Section 301 of S.2155 amends section 605 of the Fair Credit Reporting Act (FCRA) (codified at 15 USC §1681c). Section 605 establishes requirements regarding the information in consumer reports and disclosures regarding them. S.2155 adds subsection 605(i) and (j) establishing requirements regarding security freezes. These changes will primarily affect consumer reporting agencies (CRAs) rather than credit unions.
One change adds a required notice for whenever a summaries of rights is required by FCRA’s section 609. While section 609 contains a lot of disclosure requirements, only subsections 609(c) and (d) specifically reference a “summary of rights.” Last week, the BCFP issued an interim final rule updating the Summary of Consumer Rights in Appendix K to Part 1022and the Summary of Consumer Identity Theft Rights in Appendix I. These are required under section 609(c) and (d), respectively (codified at 15 USC §1681g (c) and (d)).
The Summary of Consumer Rights must be provided by a CRA whenever it makes a written disclosure of information to the consumer. Also, it may need to be provided by employers taking adverse employment actions in connection with a credit report. The Summary of Consumer Identity Theft Rights must be provided by the CRA when a consumer reports that they are a victim of identity theft. In the interim final rule, the Bureau specified that it is soliciting commentary to determine how to proceed regarding other model forms.
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