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

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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 ...

Informations

Publié par	Foed
Nombre de lectures	71
Langue	English

Extrait

FederalReserve Bank of Dallas

2200 N. PEARL ST.
DALLAS, TX 75201-2272

June
3
, 2004

TO:
The Chief Executive Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District

SUBJECT

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

DETAILS

Notice 04-30

The Boardof 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 public
comment on a number of issues to assist in preparation of the study. 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 creditworthi-
ness 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 such 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 that any further restrictions on providing consumers
with such solicitations would have on consumers.

The Board must receive comments by July 23, 2004. Please address comments to
Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street
and Constitution Avenue, N.W., Washington, DC 20551. Also, you may mail comments elec-
tronically to
regs.comments@federalreserve.gov
. All comments should refer to Docket No. OP-
.5911

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch
Intrastate
(800) 592-1631,
Interstate
(800) 351-1012;
Houston Branch
Intrastate
(800) 392-4162,
Interstate
(800) 221-0363; San Antonio Branch
Intrastate
(800) 292-5810.

- 2 -

The public can also view and submit comments on proposals by the Board and other
federal agencies from the
www.regulations.gov
web site.

ATTACHMENT

A copy of the Board’s notice as it appears on pages 29539–40, Vol. 69, No. 100 of the
Federal Register
dated May 24, 2004, is
attached
.

MORE INFORMATION

For more information, please contact Diane van Gelder, Banking Supervision Depart-
ment, at (214) 922-6282. Paper copies of this notice or previous Federal Reserve Bank notices
can be printed from our web site at
www.dallasfed.org/banking/notices/index.html
.

Federal Register
/Vol. 69, No. 100/Monday, May 24, 2004/Notices
29539

FEDERAL RESERVE SYSTEM
Docket No. OP
–
1195
Request for Information for Study on
Prescreened Solicitations or Firm
Offers of Credit or Insurance
AGENCY
:
Board of Governors of the
Federal Reserve System.
ACTION
:
Notice of Study and Request for
Information.
SUMMARY
:
The Board 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 is
requesting public comment on a number
of issues to assist in preparation of the
study. 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 that any
further restrictions on providing
consumers with such prescreened
solicitations would have on consumers.
DATES
:
Comments must be received by
July 23, 2004.
ADDRESSES
:
You may submit comments,
identified by Docket No. OP
–
1195, by
any of the following methods:
•
Agency Web Site:
http://
www.federalreserve.gov
. Follow the
instructions for submitting comments
on the
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm
.
•
Federal eRulemaking Portal:
http://
www.regulations.gov
. Follow the
instructions for submitting comments.
•
E
–
mail:
regs.comments@federalreserve.gov.
Include docket number in the subject
line of the message.
•
FAX: 202/452
–
3819 or 202/452
–
3102.
•
Mail: Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, N.W.,
Washington, DC 20551.

All public comments are available
from the Board
’
s web site at
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm
as submitted,
except as necessary for technical
reasons. Accordingly, your comments
will not be edited to remove any
identifying or contact information.
Public comments may also be viewed
electronically or in paper in Room MP
–
500 of the Board
’
s Martin Building (20th
and C Streets, N.W.) between 9:00 a.m.
and 5:00 p.m. on weekdays.
FORFURTHERINFORMATIONCONTACT
:

Krista P. DeLargy, Senior Attorney, and
David A. Stein, Counsel, Division of
Consumer and Community Affairs,
Board of Governors of the Federal
Reserve System, at (202) 452
–
3667 or
452
–
2412; for users of
Telecommunications Device for the Deaf
(
‘‘
TDD
’’
) only, contact (202) 263
–
4869.
SUPPLEMENTARYINFORMATION
:
I. Background
The Fair and Accurate Credit
Transactions Act of 2003 (FACT Act)
was signed into law on December 4,
2003. Pub. L. 108
–
159, 117 Stat. 1952.
In general, the FACT Act amends the
Fair Credit Reporting Act (FCRA) to
enhance the ability of consumers to
combat identity theft, to increase the
accuracy of consumer reports, and to
allow consumers to exercise greater
control regarding the type and amount
of marketing solicitations they receive.
The FACT Act also restricts the use and
disclosure of sensitive medical
information. To bolster efforts to
improve financial literacy among
consumers, title V of the Act (entitled
the
‘‘
Financial Literacy and Education
Improvement Act
’’
) creates a new
Financial Literacy and Education
Commission empowered to take
appropriate actions to improve the
financial literacy and education
programs, grants, and materials of the
Federal government. Lastly, to promote
increasingly efficient national credit
markets, the FACT Act establishes
uniform national standards in key areas
of regulation regarding consumer report
information.
The FCRA currently provides that
creditors and insurers in specific
circumstances may use certain
consumer reports as the basis for
sending unsolicited firm offers of credit
or insurance to consumers (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 (CRAs) to
exclude the consumer
’
s name and
address from lists provided by CRAs to

creditors or insurers for use in sending
these prescreened solicitations.
Section 213(e) of the FACT Act
requires the Board to conduct a study of
the ability of consumers to avoid
receiving prescreened solicitations, and
the potential impact that any further
restrictions on providing consumers
with such prescreened solicitations
would have on consumers. The Board
must submit a report summarizing the
results of the study no later than
December 4, 2004, which is 12 months
after the date of enactment of the Act.
The report must contain
recomm