Federal Register / Vol. 86, No. 178 / Friday, September 17, 2021 / Rules and Regulations 51817 

1Section 605 is codified at 15 U.S.C. 1681c. 

2 15 U.S.C. 1681c(h)(2). 

3 16 CFR part 641. 

4 16 CFR 641.1(c). 

By direction of the Commission. 

April J. Tabor, 

Secretary. 

[FR Doc. 2021–19908 Filed 9–16–21; 8:45 am] 

BILLING CODE 6750–01–C 

FEDERAL TRADE COMMISSION 

16 CFR Part 641 

RIN 3084–AB63 

Duties of Users of Consumer Reports 

Regarding Address Discrepancies 

AGENCY: Federal Trade Commission. 

ACTION: Final rule. 

SUMMARY: The Federal Trade 

Commission (‘‘FTC’’ or ‘‘Commission’’) 

is issuing a final rule (‘‘Final Rule’’) to 

amend its Duties of Users of Consumer 

Reports Regarding Address 

Discrepancies Rule (‘‘Address 

Discrepancy Rule’’) to correspond to 

changes made to the Fair Credit 

Reporting Act (‘‘FCRA’’) by the DoddFrank Act. 

DATES: This rule is effective October 18, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

David Lincicum (202–326–2773), 

Division of Privacy and Identity 

Protection, Bureau of Consumer 

Protection, Federal Trade Commission, 

600 Pennsylvania Avenue NW, 

Washington, DC 20580. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. The Address Discrepancy Rule 

The Fair and Accurate Credit 

Transactions Act of 2003 (‘‘FACT Act’’) 

was signed into law on December 4, 

2003. Public Law 108–159, 117 Stat. 

1952. The FACT Act added section 

605(h) to the Fair Credit Reporting Act 

(‘‘FCRA’’), which requires a national 

consumer reporting agency (‘‘CRA’’) that 

receives a request for a consumer report 

that contains an address substantially 

different from the address on file for the 

consumer to notify the requester of the 

existence of the discrepancy.1 Section 

605(h) also required federal banking 

agencies, the National Credit Union 

Administration and the Commission to 

issue regulations providing guidance 

regarding reasonable policies and 

procedures that a user of a consumer 

report should employ when the user 

receives a notice of address 

discrepancy.2 In 2007, the agencies 

issued the Address Discrepancy Rule to 

satisfy this requirement.3

The Address Discrepancy Rule 

requires a user of consumer reports to 

develop and implement reasonable 

policies and procedures designed to 

enable the user to form a reasonable 

belief that a consumer report relates to 

the consumer about whom it has 

requested a consumer report, when the 

user receives a notice of address 

discrepancy.4 Users must also develop 

and implement reasonable policies and 

procedures for furnishing an address for 

the consumer that the user has 

reasonably confirmed as accurate to the 

CRA from whom it received the notice 

when the user (1) can confirm the 

consumer report relates to the consumer 

about whom the user requested the 


ER17SE21.011</GPH>

Your Credit Score and Understanding Your Credit Score 

[Insert credit score] 

Source: [Insert source] Date: [Insert date score was created] 

Your credit score is a number that reflects the information in your credit report. We used 

your credit score to set the terms of the credit we are offering you. 

Your credit score can change, depending on how your credit history changes. 

Scores range from a low of [Insert bottom number in the range] to a high of [Insert top 

number of the range]. 

[Insert first factor] 

[Insert second factor] 

[Insert third factor] 

[Insert fourth factor] 

[Insert number of enquiries as a key factor, if applicable] 

[If you have any questions regarding your credit score, you should contact [entity that 

provided the credit score] at: 

Address: ___________________________ _ 

[Toll-free] Telephone number: ___________________ _ 
51818 Federal Register / Vol. 86, No. 178 / Friday, September 17, 2021 / Rules and Regulations 

5 16 CFR 641.1(d). 

6Public Law 111–203 (2010). 

7 15 U.S.C. 1681 et seq. The Dodd-Frank Act does 

not transfer to the CFPB rulemaking authority for 

section 615(e) of the FCRA (‘‘Red Flag Guidelines 

and Regulations Required’’) and section 628 of the 

FCRA (‘‘Disposal of Records’’). See 15 U.S.C. 

1681s(e). 

8 77 FR 22200 (April 13, 2012). 

9 12 U.S.C. 5519. 

10 77 FR 22200 (April 13, 2012). 

11 Id. 

12 12 CFR 1022.82. 

13 85 FR 57172 (September 15, 2020). 

14 12 U.S.C. 5519. 

15The comment can be found at 

www.regulations.gov/document/FTC-2020-0065- 

0001. 

16 15 U.S.C. 1681s(e)(1); 12 U.S.C. 5519. 

17 John Kahn (comment 1), www.regulations.gov/ 

document/FTC-2020-0065-0001. 

18 5 U.S.C. 603–605. 

19 85 FR 57172, 57174 (Sept. 15, 2020). 

report, (2) establishes a continuing 

relationship with the consumer, and (3) 

regularly furnishes information about 

the consumer to the CRA.5

B. Dodd-Frank Act 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act (‘‘DoddFrank Act’’) was signed into law in 

2010.6 The Dodd-Frank Act 

substantially changed the federal legal 

framework for financial services 

providers. Among the changes, the 

Dodd-Frank Act transferred to the 

Consumer Financial Protection Bureau 

(‘‘CFPB’’) the Commission’s rulemaking 

authority under portions of the FCRA.7

Accordingly, in 2012, the Commission 

rescinded several of its FCRA rules, 

which had been replaced by rules 

issued by the CFPB.8 The FTC retains 

rulemaking authority for other rules 

promulgated under the FCRA to the 

extent the rules apply to motor vehicle 

dealers described in section 1029(a) of 

the Dodd-Frank Act 9 predominantly 

engaged in the sale and servicing of 

motor vehicles, the leasing and 

servicing of motor vehicles, or both 

(‘‘motor vehicle dealers’’).10 The rules 

for which the FTC retains rulemaking 

authority include the Address 

Discrepancy Rule, which now applies 

only to consumer report users that are 

motor vehicle dealers.11 Consumer 

report users that are not motor vehicle 

dealers are covered by the CFPB’s 

rule.12

II. Regulatory Review of the Address 

Discrepancy Rule 

On September 15, 2020, the 

Commission solicited comments on the 

Address Discrepancy Rule as part of its 

periodic review of its rules and 

guides.13 The Commission sought 

information about the costs and benefits 

of the Rule, and its regulatory and 

economic impact. In addition, the 

Commission proposed to narrow the 

scope of the Address Discrepancy Rule 

to motor vehicle dealers excluded from 

Consumer Financial Protection Bureau 

jurisdiction as described in the DoddFrank Act.14 The Commission received 

one comment.15

III. Overview of Final Rule 

The Commission adopted the Address 

Discrepancy Rule at a time when it had 

rulemaking authority for a broader 

group of consumer report users. While 

the Dodd-Frank Act did not change the 

Commission’s enforcement authority for 

the Address Discrepancy Rule, it did 

narrow the Commission’s rulemaking 

authority with respect to the Rule. It 

now covers only motor vehicle 

dealers.16 The amendments in the DoddFrank Act necessitate a technical 

revision to the Address Discrepancy 

Rule to ensure the regulation is 

consistent with the text of the amended 

FCRA. Accordingly, the Final Rule 

amends the Address Discrepancy Rule 

to properly reflect the Rule’s scope. 

The sole commenter on the Rule 

stated the Address Discrepancy Rule 

allowed him to discover a case of 

identity theft involving the misuse of 

his Social Security number, and argued 

the Rule should not be changed.17 The 

Commission agrees no changes other 

than those required by the Dodd-Frank 

Act are necessary and the Final Rule 

makes no further amendments to the 

existing Rule. Although the Commission 

is revising the scope of the Rule so it is 

consistent with the applicable statute, 

the protections provided to consumers 

will not change: Users of consumer 

reports have the same obligations with 

respect to address discrepancies under 

the CFPB’s corresponding rule as under 

the FTC’s rule. 

IV. Paperwork Reduction Act 

The Address Discrepancy Rule 

contains information collection 

requirements as defined by 5 CFR 

1320.3(c), the definitional provision 

within the Office of Management and 

Budget (‘‘OMB’’) regulations that 

implement the Paperwork Reduction 

Act (‘‘PRA’’). 44 U.S.C. 3501 et seq. 

OMB has approved the Rule’s existing 

information collection requirements 

through December 31, 2021 (OMB 

Control No. 3084–0137). 

The Final Rule amends 16 CFR part 

641. The amendments do not modify or 

add to information collection 

requirements previously approved by 

OMB. The amendments do not make 

any substantive changes to the Rule, 

other than to narrow the scope to motor 

vehicle dealers. The existing clearance 

already reflects that change in scope. 

Therefore, the Commission does not 

believe the amendments substantially or 

materially modify any ‘‘collections of 

information’’ as defined by the PRA. 

V. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(‘‘RFA’’), as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996, requires an agency 

to either provide an Initial Regulatory 

Flexibility Analysis (‘‘IRFA’’) with a 

proposed rule, or certify the proposed 

rule will not have a significant impact 

on a substantial number of small 

entities.18 The Commission published 

an Initial Regulatory Flexibility 

Analysis in order to inquire into the 

impact of the proposed Rule on small 

entities.19 The Commission received no 

responsive comments. 

The Commission does not believe 

these amendments have the threshold 

impact on small entities. The 

amendments effectuate changes to the 

Dodd-Frank Act and will not impose 

costs on small motor vehicle dealers 

because the amendments are for 

clarification purposes and will not 

result in any increased burden on any 

motor vehicle dealer. Thus, a small 

entity that complies with current law 

need not take any different or additional 

action under the Final Rule. Therefore, 

the Commission certifies the rule will 

not have a significant economic impact 

on a substantial number of small 

businesses. 

Although the Commission certifies 

under the RFA the rule will not have a 

significant impact on a substantial 

number of small entities, and hereby 

provides notice of that certification to 

the Small Business Administration, the 

Commission nonetheless has 

determined that publishing a final 

regulatory flexibility analysis (‘‘FRFA’’) 

is appropriate to ensure the impact of 

the rule is fully addressed. Therefore, 

the Commission has prepared the 

following analysis: 

A. Need for and Objectives of the Final 

Rule 

To address the Dodd-Frank Act’s 

changes to the Commission’s 

rulemaking authority the amendments 

change the scope of the Rule. With this 

action, the Commission makes the 

current scope of the Rule clearer. 

Federal Register / Vol. 86, No. 178 / Friday, September 17, 2021 / Rules and Regulations 51819 

20Table of Small Bus. Size Standards Matched to 

North American Indus. Classification System 

Codes, 13 CFR 121.201 (available at: https://

www.sba.gov/document/support--table-sizestandards), updated Aug. 19, 2019. For example, 

used car dealers are classified as NAICS 441120 and 

new car dealers as NAICS 441110. Under those 

standards, the SBA would classify as small 

businesses independent used car dealers having 

annual receipts of less than $27 million and new 

car dealers having fewer than 200 employees each. 1 15 U.S.C. 1681s–2. 

2 74 FR 31484. 

3 16 CFR 660.3. 

4 16 CFR 660.4. 

5Public Law 111–203 (2010). 

6 15 U.S.C. 1681 et seq. The Dodd-Frank Act does 

not transfer to the CFPB rulemaking authority for 

section 615(e) of the FCRA (‘‘Red Flag Guidelines 

and Regulations Required’’) and section 628 of the 

FCRA (‘‘Disposal of Records’’). See 15 U.S.C. 

1681s(e). 

7 77 FR 22200 (April 13, 2012); 12 U.S.C. 5519. 

8 15 U.S.C. 5519. 

9 77 FR 22200. 

10 Id. 

B. Significant Issues Raised in Public 

Comments in Response to the IRFA 

The Commission did not receive any 

comments that addressed the burden on 

small entities. In addition, the 

Commission did not receive any 

comments filed by the Chief Counsel for 

Advocacy of the Small Business 

Administration (‘‘SBA’’). 

C. Estimate of Number of Small Entities 

to Which the Final Rule Will Apply 

The Commission anticipates many 

covered motor vehicle dealers may 

qualify as small businesses according to 

the applicable SBA size standards.20 As 

explained in the IRFA, however, 

determining a precise estimate of the 

number of small entities is not readily 

feasible. No commenters addressed this 

issue. Nonetheless, as discussed above, 

these amendments do not add any 

additional burdens on any covered 

small businesses. 

D. Projected Reporting, Recordkeeping, 

and Other Compliance Requirements, 

Including Classes of Covered Small 

Entities and Professional Skills Needed 

To Comply 

The amendments do not impose any 

new reporting, recordkeeping, or other 

compliance requirements. 

E. Description of Steps Taken To 

Minimize Significant Economic Impact, 

if Any, on Small Entities, Including 

Alternatives 

The Commission did not propose any 

specific small entity exemption or other 

significant alternatives because the 

amendments will not increase reporting 

requirements and will not impose any 

new requirements or compliance costs. 

VI. Other Matters 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the Office of 

Information and Regulatory Affairs 

designated this rule as not a ‘‘major 

rule,’’ as defined by 5 U.S.C. 804(2). 

Final Rule Language 

List of Subjects in 16 CFR Part 641 

Consumer protection, Credit, Trade 

Practices 

For the reasons stated above, the 

Federal Trade Commission amends part 

641 of title 16 of the Code of Federal 

Regulations as follows: 

■ 1. Revise the authority section for part 

641 to read as follows: 

Authority: Pub. L. 108–159, sec. 315; 15 

U.S.C. 1681c(h); 12 U.S.C. 5519(d). 

■ 2. In § 641.1, revise paragraph (a) to 

read as follows: 

§ 641.1 Duties of users of consumer 

reports regarding address discrepancies. 

(a) Scope. This section applies to 

users of consumer reports that are motor 

vehicle dealers excluded from 

Consumer Financial Protection Bureau 

jurisdiction as described in 12 U.S.C. 

5519. 

* * * * * 

By direction of the Commission. 

April J. Tabor, 

Secretary. 

[FR Doc. 2021–19918 Filed 9–16–21; 8:45 am] 

BILLING CODE 6750–01–P 

FEDERAL TRADE COMMISSION 

16 CFR Part 660 

RIN 3084–AB63 

Duties of Furnishers of Information to 

Consumer Reporting Agencies Rule 

AGENCY: Federal Trade Commission. 

ACTION: Final rule. 

SUMMARY: The Federal Trade 

Commission (‘‘FTC’’ or ‘‘Commission’’) 

is issuing a final rule (‘‘Final Rule’’) to 

amend the Duties of Furnishers of 

Information to Consumer Reporting 

Agencies Rule (‘‘Furnisher Rule’’) to 

correspond to changes made to the Fair 

Credit Reporting Act (‘‘FCRA’’) by the 

Dodd-Frank Act. 

DATES: The rule is effective October 18, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

David Lincicum (202–326–2773), 

Division of Privacy and Identity 

Protection, Bureau of Consumer 

Protection, Federal Trade Commission, 

600 Pennsylvania Avenue NW, 

Washington, DC 20580. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. The Furnisher Rule 

The Fair and Accurate Credit 

Transactions Act of 2003 (‘‘FACT Act’’) 

was signed into law on December 4, 

2003. Public Law 108–159, 117 Stat. 

1952. Section 312 of the FACT Act 

amended section 623 1 of the FCRA by 

requiring the FTC, with other agencies, 

to issue guidelines for use by furnishers 

regarding the accuracy and integrity of 

the information about consumers that 

they furnish to consumer reporting 

agencies (‘‘CRAs’’) and to prescribe 

regulations requiring furnishers to 

establish reasonable policies and 

procedures for implementing the 

guidelines. Section 312 also required 

the Commission and the other agencies 

to issue regulations identifying the 

circumstances under which a furnisher 

must reinvestigate direct consumer 

disputes concerning the accuracy of 

information provided by the furnisher to 

a CRA. On July 1, 2009, the Commission 

issued the Furnisher Rule and the 

accompanying guidelines that took 

effect on July 1, 2010.2

The Rule requires furnishers to 

establish and implement reasonable 

written policies and procedures 

regarding the accuracy and integrity of 

the information relating to consumers 

that they furnish to a CRA.3 The Rule 

also requires that furnishers respond to 

direct disputes from consumers.4

B. Dodd-Frank Act 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act (‘‘DoddFrank Act’’) was signed into law in 

2010.5 The Dodd-Frank Act 

substantially changed the federal legal 

framework for financial services 

providers. Among the changes, the 

Dodd-Frank Act transferred to the 

Consumer Financial Protection Bureau 

(‘‘CFPB’’) the Commission’s rulemaking 

authority under portions of the FCRA.6

Accordingly, in 2012, the Commission 

rescinded several of its FCRA rules, 

which had been replaced by rules 

issued by the CFPB.7 The FTC retained 

rulemaking authority for other rules to 

the extent the rules apply to motor 

vehicle dealers described in section 

1029(a) of the Dodd-Frank Act 8

predominantly engaged in the sale and 

servicing of motor vehicles, the leasing 

and servicing of motor vehicles, or both 

(‘‘motor vehicle dealers’’).9 The retained 

rules include the Furnisher Rule, which 

now applies only to motor vehicle 

dealers.10 Furnishers originally covered