Summary of Rights and Notices of Duties Under the Fair Credit Reporting Act, 52655-52671 [2010-21202]

Download as PDF Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules established for the safety and management of IFR operations. Class E airspace designations are published in Paragraph 6005 of FAA order 7400.9T, signed August 27, 2009, and effective September 15, 2009, which is incorporated by reference in 14 CFR 71.1. The Class E airspace designation listed in this document will be published subsequently in the Order. The FAA has determined that this proposed regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. It, therefore, (1) is not a ‘‘significant regulatory action’’ under Executive Order 12866; (2) is not a ‘‘significant rule’’ under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a Regulatory Evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified that this proposed rule, when promulgated, would not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. The FAA’s authority to issue rules regarding aviation safety is found in Title 49 of the United States Code. Subtitle I, Section 106 describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency’s authority. This proposed rulemaking is promulgated under the authority described in Subtitle VII, Part, A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This proposed regulation is within the scope of that authority as it would establish Class E airspace at Bamberg County Airport, Bamberg, SC. Lists of Subjects in 14 CFR Part 71 Airspace, Incorporation by reference, Navigation (Air). WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS The Proposed Amendment In consideration of the foregoing, the Federal Aviation Administration proposes to amend 14 CFR Part 71 as follows: PART 71—DESIGNATION OF CLASS A, B, C, D, AND CLASS E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS 1. The authority citation for Part 71 continues to read as follows: VerDate Mar<15>2010 15:26 Aug 26, 2010 Jkt 220001 Authority: 49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– 1963 Comp., p. 389. § 71.1 [Amended] 2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation Administration Order 7400.9T, Airspace Designations and Reporting Points, signed August 27, 2009, effective September 15, 2009, is amended as follows: Paragraph 6005 Class E airspace areas extending upward from 700 feet or more above the surface of the earth. * * * * * ASO SC E5 Bamberg, SC [NEW] Bamberg County Airport, SC (Lat. 33°18′16″ N., long. 81°06′30″ W.) That airspace extending upward from 700 feet above the surface within a 6.3-mile radius of the Bamberg County Airport. Issued in College Park, Georgia, on August 12, 2010. Mark D. Ward, Manager, Operations Support Group, Eastern Service Center, Air Traffic Organization. 52655 Interested parties are invited to submit written comments electronically or in paper form by following the instructions in the SUPPLEMENTARY INFORMATION section below. Comments in electronic form should be submitted by using the following weblink: (https:// ftcpublic.commentworks.com/ftc/ fcrarevisednotices) (and following the instructions on the web-based form). Comments filed in paper form should be mailed or delivered to the following address: Federal Trade Commission, Office of the Secretary, Room H-135 (Annex M), 600 Pennsylvania Avenue, NW, Washington, D.C. 20580, in the manner detailed in the SUPPLEMENTARY INFORMATION section below. FOR FURTHER INFORMATION CONTACT: Pavneet Singh, Attorney, Division of Privacy and Identity Protection, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580, (202) 3262252. SUPPLEMENTARY INFORMATION: ADDRESSES: [FR Doc. 2010–21215 Filed 8–26–10; 8:45 am] I. Background BILLING CODE 4910–13–P Under section 609(c) of the Fair Credit Reporting Act (FCRA), consumer reporting agencies (CRAs) are required to include a summary of consumer rights with every consumer report they provide to consumers.1 The Commission is required to provide a model summary of rights (Summary of Rights) to be used for this purpose. In addition, section 607(d)(2) of the FCRA requires the Commission to prescribe the content of notices that CRAs must provide to those who furnish information to them (Furnisher Notice) and to those who obtain consumer reports from them (User Notice).2 The Commission originally issued these three documents in 1997.3 It issued revised versions in 20044 to reflect changes made to the FCRA by the Fair and Accurate Credit Transactions Act of 2003 (FACT Act).5 Since then, the Commission and other financial regulators have finalized new rules under the FACT Act. The Commission is now proposing a newly revised Summary of Rights, User Notice, and FEDERAL TRADE COMMISSION 16 CFR Part 698 RIN 3084-AA94 Summary of Rights and Notices of Duties Under the Fair Credit Reporting Act Federal Trade Commission Proposed rule; request for comment. AGENCY: ACTION: Pursuant to its responsibilities under the Fair Credit Reporting Act, the Federal Trade Commission (Commission or FTC) is publishing for public comment revised versions of three documents: a summary of consumer rights, a notice of responsibilities for persons that furnish information to consumer reporting agencies, and a notice of responsibilities for persons that obtain consumer reports from consumer reporting agencies. The Commission is proposing the current revisions to incorporate changes in rights and obligations created by several new rules issued pursuant to the Fair and Accurate Credit Transactions Act of 2003. The Commission is also proposing revisions to improve the clarity and usefulness of the documents for consumers, furnishers, and users. DATES: Comments must be received on or before September 21, 2010. SUMMARY: PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 1 15 U.S.C. 1681g(c). Under section 609(a) of the FCRA, 15 U.S.C. 1681g(a), CRAs are required to disclose to consumers the information in their files upon request. CRAs generally refer to these disclosures as ‘‘file disclosures’’ and provide them in a different format than the consumer reports they provide to third parties. For purposes of this notice, the term ‘‘consumer report’’ includes a ‘‘file disclosure’’ from a CRA to a consumer. 2 15 U.S.C. 1681e(d). 3 62 FR 35586 (1997). 4 69 FR 69776 (2004). 5 Pub. L. 108-159, 117 Stat. 1952 (2003). E:\FR\FM\27AUP1.SGM 27AUP1 52656 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules In addition, the proposed revised Summary of Rights reflects changes to improve the clarity and readability of the document. The changes include reordering some of the information provided, as well as making formatting changes and minor wording changes to certain sections. Finally, in order to keep the Summary of Rights sufficiently brief and to II. Summary of the Proposed Revised improve its readability, the proposed Notices revised Summary of Rights deletes A. Summary of Rights (Appendix F to 16 certain information that the Commission is not required to include. The current CFR 698) Summary of Rights incorporates a list of Section 609(c) of the FCRA requires Federal agencies responsible for the Commission to issue a model Summary of Rights, which must include enforcing the FCRA, which the CRAs are also required to provide to an explanation of (1) the consumer’s consumers with their consumer reports. right to obtain his or her consumer However, the FCRA does not require report; (2) the frequency and circumstances under which a consumer this list to be included in the Summary of Rights. Accordingly, the Commission may receive free consumer reports proposes not to include this information under the FCRA; (3) the right of a in the proposed revised Summary of consumer to dispute incorrect or Rights. Instead, the Commission outdated information in his or her proposes to make available on its consumer report; and (4) the right of a website a separate document that lists consumer to obtain a credit score.7 the Federal agencies responsible for With respect to a consumer’s right to enforcing the FCRA, along with their dispute information in his or her addresses, phone numbers, and website consumer report, on July 1, 2009, the addresses, which can be updated more Commission and other federal regulatory agencies issued the Furnisher easily. CRAs may use this document to satisfy their obligation to provide Direct Dispute Rule, which took effect consumers a list of Federal agencies on July 1, 2010. Prior to the effective responsible for enforcing the FCRA. date of this Rule, under the FCRA, consumers had a right to dispute the B. Furnisher Notice (Appendix G to 16 accuracy of information in their CFR 698) consumer reports only by filing a The proposed revised Furnisher dispute with a CRA. Under the Notice reflects the new duties of Furnisher Direct Dispute Rule, furnishers set forth in the Furnisher consumers may dispute the accuracy of Direct Dispute Rule described above. It information in their consumer report also reflects new duties contained in the directly with the furnisher of that Furnisher Accuracy Rule, which became information as well as the CRA. The effective on July 1, 2010. The Rule proposed revised Summary of Rights requires furnishers to establish policies reflects this additional dispute right. and procedures to ensure the accuracy Because it is difficult to inform and integrity of the consumer report consumers fully of their dispute rights information they furnish to CRAs, and in a summary fashion, the proposed to consider the guidelines prescribed by revised Summary of Rights also directs consumers to the Commission’s website the agencies in establishing these policies and procedures. In addition, the for more information about disputing proposed revised Furnisher Notice also consumer report errors.8 includes revisions to improve the clarity 6 At this time, the Commission is not issuing a and readability of the document.9 WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS Furnisher Notice to reflect these new rules, as explained further below.6 The proposed revised versions are also intended to improve the clarity and usefulness of the documents for consumers, furnishers, and users. For comparison, the 2004 versions of these notices can be found at (www.ftc.gov/ opa/2004/11/facta.shtm). revised version of the identity theft rights summary required by section 609(d) of the FCRA. The Commission is currently undertaking a survey of identity theft victims who contacted the FTC and expects that when completed, the results of that survey may influence any future revisions of the identity theft rights summary. See 73 FR 37457 (2009). 7 Section 609(c) also requires that CRAs notify consumers that they may have additional rights under state law and that the FCRA does not require accurate, current derogatory information to be removed from consumers’ files. Thus, the Commission has also included this information in its Summary of Rights. 8 The Commission is concurrently updating its consumer education materials on disputing errors VerDate Mar<15>2010 15:26 Aug 26, 2010 Jkt 220001 C. User Notice (Appendix H to 16 CFR 698) The proposed revised User Notice reflects the new duties of users set forth in several of the rules finalized pursuant to the FACT Act. First, effective January in credit reports to reflect consumers’ new right to dispute inaccurate information directly with furnishers. 9 These revisions include deleting citation references to the relevant sections of the FCRA from the text of the Notice and placing them in endnotes to make the document easier to read. PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 1, 2011, the Risk-Based Pricing Rule will require users of consumer reports to provide risk-based pricing notices in certain circumstances if they extend credit to a particular consumer on less favorable terms than those they offer to others. As an alternative to providing risk-based pricing notices, the Rule permits such users to provide consumers who apply for credit with a free credit score and information about their credit score. Second, if a CRA notifies a user of consumer reports that the address the user provided about a consumer is different from the address in the consumer report, the Address Discrepancy Rule, which became effective on January 1, 2008, requires the user to implement reasonable procedures to verify that the consumer report relates to the correct consumer. Users of consumer reports that verify the address is accurate, and that regularly furnish information to the CRA, have additional responsibilities under the Rule. Finally, the Medical Information Rules, which became effective on April 1, 2006, prescribe the circumstances under which creditors may obtain, use, and share medical information. The proposed revised User Notice has been revised to reflect all of these obligations, as well as to improve the clarity and readability of the document.10 III. Request for Comments The Commission invites comment on all aspects of the proposed revised Summary of Rights, Furnisher Notice, and User Notice. The Commission also invites comment from all interested parties on the following issues: Summary of Rights (Appendix F) ∑ Has the existing Summary of Rights been effective in informing consumers about their rights under the FCRA? ∑ Has the Commission included all of the rights that should be included in the model summary? ∑ Has the Commission clearly and sufficiently described a consumer’s ability to dispute inaccurate consumer report information with both the furnisher of the information and with the CRA? Is it useful to provide a reference to the FTC’s website for additional information about disputing such errors? ∑ Is it appropriate to provide information about the Federal agencies responsible for enforcing the FCRA and the contact information for these agencies in a separate document, which 10 As with the Furnisher Notice, these revisions include deleting citation references to the relevant sections of the FCRA from the text of the User Notice and placing them in endnotes. E:\FR\FM\27AUP1.SGM 27AUP1 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules will be made available on the FTC’s website? ∑ Are there areas where the understandability of the proposed revised Summary of Rights could be improved? Are there any sections for which the language does not accurately convey the substance of the provision? If so, how could such sections be improved? ∑ The proposed revised Summary of Rights uses the term ‘‘credit report’’ to describe a consumer report under the FCRA because the Commission believes it is the term with which consumers are most familiar. However, as explained in the proposed revised Summary of Rights, consumers may obtain reports that contain non-credit information, such as rental or medical history information. Should an additional or alternate term be used to describe these types of reports? Would it be more effective and is it feasible to create a separate model Summary of Rights to send to consumers who request reports that contain non-credit information? Furnisher Notice (Appendix G) ∑ Is the proposed revised Furnisher Notice accurate and easy to understand? In what ways could it be improved? ∑ The Commission expects that the Furnisher Notice will be sent to a wide range of entities with varying degrees of legal sophistication. Are the duties set forth in the proposed notice clear and understandable? Could the description of the duties be improved? ∑ Does the deletion of the citations to the relevant sections of the FCRA from the text to the endnotes improve the readability of the document? Or are the citations necessary for furnishers to locate and understand their statutory obligations? WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS User Notice (Appendix H) ∑ The proposed revised User Notice discusses the principal portions of the FCRA that impose obligations upon those who receive consumer reports. Should additional information be included in the notice? ∑ The Commission expects that the User Notice will be sent to a wide range of users with varying degrees of legal sophistication. Are the duties set forth in the proposed notice clear and easy to understand? Could the description of the duties be improved? ∑ Does the deletion of the citations to the relevant sections of the FCRA from the text to the endnotes improve the readability of the document? Or are the citations necessary for users to locate and understand their statutory obligations? VerDate Mar<15>2010 15:26 Aug 26, 2010 Jkt 220001 Interested parties are invited to submit written comments electronically or in paper form. Comments should refer to ‘‘FACTA Notices, Project No. P105408,’’ to facilitate the organization of comments. Please note that your comment – including your name and your state – will be placed on the public record of this proceeding, including on the publicly accessible FTC website, at (http://www.ftc.gov/os/ publiccomments.shtm). Because comments will be made public, they should not include any sensitive personal information, such as any individual’s Social Security number; date of birth; driver’s license number or other state identification number, or foreign country equivalent; passport number; financial account number; or credit or debit card number. Comments also should not include any sensitive health information, such as medical records or other individually identifiable health information. In addition, comments should not include ‘‘trade secret or any commercial or financial information which is obtained from any person and which is privileged or confidential’’ as provided in Section 6(f) of the Federal Trade Commission Act (‘‘FTC Act’’), 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing matter for which confidential treatment is requested must be filed in paper form, must be clearly labeled ‘‘Confidential,’’ and must comply with FTC Rule 4.9(c).11 Because paper mail addressed to the FTC is subject to delay due to heightened security screening, please consider submitting your comments in electronic form. Comments filed in electronic form should be submitted using the following weblink: (https:// ftcpublic.commentworks.com/ftc/ fcrarevisednotices) (and following the instructions on the web-based form). To ensure that the Commission considers an electronic comment, you must file it on the web-based form at the weblink (https://ftcpublic.commentworks.com/ ftc/fcrarevisednotices). If this Notice appears at (http://www.regulations.gov/ search/Regs/home.html#home), you may also file an electronic comment through that website. The Commission will consider all comments that regulations.gov forwards to it. You may also visit the FTC Website at (http:// 11 The comment must be accompanied by an explicit request for confidential treatment, including the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. The request will be granted or denied by the Commission’s General Counsel, consistent with applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR 4.9(c). PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 52657 www.ftc.gov) to read the Notice and the news release describing it. A comment filed in paper form should include the ‘‘FACTA Notices, Project No. P105408’’ reference both in the text and on the envelope, and should be mailed or delivered to the following address: Federal Trade Commission, Office of the Secretary, Room H-135 (Annex M), 600 Pennsylvania Avenue, NW, Washington, D.C. 20580. The FTC is requesting that any comment filed in paper form be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. The FTC Act and other laws that the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. The Commission will consider all timely and responsive public comments that it receives, whether filed in paper or electronic form. Comments received will be available to the public on the FTC website, to the extent practicable, at (http://www.ftc.gov/os/ publiccomments.shtm). As a matter of discretion, the FTC makes every effort to remove home contact information for individuals from the public comments it receives before placing those comments on the FTC website. More information, including routine uses permitted by the Privacy Act, may be found in the FTC’s privacy policy, at (http://www.ftc.gov/ ftc/privacy.htm). IV. Communications by Outside Parties to the Commissioners or Their Advisors Written communications and summaries or transcripts of oral communications respecting the merits of this proceeding from any outside party to any Commissioner or Commissioner’s advisor will be placed on the public record.12 V. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501-3521, the Commission reviewed the summary of rights and the furnisher and user notices for compliance with the PRA when it issued them in 1997 and when it revised them in 2004. At both times, the Commission concluded that the summary and notices consisted of information that is supplied by the Federal government. Accordingly, the Commission determined that these notices do not constitute a ‘‘collection of information’’ as this term is defined in the regulations implementing the PRA, 12 See E:\FR\FM\27AUP1.SGM 16 CFR 1.26(b)(5). 27AUP1 52658 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules nor do the financial resources expended in relation to the distribution of these documents constitute a paperwork burden. See 5 CFR 1320.3(c)(2). The Commission has reviewed the proposed changes to the current summary and notices. The Commission has concluded, consistent with its analyses in 1997 and 2004, that the proposed summary and notices do not fall within the definition of ‘‘collection of information’’ covered by the PRA because they are ‘‘[t]he public disclosure of information originally supplied by the Federal government to the recipient for the purpose of disclosure to the public * * *.’’ 5 CFR 1320.3(c)(2). WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS VI. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA), 5 U.S.C. 601—612, requires that the Commission provide an Initial Regulatory Flexibility Analysis (IRFA) with any action that may constitute a rule unless the Commission certifies that the action will not have a significant economic impact on a substantial number of small entities. See 5 U.S.C. 603—605. The Commission concludes that the proposed revised Summary of Rights, Furnisher Notice, and User Notice will not have a significant economic impact on a substantial number of small entities, as discussed below. Accordingly, this document serves as notice to the Small Business Administration of the agency’s certification of no effect. To ensure the accuracy of this certification, however, the Commission requests comment on whether the proposed revised summary or notices will have a significant impact on a substantial number of small entities, including specific information on the number of entities that will be covered by the proposed rules, the number of these entities that are small, and the average annual burden for each entity. To assist commenters, the Commission has prepared the following analysis: A. Description of the Reasons That Action by the Agency Is Being Taken The agency has undertaken this proceeding to implement provisions of the FCRA. Specifically, section 609(c) of the FCRA requires the Commission to prepare the Summary of Rights for consumers and section 607(d) requires the Commission to issue the Furnisher Notice and User Notice. All of these documents will be distributed by CRAs. B. The Proposal’s Objectives and Legal Basis The objective of the Commission’s action is the issuance of a proposed revised Summary of Rights, Furnisher VerDate Mar<15>2010 15:26 Aug 26, 2010 Jkt 220001 Notice, and User Notice to educate consumers, furnishers of information to CRAs, and users of information from CRAs as to their rights or duties under the FCRA. As noted earlier, the legal bases for the proposed summary and notices are sections 609(c) and 607(d) of the FCRA, respectively. C. Small Entities to Which the Proposed Rule Will Apply The proposed revised Summary of Rights, Furnisher Notice, and User Notice are to be distributed by CRAs. The consumer reporting industry is composed primarily of ‘‘nationwide’’ CRAs and ‘‘nationwide specialty’’ CRAs, as defined in FCRA sections 603(p) and 603(w), respectively. The Commission believes that the nationwide and nationwide specialty CRAs will be responsible for much of the distribution of the summary and notices. The Commission believes that none of the nationwide CRAs is a ‘‘small’’ entity.13 There are, however, small CRAs associated with the nationwide CRAs, and there are small, independent CRAs. Based on the membership of the major CRA trade associations, the Commission believes that the total universe of entities potentially covered by the requirement to distribute the summary and notices is between 600 and 1000. The Commission does not know how many of these entities are ‘‘small.’’ The Commission invites comments on the number of ‘‘small’’ entities that will be affected by its proposal. D. Projected Reporting, Recordkeeping, and Other Compliance Requirements The proposed rule would impose no specific reporting or recordkeeping requirements. CRAs will be required, however, to distribute the prescribed summary and notices. The Summary of Rights will be distributed with each consumer report provided to consumers by CRAs, and will be distributed to large numbers of consumers each year. The CRAs will need to distribute the revised Furnisher Notice and User Notice on a one-time basis to all of the entities that furnish information to a CRA or use information obtained from a CRA, even if they were previously sent a prior version of the notices. However, the Commission does not believe that this requirement will increase in any significant way the burdens already imposed by the FCRA on CRAs. Because 13 CRAs subject to the Commission’s jurisdiction with annual receipts of $7 million or less are considered small businesses. A list of the SBA’s size standards for all industries can be found at (http://www.sba.gov/idc/groups/public/documents/ sba_homepage/serv_sstd_tablepdf.pdf) (last visited June 25, 2010). PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 the Commission is providing the language for the summary and notices, businesses need not incur legal or other professional costs to develop any new written material. The cost of training employees, if any, should be minimal. Moreover, when the Furnisher Notice and User Notice are distributed electronically, the Commission believes the distribution costs will be negligible. E. Duplicative, Overlapping, or Conflicting Federal Rules The Commission has not identified any other federal statutes, rules, or policies that would duplicate, overlap, or conflict with the proposed summary or notices. The Commission invites comment and information on this issue. F. Significant Alternatives to the Proposed Rule In some situations, the Commission has considered adopting a delayed effective date for small entities subject to new regulation in order to provide them with additional time to come into compliance. In this case, however, the Commission proposes not to delay the effective date because small entities will be given the texts of the proposed summary and notices to be distributed and will not incur additional costs in developing them. The Commission seeks comment and information with regard to (1) the existence of small business entities for which distribution of the required Summary of Rights, Furnisher Notices, and User Notices would have a significant economic impact; and (2) suggested alternative methods of compliance that, consistent with the statutory requirements, would reduce the economic impact of the requirements of this proceeding on these entities. If the comments filed in response to this notice identify small entities that are significantly affected, as well as alternative methods of compliance that would reduce the economic impact on such entities, the Commission will consider the feasibility of such alternatives. List of Subjects in 16 CFR Part 698 Fair Credit Reporting Act, Consumer reports, Consumer reporting agencies, Credit, Trade practices. Accordingly, pursuant to 15 U.S.C. 1681e and 1681g, the Federal Trade Commission hereby proposes to amend Part 698, chapter 1, title 16, Code of Federal Regulations, as follows: 1. The authority citation for this part continues to read as follows: Authority: 15 U.S.C. 1681e, 1681g, 1681s, and 1681j; 117 Stat. 1952; Pub. L. 108–159, E:\FR\FM\27AUP1.SGM 27AUP1 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules sections 151, 153, 211(c) and (d), 213, and 311. 2. Revise Appendices F through H to read as follows: APPENDIX F TO PART 698–GENERAL SUMMARY OF CONSUMER RIGHTS WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS The prescribed form for this summary is a disclosure that is substantially similar to the VerDate Mar<15>2010 15:26 Aug 26, 2010 Jkt 220001 Commission’s model summary with all information clearly and prominently displayed. A separate list of federal regulators is available at the Commission’s website at (www.ftc.gov/credit). A summary should accurately reflect changes to those items that may change over time (e.g., dollar amounts or telephone numbers) to remain in compliance. Translations of this summary PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 52659 will be in compliance with the Commission’s model, provided that the translation is accurate and that it is provided in a language used by the recipient consumer. BILLING CODE 6750–01–S E:\FR\FM\27AUP1.SGM 27AUP1 VerDate Mar<15>2010 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 15:26 Aug 26, 2010 Jkt 220001 PO 00000 Frm 00009 Fmt 4702 Sfmt 4725 E:\FR\FM\27AUP1.SGM 27AUP1 EP27AU10.000 WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS 52660 VerDate Mar<15>2010 15:26 Aug 26, 2010 Jkt 220001 PO 00000 Frm 00010 Fmt 4702 Sfmt 4725 E:\FR\FM\27AUP1.SGM 27AUP1 52661 EP27AU10.001 WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules APPENDIX G TO PART 698–NOTICE OF FURNISHER RESPONSIBILITIES WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS The prescribed form for this disclosure is a separate document that is substantially VerDate Mar<15>2010 15:26 Aug 26, 2010 Jkt 220001 similar to the Commission’s model notice with all information clearly and prominently displayed. Consumer reporting agencies may limit the disclosure to only those items that PO 00000 Frm 00011 Fmt 4702 Sfmt 4725 they know are relevant to the furnisher that will receive the notice. E:\FR\FM\27AUP1.SGM 27AUP1 EP27AU10.002 52662 VerDate Mar<15>2010 15:26 Aug 26, 2010 Jkt 220001 PO 00000 Frm 00012 Fmt 4702 Sfmt 4725 E:\FR\FM\27AUP1.SGM 27AUP1 52663 EP27AU10.003 WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules VerDate Mar<15>2010 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 15:26 Aug 26, 2010 Jkt 220001 PO 00000 Frm 00013 Fmt 4702 Sfmt 4725 E:\FR\FM\27AUP1.SGM 27AUP1 EP27AU10.004 WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS 52664 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS The prescribed form for this disclosure is a separate document that is substantially VerDate Mar<15>2010 15:26 Aug 26, 2010 Jkt 220001 similar to the Commission’s notice with all information clearly and prominently displayed. Consumer reporting agencies may limit the disclosure to only those items that PO 00000 Frm 00014 Fmt 4702 Sfmt 4725 they know are relevant to the user that will receive the notice. E:\FR\FM\27AUP1.SGM 27AUP1 EP27AU10.005 APPENDIX H TO PART 698–NOTICE OF USER RESPONSIBILITIES 52665 VerDate Mar<15>2010 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 15:26 Aug 26, 2010 Jkt 220001 PO 00000 Frm 00015 Fmt 4702 Sfmt 4725 E:\FR\FM\27AUP1.SGM 27AUP1 EP27AU10.006 WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS 52666 VerDate Mar<15>2010 15:26 Aug 26, 2010 Jkt 220001 PO 00000 Frm 00016 Fmt 4702 Sfmt 4725 E:\FR\FM\27AUP1.SGM 27AUP1 52667 EP27AU10.007 WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules VerDate Mar<15>2010 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 15:26 Aug 26, 2010 Jkt 220001 PO 00000 Frm 00017 Fmt 4702 Sfmt 4725 E:\FR\FM\27AUP1.SGM 27AUP1 EP27AU10.008 WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS 52668 VerDate Mar<15>2010 15:26 Aug 26, 2010 Jkt 220001 PO 00000 Frm 00018 Fmt 4702 Sfmt 4725 E:\FR\FM\27AUP1.SGM 27AUP1 52669 EP27AU10.009 WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules VerDate Mar<15>2010 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 15:26 Aug 26, 2010 Jkt 220001 PO 00000 Frm 00019 Fmt 4702 Sfmt 9990 E:\FR\FM\27AUP1.SGM 27AUP1 EP27AU10.010 WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS 52670 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules By direction of the Commission. Donald S. Clark, Secretary [FR Doc. 2010–21202 Filed 8–26–10; 7:35 am] BILLING CODE 6750–01–C DEPARTMENT OF LABOR Employment and Training Administration 20 CFR Part 672 RIN 1205–AB49 YouthBuild Program Employment and Training Administration, Labor. ACTION: Notice of proposed rulemaking with request for comments. AGENCY: The Employment and Training Administration (ETA) of the U.S. Department of Labor (Department) is issuing this Notice of Proposed Rulemaking (NPRM) to implement the YouthBuild Transfer Act of 2006 (Transfer Act), which establishes the YouthBuild program in the Department under subtitle D of Title I of the Workforce Investment Act of 1998 (WIA) as amended. The proposed rule clarifies the requirements of the Transfer Act for YouthBuild program providers and participants. The proposed rule would set standards under which YouthBuild program providers would carry out the goals of the program, which are to assist at-risk youth in obtaining a High School diploma or GED and acquiring occupational skills training that leads to employment through the construction/ rehabilitation of housing for low-income or homeless individuals and families in the community. DATES: Interested persons are invited to submit comments on this proposed rule. To ensure consideration, comments must be received on or before October 26, 2010. ADDRESSES: You may submit comments, identified by Regulatory Information Number (RIN) 1205–AB49, by any one of the following methods: Federal e-Rulemaking Portal: http:// www.regulations.gov. Follow the Web site instructions for submitting comments. Mail and hand delivery/courier: Written comments, disk, and CD–ROM submissions may be mailed to Thomas M. Dowd, Administrator, Office of Policy Development and Research, U.S. Department of Labor, 200 Constitution Avenue, NW., Room N–5641, Washington, DC 20210. WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS SUMMARY: VerDate Mar<15>2010 17:32 Aug 26, 2010 Jkt 220001 The Department will not accept emailed or faxed comments. Instructions: Label all submissions with RIN 1205–AB49. Please submit your comment by only one method. Please be advised that the Department will post all comments received on http://www.regulations.gov without making any change to the comments, or redacting any information. The http:// www.regulations.gov Web site is the Federal e-rulemaking portal and all comments posted there are available and accessible to the public. Therefore, the Department recommends that commenters safeguard any personal information such as Social Security Numbers, personal addresses, telephone numbers, and e-mail addresses included in their comments as such information may become easily available to the public via the http:// www.regulations.gov Web site. It is the responsibility of the commenter to safeguard any such personal information. Also, please note that due to security concerns, postal mail delivery in Washington, DC may be delayed. Therefore, the Department encourages the public to submit comments on http://www.regulations.gov. Docket: All comments on this proposed rule will be available on the http://www.regulations.gov Web site and can be found using RIN 1205–AB49. The Department also will make all the comments it receives available for public inspection by appointment during normal business hours at the above address. If you need assistance to review the comments, the Department will provide you with appropriate aids such as readers or print magnifiers. The Department will make copies of the rule available, upon request, in large print, Braille and electronic file on computer disk. The Department will consider providing the rule in other formats upon request. To schedule an appointment to review the comments and/or obtain the rule in an alternative format, contact the Office of Policy Development and Research at (202) 693–3700 (this is not a toll-free number). You may also contact this office at the address listed. FOR FURTHER INFORMATION CONTACT: Thomas M. Dowd, Administrator, Office of Policy Development and Research, U.S. Department of Labor, 200 Constitution Avenue, NW., Room N– 5641, Washington, DC 20210; telephone (202) 693–3700 (this is not a toll-free number). Individuals with hearing or speech impairments may access the telephone number above via TTY by calling the PO 00000 Frm 00020 Fmt 4702 Sfmt 4702 52671 toll-free Federal Information Relay Service at (800) 877–8339. SUPPLEMENTARY INFORMATION: The Preamble of this proposed rule is organized as follows: I. Background—provides a brief description of the development of the proposed rule II. Section-by-Section Review of the Proposed Rule—summarizes and discusses the structure and requirements of the YouthBuild Program III. Administrative Section—sets forth the applicable regulatory requirements I. Background On September 22, 2006, the YouthBuild Transfer Act, Public Law 109–281 (Transfer Act) was signed into law. The Transfer Act authorizes grants for job training and educational activities for at-risk youth who, as part of their training, help construct or rehabilitate housing for homeless individuals and families and lowincome families in their respective communities. Participants receive a combination of classroom training, job skills development, and on-site training in the construction trades. The White House Task Force for Disadvantaged Youth recommended transferring the administration of the YouthBuild program, also known as ‘‘Hope for Youth’’, from the U.S. Department of Housing and Urban Development (HUD) to the Department. The White House Task Force for Disadvantaged Youth Final Report. Pg. 4, October 2003. The transfer allows for greater coordination of the YouthBuild program with Job Corps, WIA Youth Programs, the workforce investment system, including local workforce investment boards (WIBs), One-Stop Career Centers, and their partner programs (for example, Federal, State, and local education agencies), while at the same time retaining many of the same affordable housing goals as under the HUD program. The Transfer Act transfers the authority for the YouthBuild program from the Cranston-Gonzalez National Affordable Housing Act (49 U.S.C. 12899 et seq.) (Cranston-Gonzales Act) to subtitle D of Title I of WIA and it makes modifications and changes to the programs that focus on increasing the skilled workforce available for the construction trades. In addition to transferring the administration of the program from HUD to the Department, the Transfer Act expands the activities authorized under the YouthBuild program to include many activities authorized under the WIA Title I youth formula program. The transfer maintains all the goals of the YouthBuild program as E:\FR\FM\27AUP1.SGM 27AUP1

Agencies

[Federal Register Volume 75, Number 166 (Friday, August 27, 2010)]
[Proposed Rules]
[Pages 52655-52671]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21202]


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FEDERAL TRADE COMMISSION

16 CFR Part 698

RIN 3084-AA94


Summary of Rights and Notices of Duties Under the Fair Credit 
Reporting Act

AGENCY: Federal Trade Commission

ACTION: Proposed rule; request for comment.

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SUMMARY: Pursuant to its responsibilities under the Fair Credit 
Reporting Act, the Federal Trade Commission (Commission or FTC) is 
publishing for public comment revised versions of three documents: a 
summary of consumer rights, a notice of responsibilities for persons 
that furnish information to consumer reporting agencies, and a notice 
of responsibilities for persons that obtain consumer reports from 
consumer reporting agencies. The Commission is proposing the current 
revisions to incorporate changes in rights and obligations created by 
several new rules issued pursuant to the Fair and Accurate Credit 
Transactions Act of 2003. The Commission is also proposing revisions to 
improve the clarity and usefulness of the documents for consumers, 
furnishers, and users.

DATES: Comments must be received on or before September 21, 2010.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form by following the instructions in the 
SUPPLEMENTARY INFORMATION section below. Comments in electronic form 
should be submitted by using the following weblink: (https://ftcpublic.commentworks.com/ftc/fcrarevisednotices) (and following the 
instructions on the web-based form). Comments filed in paper form 
should be mailed or delivered to the following address: Federal Trade 
Commission, Office of the Secretary, Room H-135 (Annex M), 600 
Pennsylvania Avenue, NW, Washington, D.C. 20580, in the manner detailed 
in the SUPPLEMENTARY INFORMATION section below.

FOR FURTHER INFORMATION CONTACT: Pavneet Singh, Attorney, Division of 
Privacy and Identity Protection, Bureau of Consumer Protection, Federal 
Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580, 
(202) 326-2252.

SUPPLEMENTARY INFORMATION:

I. Background

    Under section 609(c) of the Fair Credit Reporting Act (FCRA), 
consumer reporting agencies (CRAs) are required to include a summary of 
consumer rights with every consumer report they provide to 
consumers.\1\ The Commission is required to provide a model summary of 
rights (Summary of Rights) to be used for this purpose. In addition, 
section 607(d)(2) of the FCRA requires the Commission to prescribe the 
content of notices that CRAs must provide to those who furnish 
information to them (Furnisher Notice) and to those who obtain consumer 
reports from them (User Notice).\2\
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    \1\ 15 U.S.C. 1681g(c). Under section 609(a) of the FCRA, 15 
U.S.C. 1681g(a), CRAs are required to disclose to consumers the 
information in their files upon request. CRAs generally refer to 
these disclosures as ``file disclosures'' and provide them in a 
different format than the consumer reports they provide to third 
parties. For purposes of this notice, the term ``consumer report'' 
includes a ``file disclosure'' from a CRA to a consumer.
    \2\ 15 U.S.C. 1681e(d).
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    The Commission originally issued these three documents in 1997.\3\ 
It issued revised versions in 2004\4\ to reflect changes made to the 
FCRA by the Fair and Accurate Credit Transactions Act of 2003 (FACT 
Act).\5\ Since then, the Commission and other financial regulators have 
finalized new rules under the FACT Act. The Commission is now proposing 
a newly revised Summary of Rights, User Notice, and

[[Page 52656]]

Furnisher Notice to reflect these new rules, as explained further 
below.\6\ The proposed revised versions are also intended to improve 
the clarity and usefulness of the documents for consumers, furnishers, 
and users. For comparison, the 2004 versions of these notices can be 
found at (www.ftc.gov/opa/2004/11/facta.shtm).
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    \3\ 62 FR 35586 (1997).
    \4\ 69 FR 69776 (2004).
    \5\ Pub. L. 108-159, 117 Stat. 1952 (2003).
    \6\ At this time, the Commission is not issuing a revised 
version of the identity theft rights summary required by section 
609(d) of the FCRA. The Commission is currently undertaking a survey 
of identity theft victims who contacted the FTC and expects that 
when completed, the results of that survey may influence any future 
revisions of the identity theft rights summary. See 73 FR 37457 
(2009).
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II. Summary of the Proposed Revised Notices

A. Summary of Rights (Appendix F to 16 CFR 698)

    Section 609(c) of the FCRA requires the Commission to issue a model 
Summary of Rights, which must include an explanation of (1) the 
consumer's right to obtain his or her consumer report; (2) the 
frequency and circumstances under which a consumer may receive free 
consumer reports under the FCRA; (3) the right of a consumer to dispute 
incorrect or outdated information in his or her consumer report; and 
(4) the right of a consumer to obtain a credit score.\7\
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    \7\ Section 609(c) also requires that CRAs notify consumers that 
they may have additional rights under state law and that the FCRA 
does not require accurate, current derogatory information to be 
removed from consumers' files. Thus, the Commission has also 
included this information in its Summary of Rights.
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    With respect to a consumer's right to dispute information in his or 
her consumer report, on July 1, 2009, the Commission and other federal 
regulatory agencies issued the Furnisher Direct Dispute Rule, which 
took effect on July 1, 2010. Prior to the effective date of this Rule, 
under the FCRA, consumers had a right to dispute the accuracy of 
information in their consumer reports only by filing a dispute with a 
CRA. Under the Furnisher Direct Dispute Rule, consumers may dispute the 
accuracy of information in their consumer report directly with the 
furnisher of that information as well as the CRA. The proposed revised 
Summary of Rights reflects this additional dispute right. Because it is 
difficult to inform consumers fully of their dispute rights in a 
summary fashion, the proposed revised Summary of Rights also directs 
consumers to the Commission's website for more information about 
disputing consumer report errors.\8\
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    \8\ The Commission is concurrently updating its consumer 
education materials on disputing errors in credit reports to reflect 
consumers' new right to dispute inaccurate information directly with 
furnishers.
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    In addition, the proposed revised Summary of Rights reflects 
changes to improve the clarity and readability of the document. The 
changes include reordering some of the information provided, as well as 
making formatting changes and minor wording changes to certain 
sections.
    Finally, in order to keep the Summary of Rights sufficiently brief 
and to improve its readability, the proposed revised Summary of Rights 
deletes certain information that the Commission is not required to 
include. The current Summary of Rights incorporates a list of Federal 
agencies responsible for enforcing the FCRA, which the CRAs are also 
required to provide to consumers with their consumer reports. However, 
the FCRA does not require this list to be included in the Summary of 
Rights. Accordingly, the Commission proposes not to include this 
information in the proposed revised Summary of Rights. Instead, the 
Commission proposes to make available on its website a separate 
document that lists the Federal agencies responsible for enforcing the 
FCRA, along with their addresses, phone numbers, and website addresses, 
which can be updated more easily. CRAs may use this document to satisfy 
their obligation to provide consumers a list of Federal agencies 
responsible for enforcing the FCRA.

B. Furnisher Notice (Appendix G to 16 CFR 698)

    The proposed revised Furnisher Notice reflects the new duties of 
furnishers set forth in the Furnisher Direct Dispute Rule described 
above. It also reflects new duties contained in the Furnisher Accuracy 
Rule, which became effective on July 1, 2010. The Rule requires 
furnishers to establish policies and procedures to ensure the accuracy 
and integrity of the consumer report information they furnish to CRAs, 
and to consider the guidelines prescribed by the agencies in 
establishing these policies and procedures. In addition, the proposed 
revised Furnisher Notice also includes revisions to improve the clarity 
and readability of the document.\9\
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    \9\ These revisions include deleting citation references to the 
relevant sections of the FCRA from the text of the Notice and 
placing them in endnotes to make the document easier to read.
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C. User Notice (Appendix H to 16 CFR 698)

    The proposed revised User Notice reflects the new duties of users 
set forth in several of the rules finalized pursuant to the FACT Act. 
First, effective January 1, 2011, the Risk-Based Pricing Rule will 
require users of consumer reports to provide risk-based pricing notices 
in certain circumstances if they extend credit to a particular consumer 
on less favorable terms than those they offer to others. As an 
alternative to providing risk-based pricing notices, the Rule permits 
such users to provide consumers who apply for credit with a free credit 
score and information about their credit score. Second, if a CRA 
notifies a user of consumer reports that the address the user provided 
about a consumer is different from the address in the consumer report, 
the Address Discrepancy Rule, which became effective on January 1, 
2008, requires the user to implement reasonable procedures to verify 
that the consumer report relates to the correct consumer. Users of 
consumer reports that verify the address is accurate, and that 
regularly furnish information to the CRA, have additional 
responsibilities under the Rule. Finally, the Medical Information 
Rules, which became effective on April 1, 2006, prescribe the 
circumstances under which creditors may obtain, use, and share medical 
information. The proposed revised User Notice has been revised to 
reflect all of these obligations, as well as to improve the clarity and 
readability of the document.\10\
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    \10\ As with the Furnisher Notice, these revisions include 
deleting citation references to the relevant sections of the FCRA 
from the text of the User Notice and placing them in endnotes.
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III. Request for Comments

    The Commission invites comment on all aspects of the proposed 
revised Summary of Rights, Furnisher Notice, and User Notice. The 
Commission also invites comment from all interested parties on the 
following issues:

Summary of Rights (Appendix F)

     Has the existing Summary of Rights been effective in 
informing consumers about their rights under the FCRA?
     Has the Commission included all of the rights that should 
be included in the model summary?
     Has the Commission clearly and sufficiently described a 
consumer's ability to dispute inaccurate consumer report information 
with both the furnisher of the information and with the CRA? Is it 
useful to provide a reference to the FTC's website for additional 
information about disputing such errors?
     Is it appropriate to provide information about the Federal 
agencies responsible for enforcing the FCRA and the contact information 
for these agencies in a separate document, which

[[Page 52657]]

will be made available on the FTC's website?
     Are there areas where the understandability of the 
proposed revised Summary of Rights could be improved? Are there any 
sections for which the language does not accurately convey the 
substance of the provision? If so, how could such sections be improved?
     The proposed revised Summary of Rights uses the term 
``credit report'' to describe a consumer report under the FCRA because 
the Commission believes it is the term with which consumers are most 
familiar. However, as explained in the proposed revised Summary of 
Rights, consumers may obtain reports that contain non-credit 
information, such as rental or medical history information. Should an 
additional or alternate term be used to describe these types of 
reports? Would it be more effective and is it feasible to create a 
separate model Summary of Rights to send to consumers who request 
reports that contain non-credit information?

Furnisher Notice (Appendix G)

     Is the proposed revised Furnisher Notice accurate and easy 
to understand? In what ways could it be improved?
     The Commission expects that the Furnisher Notice will be 
sent to a wide range of entities with varying degrees of legal 
sophistication. Are the duties set forth in the proposed notice clear 
and understandable? Could the description of the duties be improved?
     Does the deletion of the citations to the relevant 
sections of the FCRA from the text to the endnotes improve the 
readability of the document? Or are the citations necessary for 
furnishers to locate and understand their statutory obligations?

User Notice (Appendix H)

     The proposed revised User Notice discusses the principal 
portions of the FCRA that impose obligations upon those who receive 
consumer reports. Should additional information be included in the 
notice?
     The Commission expects that the User Notice will be sent 
to a wide range of users with varying degrees of legal sophistication. 
Are the duties set forth in the proposed notice clear and easy to 
understand? Could the description of the duties be improved?
     Does the deletion of the citations to the relevant 
sections of the FCRA from the text to the endnotes improve the 
readability of the document? Or are the citations necessary for users 
to locate and understand their statutory obligations?
    Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``FACTA 
Notices, Project No. P105408,'' to facilitate the organization of 
comments. Please note that your comment - including your name and your 
state - will be placed on the public record of this proceeding, 
including on the publicly accessible FTC website, at (http://www.ftc.gov/os/publiccomments.shtm).
    Because comments will be made public, they should not include any 
sensitive personal information, such as any individual's Social 
Security number; date of birth; driver's license number or other state 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. Comments also 
should not include any sensitive health information, such as medical 
records or other individually identifiable health information. In 
addition, comments should not include ``trade secret or any commercial 
or financial information which is obtained from any person and which is 
privileged or confidential'' as provided in Section 6(f) of the Federal 
Trade Commission Act (``FTC Act''), 15 U.S.C. 46(f), and FTC Rule 
4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing matter for which 
confidential treatment is requested must be filed in paper form, must 
be clearly labeled ``Confidential,'' and must comply with FTC Rule 
4.9(c).\11\
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    \11\ The comment must be accompanied by an explicit request for 
confidential treatment, including the factual and legal basis for 
the request, and must identify the specific portions of the comment 
to be withheld from the public record. The request will be granted 
or denied by the Commission's General Counsel, consistent with 
applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR 
4.9(c).
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    Because paper mail addressed to the FTC is subject to delay due to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted using the following weblink: (https://ftcpublic.commentworks.com/ftc/fcrarevisednotices) (and following the 
instructions on the web-based form). To ensure that the Commission 
considers an electronic comment, you must file it on the web-based form 
at the weblink (https://ftcpublic.commentworks.com/ftc/fcrarevisednotices). If this Notice appears at (http://www.regulations.gov/search/Regs/home.html#home), you may also file an 
electronic comment through that website. The Commission will consider 
all comments that regulations.gov forwards to it. You may also visit 
the FTC Website at (http://www.ftc.gov) to read the Notice and the news 
release describing it.
    A comment filed in paper form should include the ``FACTA Notices, 
Project No. P105408'' reference both in the text and on the envelope, 
and should be mailed or delivered to the following address: Federal 
Trade Commission, Office of the Secretary, Room H-135 (Annex M), 600 
Pennsylvania Avenue, NW, Washington, D.C. 20580. The FTC is requesting 
that any comment filed in paper form be sent by courier or overnight 
service, if possible, because U.S. postal mail in the Washington area 
and at the Commission is subject to delay due to heightened security 
precautions.
    The FTC Act and other laws that the Commission administers permit 
the collection of public comments to consider and use in this 
proceeding as appropriate. The Commission will consider all timely and 
responsive public comments that it receives, whether filed in paper or 
electronic form. Comments received will be available to the public on 
the FTC website, to the extent practicable, at (http://www.ftc.gov/os/publiccomments.shtm). As a matter of discretion, the FTC makes every 
effort to remove home contact information for individuals from the 
public comments it receives before placing those comments on the FTC 
website. More information, including routine uses permitted by the 
Privacy Act, may be found in the FTC's privacy policy, at (http://www.ftc.gov/ftc/privacy.htm).

IV. Communications by Outside Parties to the Commissioners or Their 
Advisors

    Written communications and summaries or transcripts of oral 
communications respecting the merits of this proceeding from any 
outside party to any Commissioner or Commissioner's advisor will be 
placed on the public record.\12\
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    \12\ See 16 CFR 1.26(b)(5).
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V. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (PRA), 44 
U.S.C. 3501-3521, the Commission reviewed the summary of rights and the 
furnisher and user notices for compliance with the PRA when it issued 
them in 1997 and when it revised them in 2004. At both times, the 
Commission concluded that the summary and notices consisted of 
information that is supplied by the Federal government. Accordingly, 
the Commission determined that these notices do not constitute a 
``collection of information'' as this term is defined in the 
regulations implementing the PRA,

[[Page 52658]]

nor do the financial resources expended in relation to the distribution 
of these documents constitute a paperwork burden. See 5 CFR 
1320.3(c)(2). The Commission has reviewed the proposed changes to the 
current summary and notices. The Commission has concluded, consistent 
with its analyses in 1997 and 2004, that the proposed summary and 
notices do not fall within the definition of ``collection of 
information'' covered by the PRA because they are ``[t]he public 
disclosure of information originally supplied by the Federal government 
to the recipient for the purpose of disclosure to the public * * *.'' 5 
CFR 1320.3(c)(2).

VI. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601--612, requires 
that the Commission provide an Initial Regulatory Flexibility Analysis 
(IRFA) with any action that may constitute a rule unless the Commission 
certifies that the action will not have a significant economic impact 
on a substantial number of small entities. See 5 U.S.C. 603--605. The 
Commission concludes that the proposed revised Summary of Rights, 
Furnisher Notice, and User Notice will not have a significant economic 
impact on a substantial number of small entities, as discussed below. 
Accordingly, this document serves as notice to the Small Business 
Administration of the agency's certification of no effect. To ensure 
the accuracy of this certification, however, the Commission requests 
comment on whether the proposed revised summary or notices will have a 
significant impact on a substantial number of small entities, including 
specific information on the number of entities that will be covered by 
the proposed rules, the number of these entities that are small, and 
the average annual burden for each entity. To assist commenters, the 
Commission has prepared the following analysis:

A. Description of the Reasons That Action by the Agency Is Being Taken

    The agency has undertaken this proceeding to implement provisions 
of the FCRA. Specifically, section 609(c) of the FCRA requires the 
Commission to prepare the Summary of Rights for consumers and section 
607(d) requires the Commission to issue the Furnisher Notice and User 
Notice. All of these documents will be distributed by CRAs.

B. The Proposal's Objectives and Legal Basis

    The objective of the Commission's action is the issuance of a 
proposed revised Summary of Rights, Furnisher Notice, and User Notice 
to educate consumers, furnishers of information to CRAs, and users of 
information from CRAs as to their rights or duties under the FCRA. As 
noted earlier, the legal bases for the proposed summary and notices are 
sections 609(c) and 607(d) of the FCRA, respectively.

C. Small Entities to Which the Proposed Rule Will Apply

    The proposed revised Summary of Rights, Furnisher Notice, and User 
Notice are to be distributed by CRAs. The consumer reporting industry 
is composed primarily of ``nationwide'' CRAs and ``nationwide 
specialty'' CRAs, as defined in FCRA sections 603(p) and 603(w), 
respectively. The Commission believes that the nationwide and 
nationwide specialty CRAs will be responsible for much of the 
distribution of the summary and notices. The Commission believes that 
none of the nationwide CRAs is a ``small'' entity.\13\ There are, 
however, small CRAs associated with the nationwide CRAs, and there are 
small, independent CRAs. Based on the membership of the major CRA trade 
associations, the Commission believes that the total universe of 
entities potentially covered by the requirement to distribute the 
summary and notices is between 600 and 1000. The Commission does not 
know how many of these entities are ``small.'' The Commission invites 
comments on the number of ``small'' entities that will be affected by 
its proposal.
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    \13\ CRAs subject to the Commission's jurisdiction with annual 
receipts of $7 million or less are considered small businesses. A 
list of the SBA's size standards for all industries can be found at 
(http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf) (last visited June 25, 2010).
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D. Projected Reporting, Recordkeeping, and Other Compliance 
Requirements

    The proposed rule would impose no specific reporting or 
recordkeeping requirements. CRAs will be required, however, to 
distribute the prescribed summary and notices. The Summary of Rights 
will be distributed with each consumer report provided to consumers by 
CRAs, and will be distributed to large numbers of consumers each year. 
The CRAs will need to distribute the revised Furnisher Notice and User 
Notice on a one-time basis to all of the entities that furnish 
information to a CRA or use information obtained from a CRA, even if 
they were previously sent a prior version of the notices. However, the 
Commission does not believe that this requirement will increase in any 
significant way the burdens already imposed by the FCRA on CRAs. 
Because the Commission is providing the language for the summary and 
notices, businesses need not incur legal or other professional costs to 
develop any new written material. The cost of training employees, if 
any, should be minimal. Moreover, when the Furnisher Notice and User 
Notice are distributed electronically, the Commission believes the 
distribution costs will be negligible.

E. Duplicative, Overlapping, or Conflicting Federal Rules

    The Commission has not identified any other federal statutes, 
rules, or policies that would duplicate, overlap, or conflict with the 
proposed summary or notices. The Commission invites comment and 
information on this issue.

F. Significant Alternatives to the Proposed Rule

    In some situations, the Commission has considered adopting a 
delayed effective date for small entities subject to new regulation in 
order to provide them with additional time to come into compliance. In 
this case, however, the Commission proposes not to delay the effective 
date because small entities will be given the texts of the proposed 
summary and notices to be distributed and will not incur additional 
costs in developing them.
    The Commission seeks comment and information with regard to (1) the 
existence of small business entities for which distribution of the 
required Summary of Rights, Furnisher Notices, and User Notices would 
have a significant economic impact; and (2) suggested alternative 
methods of compliance that, consistent with the statutory requirements, 
would reduce the economic impact of the requirements of this proceeding 
on these entities. If the comments filed in response to this notice 
identify small entities that are significantly affected, as well as 
alternative methods of compliance that would reduce the economic impact 
on such entities, the Commission will consider the feasibility of such 
alternatives.

List of Subjects in 16 CFR Part 698

    Fair Credit Reporting Act, Consumer reports, Consumer reporting 
agencies, Credit, Trade practices.
    Accordingly, pursuant to 15 U.S.C. 1681e and 1681g, the Federal 
Trade Commission hereby proposes to amend Part 698, chapter 1, title 
16, Code of Federal Regulations, as follows:
    1. The authority citation for this part continues to read as 
follows:

    Authority: 15 U.S.C. 1681e, 1681g, 1681s, and 1681j; 117 Stat. 
1952; Pub. L. 108-159,

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sections 151, 153, 211(c) and (d), 213, and 311.
    2. Revise Appendices F through H to read as follows:

APPENDIX F TO PART 698-GENERAL SUMMARY OF CONSUMER RIGHTS

    The prescribed form for this summary is a disclosure that is 
substantially similar to the Commission's model summary with all 
information clearly and prominently displayed. A separate list of 
federal regulators is available at the Commission's website at 
(www.ftc.gov/credit). A summary should accurately reflect changes to 
those items that may change over time (e.g., dollar amounts or 
telephone numbers) to remain in compliance. Translations of this 
summary will be in compliance with the Commission's model, provided 
that the translation is accurate and that it is provided in a 
language used by the recipient consumer.
BILLING CODE 6750-01-S

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APPENDIX G TO PART 698-NOTICE OF FURNISHER RESPONSIBILITIES

    The prescribed form for this disclosure is a separate document 
that is substantially similar to the Commission's model notice with 
all information clearly and prominently displayed. Consumer 
reporting agencies may limit the disclosure to only those items that 
they know are relevant to the furnisher that will receive the 
notice.
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APPENDIX H TO PART 698-NOTICE OF USER RESPONSIBILITIES

    The prescribed form for this disclosure is a separate document 
that is substantially similar to the Commission's notice with all 
information clearly and prominently displayed. Consumer reporting 
agencies may limit the disclosure to only those items that they know 
are relevant to the user that will receive the notice.
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    By direction of the Commission.

Donald S. Clark,
Secretary

[FR Doc. 2010-21202 Filed 8-26-10; 7:35 am]
BILLING CODE 6750-01-C