Request for Comment on Board Study and Report to Congress on Prescreened Solicitations for Credit or

ll★KFederal Reserve Bank of Dallas2200 N. PEARL ST.DALLAS, TX 75201-2272June 3, 2004Notice 04-30TO: The Chief Executive Officer of eachfinancial institution and others concernedin the Eleventh Federal Reserve DistrictSUBJECTRequest for Comment on Board Study and Report to Congresson Prescreened Solicitations for Credit or InsuranceDETAILSThe Board of Governors is conducting a study concerning prescreened solicitations,pursuant to section 213(e) of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act),which generally amends the Fair Credit Reporting Act (FCRA). The Board has requested publiccomment on a number of issues to assist in preparation of the study. Under the FCRA, creditorsand insurers in specific circumstances may use certain consumer reports as the basis for sendingunsolicited offers of credit or insurance to consumers who meet certain criteria for creditworthi-ness or insurability (so-called “prescreened solicitations”). The FCRA provides a mechanism bywhich consumers can elect not to receive these prescreened solicitations by directing consumerreporting agencies to exclude the consumer’s name and address from lists provided by theseagencies to creditors or insurers for use in sending such solicitations.Section 213(e) of the FACT Act requires the Board to conduct a study of the abilityof consumers to avoid receiving these prescreened solicitations (including using the mechanismdescribed above) and the potential impact that ...