To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
In a press release, the Federal Reserve Board announced its approval of final rules to establish effective dates for all provisions of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) that do not have a statutorily prescribed effective date. These regulations are being issued jointly with the Federal Trade Commission (FTC).
The FACT Act amended the Fair Credit Reporting Act (FCRA) and required the Board and the FTC to adopt final rules establishing the effective dates for certain provisions of the FACT Act. In mid-December, the Board and the FTC had jointly adopted interim final rules that established December 31, 2003 as the effective date for the preemption provisions of the FACT Act as well as provisions authorizing the agencies to adopt rules or take other actions to implement the FACT Act. The agencies now have adopted final joint rules with the same schedule of effective dates contained in the interim rules.
The agencies have also adopted joint final rules establishing March 31, 2004 as the effective date for the provisions of the FACT Act that do not require significant changes to business procedures. With regard to other provisions that require such changes, the effective date was determined to be December 1, 2004, to allow industry a reasonable time to establish systems that comply with the statute. These final rules were adopted after a review of the comments received on the proposal.
Legal and Compliance Risk Department