To All Depository Institutions and Others
Concerned in the Second Federal Reserve District:
The Federal Reserve Board announced that it is conducting a study on the adequacy of investigations of disputed consumer information reported to consumer reporting agencies. In connection with the study, the Board is soliciting public comment on issues that will assist in the preparation of the study.
The Fair and Accurate Credit Transactions Act of 2003 (FACT Act), which generally amends the Fair Credit Reporting Act (FCRA) requires the Board and the Federal Trade Commission to conduct a joint study of the extent to which consumer reporting agencies and furnishers of information to these agencies comply with certain FCRA requirements. The study will focus on: (1) the prompt investigation of disputed information; (2) the completeness of information reported to consumer reporting agencies; and (3) the prompt correction or deletion of any information that cannot be verified.
The FACT Act also requires that the study, which must be submitted to Congress by December 4, 2004, include recommendations for appropriate legislative and regulatory action. Comments are due by September 17, 2004.
Legal and Compliance Risk Department