The bulletin also describes OCC policies for FCRA examinations in light of limitations the FCRA imposes on the ability of the federal financial institutions supervisory agencies, including the OCC, to conduct FCRA examinations of the institutions they supervise. The Economic Growth and Regulatory Paperwork Reduction Act of 1996 substantially amended the Fair Credit Reporting Act effective September 30, 1997. The amendments impose a number of new obligations on banks while providing new opportunities for banks to use and share customer information with affiliated companies. For example, for the first time, banks are responsible for the accuracy of the customer data they submit to credit bureaus. In addition, when denying a consumer credit on the basis of information contained in a credit report, the bank must notify the consumer of the action and inform the consumer of his or her right to obtain information that was the basis for the action.
Banks also have new duties when using credit reports in the employment process.
On the other hand, the amended FCRA expands the type of customer information that banks and their affiliates can freely share. Under the FCRA, a bank may convey information to an affiliate about its transactions and experiences with a particular customer. The revised FCRA also increases a banks' ability to preselect consumers for offers of credit or insurance based on their credit reports, as well as to withdraw such offers if the consumer ultimately fails to meet the selection criteria. In taking advantage of these new opportunities, banks must notify consumers being solicited how they were selected and provide consumers with a toll free telephone number to direct that they no longer receive such solicitations. The FCRA law provides for civil, criminal, and federal and state agency enforcement against violations of certain provisions of the law.