The federal
bank, thrift and credit union regulatory agencies today issued for publication
in the Federal Register a proposed rule under the Fair Credit Reporting Act
(FCRA) that would incorporate
the statutory prohibition on obtaining or using medical information in
connection with credit eligibility determinations and, as required by the
statute, create certain exceptions to be applied in limited circumstances.
Section 411
of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) amends the
FCRA to provide that a creditor may not obtain or use medical information in
connection with any determination of a consumers eligibility, or continued
eligibility, for credit, except as permitted by regulations. The FACT Act requires the agencies to
prescribe regulations that permit creditors to obtain and use medical
information for eligibility purposes when necessary and appropriate to protect
legitimate operational, transactional, risk, consumer, and other needs. The FACT Act further provides for the
regulations creating these exceptions to be issued in final form within six
months of the date of enactment of the FACT Act, or June 4, 2004.
As required
by section 411, the proposed regulations would grant exceptions to allow
creditors to obtain or use medical information in those circumstances that the
agencies believe are necessary and appropriate in connection with
determinations of consumer eligibility for credit.
Section 411
of the FACT Act also amends the FCRA to limit the ability of creditors and
others to share medical-related information with affiliates, except as
permitted by the statute, regulation, or order. The proposed rule would enumerate situations in which creditors
would be permitted to share medical information among affiliates.
The
proposed rule is being issued by the Board of Governors of the Federal Reserve
System, Federal Deposit Insurance Corporation, National Credit Union
Administration, Office of the Comptroller of the Currency and Office of Thrift
Supervision. The rules of each agency
are substantively identical.
Comment on
the proposed rule is requested within thirty days after publication in the
Federal Register. The Federal Register
notice is attached.
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Attachment
Media Contacts:
Federal Reserve Susan
Stawick (202) 452-2955
FDIC David Barr (202)
898-6992
NCUA Cherie
Umbel (703) 518-6330
OCC Dean
DeBuck (202) 874-5770
OTS Erin
Hickman (202) 906-6913