To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
In a press release, the Federal Reserve Board requested public comment for a Board study and report to Congress on prescreened solicitations for credit or insurance.
The Fair and Accurate Credit Transactions Act of 2003 (FACT Act), which generally amends the Fair Credit Reporting Act (FCRA), requires the Board to conduct a study concerning prescreened solicitations. Under the FCRA, creditors and insurers in specific circumstances may use certain consumer reports as the basis for sending unsolicited offers of credit or insurance to consumers who meet certain criteria for credit worthiness or insurability (so-called "prescreened solicitations").
The FCRA provides a mechanism by which consumers can elect not to receive these prescreened solicitations, by directing consumer reporting agencies to exclude the consumer's name and address from lists provided by these agencies to creditors or insurers for use in sending prescreened solicitations. Section 213(e) of the FACT Act requires the Board to conduct a study of the ability of consumers to avoid receiving these prescreened solicitations (including using the mechanism described above), and the potential impact of any further restrictions on providing consumers with such prescreened solicitations.
The Board is requesting public comment on a number of issues to assist in preparation of the study and a report that the Board must submit to Congress by December 4, 2004. Comments are requested by July 23, 2004.
Legal and Compliance Risk Department