Opinion ID: 185752
Heading Depth: 2
Heading Rank: 1

Heading: Authority to Regulate CRAs

Text: 10 First, Trans Union asserts the FTC lacks authority to promulgate regulations governing CRAs because a CRA is not a financial institution subject to the FTC's regulatory authority under 15 U.S.C. § 6804(a)(1). In reviewing the FTC's interpretation of the GLBA, we use the familiar Chevron analysis: 11 If ... `Congress has directly spoken to the precise question at issue,' we must give effect to Congress's `unambiguously expressed intent.' Secretary of Labor v. [Fed. Mine Safety & Health Review Comm'n], 111 F.3d 913, 917 (D.C.Cir.1997) (quoting Chevron USA, Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 842-43, 104 S.Ct. 2778, 2782, 81 L.Ed.2d 694 (1984)). If `the statute is silent or ambiguous with respect to the specific issue,' we ask whether the agency's position rests on a `permissible construction of the statute.' Id. (quoting Chevron, 467 U.S. at 843, 104 S.Ct. 2778, 2782, 81 L.Ed.2d 694). 12 National Multi Housing Council v. EPA, 292 F.3d 232, 234 (D.C.Cir.2002) (quoting Cyprus Emerald Resources Corp. v. Fed. Mine Safety & Health Review Comm'n, 195 F.3d 42, 45 (D.C.Cir.1999)). To the extent that the statutory term financial institution may be ambiguous, we believe the FTC reasonably construed the term to apply to a CRA. 13 Section 6809 of title 15 defines financial institution as any institution the business of which is engaging in financial activities as described in section 1843(k) of Title 12. Section 1843(k)(4) of title 12 in turn defines activities that are financial in nature to include [e]ngaging in any activity that the [Federal Reserve] Board has determined, by order or regulation that is in effect on November 12, 1999, to be so closely related to banking or managing or controlling banks as to be a proper incident thereto (subject to the same terms and conditions contained in such order or regulation, unless modified by the Board). On February 28, 1997, the Federal Reserve Board promulgated a regulation, still in effect on November 12, 1999, which expressly identifies as among activities... so closely related to banking or managing or controlling banks as to be a proper incident thereto those activities that are usual in connection with making, acquiring, brokering or servicing loans or other extensions of credit, including: 14 Credit bureau services. Maintaining information related to the credit history of consumers and providing the information to a credit grantor who is considering a borrower's application for credit or who has extended credit to the borrower. 15 Bank Holding Companies and Change in Bank Control (Regulation Y), 62 Fed.Reg. 9290, 9329 (1997) (codified at 12 C.F.R. § 225.28(b)(2)(v)). Because the Federal Reserve Board's regulation characterizes credit bureau services as so closely related to banking or managing or controlling banks as to be a proper incident thereto, we conclude the FTC permissibly determined that Trans Union, which provides such services, see Appellant's Brief at 3, comes within the GLBA's definition of a financial institution 4 and is therefore subject to its rulemaking authority under 15 U.S.C. § 6804(a)(1).