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Compliance: CompBlog clears up credit reporting questions

WASHINGTON (1/30/12)--Some credit unions remain confused about which Fair Credit Reporting Act (FCRA) powers have been transferred to the Consumer Financial Protection Bureau (CFPB), and the Credit Union National Association's (CUNA) CompBlog recently explained what has – and what hasn't – been shifted to the new agency.

The Dodd Frank Act transferred FCRA rulemaking authority to the CFPB as of July 21, 2011, and FCRA regulations were republished, with slight changes, as an interim final Regulation V rule five months later.  That interim final rule is now effective, and the CFPB will accept public comment until Feb. 21.

The CFPB regulation "substantially duplicates" most of the interagency FCRA regulations issued by the National Credit Union Administration (NCUA), the Federal Trade Commission (FTC), and federal banking agencies, as well as the stand-alone FTC regulations.

The CFPB does not currently have the authority to promulgate rules regarding FCRA provisions on: the disposal of consumer information, identity theft red flags, and rules on the duties of card issuers regarding changes of address.

CUNA has advised credit unions to continue to refer to NCUA and FTC regulations, and not the CFPB Regulation V, for these provisions.

However, aside from the above exceptions, "Reg V is pretty much a one-stop-shop for FCRA regulations," the Comp Blog post said.

Anyone using model forms issued agencies other than the CFPB  will need to update these forms and disclosures, CUNA said. However, credit unions and other institutions will be allowed to use "substantially similar" model forms and disclosures that were issued by other agencies until Jan. 1, 2013.

For this and other CompBlog posts, use the resource link.
 
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