[Federal Register Volume 76, Number 143 (Tuesday, July 26, 2011)]
[Rules and Regulations]
[Pages 44462-44463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-18688]
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FEDERAL TRADE COMMISSION
16 CFR Part 600
Statement of General Policy or Interpretation; Commentary on the
Fair Credit Reporting Act
AGENCY: Federal Trade Commission.
ACTION: Final rule; rescission of commentary.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') is
rescinding its Statements of General Policy or Interpretations Under
the Fair Credit Reporting Act (``FCRA''). Recent legislation
transferred authority to issue interpretive guidance under the FCRA to
the Consumer Financial Protection Bureau (``CFPB'').
DATES: Effective Date: July 26, 2011.
ADDRESSES: Copies of this document are available from: Public Reference
Branch, Room 130, Federal Trade Commission, 600 Pennsylvania Avenue,
NW., Washington, DC 20580. Copies of this document are also available
on the Internet at the Commission's Web site: http://www.ftc.gov.
FOR FURTHER INFORMATION CONTACT: Anthony Rodriguez, (202) 326-2757,
Division of Privacy and Identity Protection, Bureau of Consumer
Protection, Federal Trade Commission, 600 Pennsylvania Avenue, NW.,
Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Background
The FCRA \1\ governs the collection, assembly, and use of consumer
report information and provides the framework for the credit reporting
system in the United States. The FTC has played a key role in the
implementation, oversight, enforcement, and interpretation of the FCRA
since its enactment in 1970. In May 1990, the Commission issued its
Statement of General Policy or Interpretations under the FCRA, which
included a comprehensive Commentary on the FCRA (the ``1990
[[Page 44463]]
Commentary'').\2\ The 1990 Commentary provided broad guidance on the
Commission's interpretation of the provisions of the FCRA, but
specified that the interpretations were not trade regulation rules or
regulations and did not have the force or effect of statutory
provisions.\3\
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\1\ 15 U.S.C. 1681 et seq.
\2\ 55 FR 18804 (May 4, 1990). The 1990 Commentary followed a
proposal published in August 1988. 53 FR 29696 (Aug. 8, 1988). It
included eight interpretations that the Commission had issued in the
1970s (former 16 CFR 600.1 through 600.8).
\3\ 16 CFR 600.2, citing 16 CFR 1.73.
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II. Basis for Removal of the 1990 Commentary
Since the publication of the 1990 Commentary, the FCRA has been
amended several times in the ensuing years. The two most extensive
amendments were the Consumer Credit Reporting Reform Act of 1996 (the
``1996 amendments'') \4\ and the Fair and Accurate Credit Transactions
Act of 2003 (``FACT Act'').\5\
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\4\ Title II, Subtitle D, Chapter 1, of the Omnibus Consolidated
Appropriations Act for Fiscal Year 1997, Public Law 104-208 (Sept.
30, 1996).
\5\ Public Law 108-159 (Dec. 4, 2003).
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The 1996 Amendments expanded the duties of consumer reporting
agencies (``CRAs''), and also increased the obligations of users of
consumer reports, particularly employers. Most significantly, the 1996
Amendments imposed duties on a class of entities not previously treated
by the FCRA--furnishers of information to CRAs--by including
requirements related to accuracy and the handling of disputes by the
entities that provided information to CRAs.
In 2003, the FACT Act \6\ further expanded the FCRA.\7\ It added
several sections to assist consumers and businesses in combating
identity theft and reducing the damage to consumers when that crime
occurred, including granting consumers the right to request free annual
reports from nationwide CRAs. The Commission, often in conjunction with
the Federal financial agencies, issued numerous rules to implement the
various FACT Act provisions.\8\
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\6\ Id.
\7\ During the seven years between the 1996 Amendments and the
FACT Act, there were a number of more modest revisions, the most
significant of which was a 1999 amendment that specifically
authorized the Board of Governors of the Federal Reserve System,
Federal Deposit Insurance Corporation, Office of the Comptroller of
the Currency, Office of Thrift Supervision, and National Credit
Union Administration to promulgate regulations under the FCRA for
the banks and other entities subject to their jurisdiction. Section
506 of the Gramm-Leach-Bliley Act (Pub. L. 106-102 (Nov. 12, 1999);
FCRA Sec. 621(e)).
\8\ The Commission's FACT Act rules are listed on the agency Web
site at http://www.ftc.gov/os/statutes/fcrajump.htm.
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As a result of these significant changes in the FCRA, as well as
the passage of time, the 1990 Commentary has become partially obsolete.
In addition, on July 21, 2010, President Obama signed into law the
Consumer Financial Protection Act of 2010 (``CFPA'').\9\ Under the
CFPA, much of the authority of the Commission and the Federal financial
agencies to publish rules, regulations, or guidelines under the FCRA
transfers to the CFPB. Although the CFPA provides for the transfer of
existing regulations and guidelines to the CFPB, the Commission does
not believe that it is appropriate to transfer the Commentary given its
staleness. Indeed, in some respects, the Commentary is in conflict with
the law as it has been amended. Accordingly, the Commission is
rescinding 16 CFR 600.1, 600.2, and the Appendix to Part 600--
Commentary on the Fair Credit Reporting Act.
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\9\ Title X, Public Law 111-203 (Dodd-Frank Wall Street Reform
and Consumer Protection Act).
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Under 5 U.S.C. 553(b)(A), the requirement to provide prior notice
and an opportunity for public comment does not apply to interpretative
rules, general statements of policy, or rules of agency organization,
procedure, or practice. Further, under 5 U.S.C. 553(d)(2), the
rescission may take effect immediately upon publication of this
document in the Federal Register. Accordingly, the Commission rescinds
16 CFR 600.1, 600.2, and the Appendix to Part 600--Commentary on the
Fair Credit Reporting Act, effective immediately.
III. Regulatory Flexibility Act
Because these statements of general policy and interpretations are
not ``rules'' subject to the Regulatory Flexibility Act, see 5 U.S.C.
601(2), the Commission is not required to publish any initial or final
regulatory flexibility analysis under the Regulatory Flexibility Act as
part of such action. See 5 U.S.C. 603(a), 604(b).
List of Subjects in 16 CFR Part 600
Credit, Trade practices.
0
Accordingly, for the reasons set forth above, under the authority of 16
U.S.C. 1681s, the Commission amends Title 16, Chapter I, Code of
Federal Regulations, by removing and reserving part 600.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011-18688 Filed 7-25-11; 8:45 am]
BILLING CODE 6750-01-P