Fair Credit Reporting Act Disclosures, 65280-65281 [2019-25695]

Agencies

• BUREAU OF CONSUMER FINANCIAL PROTECTION

[Federal Register Volume 84, Number 229 (Wednesday, November 27, 2019)]
[Rules and Regulations]
[Pages 65280-65281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25695]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1022


Fair Credit Reporting Act Disclosures

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule; official interpretation.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
issuing this final rule amending an appendix for Regulation V, which 
implements the Fair Credit Reporting Act (FCRA). The Bureau is required 
to calculate annually the dollar amount of the maximum allowable charge 
for disclosures by a consumer reporting agency to a consumer pursuant 
to FCRA Section 609; this final rule establishes the maximum allowable 
charge for the 2020 calendar year.

DATES: This final rule is effective January 1, 2020.

FOR FURTHER INFORMATION CONTACT: Rachel Ross, Attorney-Advisor; Kristen 
Phinnessee, Senior Counsel, Office of Regulations, at (202) 435-7700. 
If you require this document in an alternative electronic format, 
please contact [email protected].

SUPPLEMENTARY INFORMATION: The Bureau is amending appendix O for 
Regulation V, which implements the FCRA, to establish the maximum 
allowable charge for disclosures by a consumer reporting agency to a 
consumer for 2020. The maximum allowable charge will remain at $12.50 
for 2020.

I. Background

    Under section 609 of the FCRA, a consumer reporting agency must, 
upon a consumer's request, disclose to the consumer information in the 
consumer's file.\1\ Section 612(a) of the FCRA gives consumers the 
right to a free file disclosure upon request once every 12 months from 
the nationwide consumer reporting agencies and nationwide specialty 
consumer reporting agencies.\2\ Section 612 of the FCRA also gives 
consumers the right to a free file disclosure under certain other, 
specified circumstances.\3\ Where the consumer is not entitled to a 
free file disclosure, section 612(f)(1)(A) of the FCRA provides that a 
consumer reporting agency may impose a reasonable charge on a consumer 
for making a file disclosure. Section 612(f)(1)(A) of the FCRA provides 
that the charge for such a disclosure shall not exceed $8.00 and shall 
be indicated to the consumer before making the file disclosure.\4\
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    \1\ 15 U.S.C. 1681g.
    \2\ 15 U.S.C. 1681j(a).
    \3\ 15 U.S.C. 1681j(b)-(d). The maximum allowable charge 
announced by the Bureau does not apply to requests made under 
section 612(a)-(d) of the FCRA. The charge does apply when a 
consumer who orders a file disclosure has already received a free 
annual file disclosure and does not otherwise qualify for an 
additional free file disclosure.
    \4\ 15 U.S.C. 1681j(f)(1)(A).
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    Section 612(f)(2) of the FCRA also states that the $8.00 maximum 
amount shall increase on January 1 of each year, based proportionally 
on changes in the Consumer Price Index, with fractional changes rounded 
to the nearest fifty cents.\5\ Such increases are based on the Consumer 
Price Index for All Urban Consumers (CPI-U), which is the most general 
Consumer Price Index and covers all urban consumers and all items.
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    \5\ 15 U.S.C. 1681j(f)(2).
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II. Adjustment

    For 2020, the ceiling on allowable charges under section 612(f) of 
the FCRA will be $12.50, unchanged from 2019. The Bureau is using the 
$8.00 amount set forth in section 612(f)(1)(A)(i) of the FCRA as the 
baseline for its calculation of the increase in the ceiling on 
reasonable charges for certain disclosures made under section 609 of 
the FCRA. Since the effective date of section 612(a) was September 30, 
1997, the Bureau calculated the proportional increase in the CPI-U from 
September 1997 to September 2019. The Bureau then determined what 
modification, if any, from the original base of $8.00 should be made 
effective for 2020, given the requirement that fractional changes be 
rounded to the nearest fifty cents.
    Between September 1997 and September 2019, the CPI-U increased by 
59.28 percent from an index value of 161.2 in September 1997 to a value 
of 256.759 in September 2019. An increase of 59.28 percent in the $8.00 
base figure would lead to a figure of $12.74. However, because the 
statute directs that the resulting figure be rounded to the nearest 
$0.50, the maximum allowable charge is $12.50. The Bureau therefore 
determines that the maximum allowable charge for the year 2020 will 
remain at $12.50.

III. Procedural Requirements

A. Administrative Procedure Act

    Under the Administrative Procedure Act, notice and opportunity for 
public comment are not required if the Bureau finds that notice and 
public comment are impracticable, unnecessary, or contrary to the 
public interest.\6\ Pursuant to this final rule, in Regulation V, 
appendix O, is amended to update the maximum allowable charge for 2020 
under section 612(f). The amendments in this final rule are technical 
and non-discretionary, as they merely apply the method previously 
established in Regulation V for determining adjustments to the 
thresholds. For these reasons, the Bureau has determined that 
publishing a notice of proposed rulemaking and providing opportunity 
for public comment are unnecessary. The amendments therefore are 
adopted in final form.
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    \6\ 5 U.S.C. 553(b)(B).

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[[Page 65281]]

B. Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required, the 
Regulatory Flexibility Act does not require an initial or final 
regulatory flexibility analysis.\7\
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    \7\ 5 U.S.C. 603(a), 604(a).
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C. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995,\8\ the 
Bureau reviewed this final rule. No collections of information pursuant 
to the Paperwork Reduction Act are contained in the final rule.
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    \8\ 44 U.S.C. 3506; 5 CFR part 1320.
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D. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Bureau will submit a report containing this rule and other required 
information to the United States Senate, the United States House of 
Representatives, and the Comptroller General of the United States prior 
to the rule taking effect. The Office of Information and Regulatory 
Affairs (OIRA) has designated this rule as not a ``major rule'' as 
defined by 5 U.S.C. 804(2).

List of Subjects in 12 CFR Part 1022

    Banks, Banking, Consumer protection, Credit unions, Fair Credit 
Reporting Act, Holding companies, National banks, Privacy, Reporting 
and recordkeeping requirements, Savings associations, State member 
banks.

Authority and Issuance

    For the reasons set forth in the preamble, the Bureau amends 
Regulation V, 12 CFR part 1022, as set forth below:

PART 1022--FAIR CREDIT REPORTING (REGULATION V)

0
1. The authority citation for part 1022 continues to read as follows:

    Authority:  12 U.S.C. 5512, 5581; 15 U.S.C. 1681a, 1681b, 1681c, 
1681c-1, 1681e, 1681g, 1681i, 1681j, 1681m, 1681s, 1681s-2, 1681s-3, 
and 1681t; Sec. 214, Public Law 108-159, 117 Stat. 1952.


0
2. Appendix O is revised to read as follows:

Appendix O to Part 1022--Reasonable Charges for Certain Disclosures

    Section 612(f) of the FCRA, 15 U.S.C. 1681j(f), directs the 
Bureau to increase the maximum allowable charge a consumer reporting 
agency may impose for making a disclosure to the consumer pursuant 
to section 609 of the FCRA, 15 U.S.C. 1681g, on January 1 of each 
year, based proportionally on changes in the Consumer Price Index, 
with fractional changes rounded to the nearest fifty cents. The 
Bureau will publish notice of the maximum allowable charge each year 
by amending this appendix. For calendar year 2020, the maximum 
allowable charge is $12.50. For historical purposes:
    1. For calendar year 2012, the maximum allowable disclosure 
charge was $11.50.
    2. For calendar year 2013, the maximum allowable disclosure 
charge was $11.50.
    3. For calendar year 2014, the maximum allowable disclosure 
charge was $11.50.
    4. For calendar year 2015, the maximum allowable disclosure 
charge was $12.00.
    5. For calendar year 2016, the maximum allowable disclosure 
charge was $12.00.
    6. For calendar year 2017, the maximum allowable disclosure 
charge was $12.00.
    7. For calendar year 2018, the maximum allowable disclosure 
charge was $12.00.
    8. For calendar year 2019, the maximum allowable disclosure 
charge was $12.50.
    9. For calendar year 2020, the maximum allowable disclosure 
charge is $12.50.

    Dated: November 20, 2019.
Thomas Pahl,
Policy Associate Director, Bureau of Consumer Financial Protection.
[FR Doc. 2019-25695 Filed 11-26-19; 8:45 am]
BILLING CODE 4810-AM-P