send a single opt

out notice to A’s address and:

(i) Treat an opt out direction by A as

applying to the entire account. If you do

so and A opts out, you may not require

B to opt out as well before

implementing A’s opt out direction.

(ii) Treat A’s opt out direction as

applying to A only. If you do so, you

must also permit;

(A) A and B to opt out for each other;

and

(B) A and B to notify you of their opt

out direction in a single response (such

as on a single form) if they choose to

give you separate opt out directions.

(iii) If A opts out only for A, and B

does not opt out, you may disclose opt

out information only about B, and not

about A and B jointly.

(3) Special rule for loans. You must

provide an opt out notice to each

borrower and loan guarantor if you

intend to communicate opt out

64176 Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules

1 If the credit union is using its web site or an email address as the only method by which a

consumer may opt out, the consumer must agree to

the electronic delivery of information.

information about such consumer to

your affiliate.

§ 706.14 When is a revised opt out notice

required?

If you have provided a consumer with

one or more opt notices and plan to

communicate opt out information to

your affiliates about the consumer, other

than as described in those notices, you

must provide the consumer with a

revised opt out notice that complies

with §§ 706.9 through 706.13.

§ 706.15 When must a credit union comply

with an opt out?

If you provide a consumer with an opt

out notice and the consumer opts out,

you must comply with the opt out as

soon as reasonably practicable after you

receive it.

§ 706.16 How long does an opt out last?

An opt out remains effective until

revoked by the consumer in writing or

electronically, as long as the consumer

continues to have a relationship with

you. If the consumer’s relationship with

you terminates, the opt out will apply

to this information. However, a new

notice and opportunity to opt out must

be provided if the consumer establishes

a new relationship with you.

§ 706.17 May a credit union condition the

availability or terms of credit on whether a

consumer opts out?

(a) General rule. If a consumer is an

applicant for credit, you must not

‘‘discriminate against’’ the consumer if

the consumer opts out of your

communication of opt out information

to your affiliates.

(b) Examples of discrimination

against an applicant. You discriminate

against an applicant if you:

(1) Deny the applicant credit because

the applicant opts out;

(2) Vary the terms of credit adversely

to the applicant such as by providing

less favorable pricing terms to an

applicant who opts out; or

(3) Apply more stringent credit

underwriting standards to the applicant

because the applicant opts out.

(c) Regulation B. The terms

‘‘applicant’’ and ‘‘discriminate against’’

in § 706.17 have the same meanings

ascribed to them in 12 CFR part 202.

Appendix A to Subpart B—Sample

Notice

This Appendix contains a sample notice to

facilitate compliance with the notice

requirements of these regulations. A credit

union may use applicable disclosures in this

sample to provide notices required by these

regulations.

Notice of Your Opportunity to Opt Out of

Information Sharing With Our Affiliates

Information we can share—unless you tell us

not to

What Information: Unless you tell us not

to, [Credit Union] may share with our

affiliates information about you including:

• information we obtain from your

application, such as [provide illustrative

examples, such as ‘‘your income’’ or ‘‘your

marital status’’];

• information we obtain from a consumer

report, such as [provide illustrative examples,

such as ‘‘your credit score or credit history’’];

• information we obtain to verify

representations made by you, such as

[provide illustrative examples, such as ‘‘your

open lines of credit’’]; and

• information we obtain from a person

regarding an employment, credit, or other

relationship with you, such as [provide

illustrative examples, such as ‘‘your

employment history’’].

Shared With Whom: Our affiliates who

may receive this information are:

• financial service providers, such as

[provide illustrative examples, such as

‘‘mortgage bankers, broker-dealers, and

insurance agents’’]; and

• non-financial companies, such as

[provide illustrative examples, such as

‘‘direct marketers’’].

How to tell us to not share this information

with our affiliates

If you prefer that we not share this

information with our affiliates, you may

direct us not to share this information by

doing the following [insert one or more of the

reasonable means of opting out listed

below 1]: [call us toll free at {insert toll free

number}]; or [visit our web site at {insert web

site address} and {provide further

instructions how to use the web site option}];

or [e-mail us at {insert the e-mail address}];

or [fill out and tear off the bottom of this

sheet and mail to the following address:

{insert address}]; or [check the appropriate

box on the attached form {attach form} and

mail to the following address: {insert

address}].

Note: Your direction in this paragraph

covers certain information about you that we

might otherwise share with our affiliates. We

may share other information about you with

our affiliates as permitted by law.

[FR Doc. 00–27363 Filed 10–25–00; 8:45 am]

BILLING CODE 7535–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 99–CE–19–AD]

RIN 2120–AA64

Airworthiness Directives; Dornier

Luftfahrt GMBH Models 228–100, 228–

101, 228–200, 228–201, 228–202, and

228-212 Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes to

adopt a new airworthiness directive

(AD) that would apply to all Dornier

Luftfahrt GMBH (Dornier) Models 228–

100, 228-101, 228–200, 228–201, 228–

202, and 228–212 airplanes that have

windshield spray nozzle option SCN

3109 installed. The proposed AD would

require you to deactivate the windshield

spray nozzle heating elements. The

proposed AD is the result of mandatory

continuing airworthiness information

(MCAI) issued by the airworthiness

authority for Germany. The actions

specified by the proposed AD are

intended to prevent the windshield

spray nozzle heating system from

overheating, which could result in

smoke in the cockpit and prompt the

crew to initiate emergency actions.

DATES: The Federal Aviation

Administration (FAA) must receive any

comments on this proposed rule on or

before November 30, 2000.

ADDRESSES: Submit comments in

triplicate to FAA, Central Region, Office

of the Regional Counsel, Attention:

Rules Docket No. 99–CE–19–AD, 901

Locust, Room 506, Kansas City,

Missouri 64106. Comments may be

inspected at this location between 8

a.m. and 4 p.m., Monday through

Friday, holidays excepted.

Service information that applies to the

proposed AD may be obtained from

Dornier Luftfahrt GmbH, Product

Support, P.O. Box 1103, D–82230

Wessling, Federal Republic of Germany;

telephone: (08153) 302631; facsimile:

(08153) 304463. This information also

may be examined at the Rules Docket at

the address above.

FOR FURTHER INFORMATION CONTACT: Karl

Schletzbaum, Aerospace Engineer, FAA,

Small Airplane Directorate, 901 Locust,

Room 301, Kansas City, Missouri 64106;

telephone: (816) 329–4146; facsimile:

(816) 329–4090.

SUPPLEMENTARY INFORMATION: