81 FR 5992 - Compliance Bulletin-The FCRA's Requirement That Furnishers Establish and Implement Reasonable Written Policies and Procedures Regarding the Accuracy and Integrity of Information Furnished to All Consumer Reporting Agencies
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 81, Issue 23 (February 4, 2016)
Federal Register Volume 81, Issue 23 (February 4, 2016)
| Page Range | 5992-5992 | |
| FR Document | 2016-01987 |
[Federal Register Volume 81, Number 23 (Thursday, February 4, 2016)] [Notices] [Page 5992] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-01987] [[Page 5992]] ======================================================================= ----------------------------------------------------------------------- BUREAU OF CONSUMER FINANCIAL PROTECTION Compliance Bulletin--The FCRA's Requirement That Furnishers Establish and Implement Reasonable Written Policies and Procedures Regarding the Accuracy and Integrity of Information Furnished to All Consumer Reporting Agencies AGENCY: Bureau of Consumer Financial Protection. ACTION: Compliance bulletin. ----------------------------------------------------------------------- SUMMARY: This document highlights existing obligations under the Fair Credit Reporting Act (FCRA) for furnishers of consumer information to consumer reporting agencies (CRAs) to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information furnished to all CRAs. In recent reviews of the furnishing practices of financial institutions, the Consumer Financial Protection Bureau (CFPB or Bureau) found that some financial institutions are not compliant with their obligations with regard to furnishing to specialty CRAs, including the furnishing of deposit account information. An institution's relevant policies and procedures must encompass the institution's furnishing to all types of CRAs. The CFPB will continue to monitor furnishers' compliance with these obligations to ensure they meet their accuracy and integrity obligations for any information that they furnish. DATES: The Bureau released this Compliance Bulletin on its Web site on February 3, 2016. FOR FURTHER INFORMATION CONTACT: Anthony Rodriguez, Attorney, 202-435- 9726; or Laurie Sellick, Attorney, 202-435-7262, Office of Supervision Policy. SUPPLEMENTARY INFORMATION: I. Compliance Bulletin The CFPB issues this bulletin to emphasize the obligation of furnishers \1\ under Regulation V to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information relating to consumers that they furnish to CRAs. This obligation, which has been required under Regulation V since July 2010,\2\ applies to furnishing to all CRAs, including furnishing to specialty CRAs, such as the furnishing of deposit account information to CRAs. Furnishers must have policies and procedures that meet this requirement with respect to all CRAs to which they furnish. --------------------------------------------------------------------------- \1\ 12 CFR 1022.41(c). \2\ See 74 FR 31484 (July 1, 2009). Although promulgated in July 2009, the rule provided furnishers one year's notice of this obligation before the rule became effective on July 1, 2010. --------------------------------------------------------------------------- The supervisory experience of the Bureau suggests that some financial institutions are not compliant with their obligations under Regulation V with regard to furnishing to specialty CRAs. Furnishers' establishment and implementation of reasonable policies and procedures regarding the accuracy and integrity of information are essential components of a fair and accurate credit reporting system. Such policies and procedures protect against the furnishing of inaccurate information that could potentially cause adverse consequences for consumers when included in a credit report, such as being denied a loan at a more favorable interest rate or being unable to open a transaction account. While furnisher obligations under Regulation V are the focus of this bulletin, the CFPB recognizes that both furnishers and CRAs have independent obligations under the FCRA related to the accuracy of information and to the investigation of consumer disputes. The CFPB expects both furnishers and CRAs to comply with their respective duties. Furnishers must establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information relating to consumers that they furnish to CRAs.\3\ These policies and procedures must be appropriate to the nature, size, complexity, and scope of each furnisher's activities.\4\ When creating these policies and procedures, furnishers must consider the factors listed in the ``Interagency Guidelines Concerning the Accuracy and Integrity of Information Furnished to Consumer Reporting Agencies'' and incorporate those guidelines that are appropriate.\5\ Additionally, each furnisher must periodically review and update its policies and procedures to ensure their continued effectiveness.\6\ --------------------------------------------------------------------------- \3\ 15 U.S.C. 1681s-2(e); 12 CFR 1022.42(a). \4\ 12 CFR 1022.42(a). \5\ 12 CFR 1022.42(b). The guidelines are codified in Appendix E to Regulation V, 12 CFR part 1022. \6\ 12 CFR 1022.42(c). --------------------------------------------------------------------------- These policies and procedures must encompass the institution's furnishing to all types of CRAs. For example, if an institution furnishes both credit information to nationwide CRAs and deposit account information to nationwide specialty CRAs, that institution must consider the appropriate approach to each type of furnishing in its policies and procedures in order to comply with Regulation V.\7\ The type, frequency, and nature of the information furnished to CRAs can vary significantly. There also may be significant differences in the reporting formats and codes used to furnish to these agencies. An institution's obligation to have ``reasonable written policies and procedures'' applies to all types of information relating to consumers furnished to each of the CRAs to which it furnishes. --------------------------------------------------------------------------- \7\ See 12 CFR part 1022, Appendix E, Sec. I(a). --------------------------------------------------------------------------- The CFPB will continue to monitor furnishers' compliance with the Regulation V requirement to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of all furnished information. Furnishers must ensure that they have such policies and procedures in place with respect to all information furnished. If the CFPB determines that a furnisher has engaged in any acts or practices that violate Regulation V or other federal consumer financial laws and regulations, it will take appropriate supervisory and enforcement actions to address violations and seek all appropriate remedial measures, including redress to consumers. II. Regulatory Requirements This Compliance Bulletin summarizes existing requirements under the law and findings made in the course of exercising the Bureau's supervisory and enforcement authority, and is a non-binding general statement of policy articulating considerations relevant to the Bureau's exercise of its supervisory and enforcement authority. It is therefore exempt from notice and comment rulemaking requirements under the Administrative Procedure Act pursuant to 5 U.S.C. 553(b). Because no notice of proposed rulemaking is required, the Regulatory Flexibility Act does not require an initial or final regulatory flexibility analysis. 5 U.S.C. 603(a), 604(a). The Bureau has determined that this Compliance Bulletin does not impose any new or revise any existing recordkeeping, reporting, or disclosure requirements on covered entities or members of the public that would be collections of information requiring OMB approval under the Paperwork Reduction Act, 44 U.S.C. 3501, et seq. Dated: January 27, 2016. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2016-01987 Filed 2-3-16; 8:45 am] BILLING CODE 4810-25-P
![5992 Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Notices
BUREAU OF CONSUMER FINANCIAL Furnishers must have policies and in order to comply with Regulation V.7
PROTECTION procedures that meet this requirement The type, frequency, and nature of the
with respect to all CRAs to which they information furnished to CRAs can vary
Compliance Bulletin—The FCRA’s furnish. significantly. There also may be
Requirement That Furnishers Establish The supervisory experience of the significant differences in the reporting
and Implement Reasonable Written Bureau suggests that some financial formats and codes used to furnish to
Policies and Procedures Regarding the institutions are not compliant with their these agencies. An institution’s
Accuracy and Integrity of Information obligations under Regulation V with obligation to have ‘‘reasonable written
Furnished to All Consumer Reporting regard to furnishing to specialty CRAs. policies and procedures’’ applies to all
Agencies Furnishers’ establishment and types of information relating to
AGENCY: Bureau of Consumer Financial implementation of reasonable policies consumers furnished to each of the
Protection. and procedures regarding the accuracy CRAs to which it furnishes.
and integrity of information are The CFPB will continue to monitor
ACTION: Compliance bulletin.
essential components of a fair and furnishers’ compliance with the
SUMMARY: This document highlights accurate credit reporting system. Such Regulation V requirement to establish
existing obligations under the Fair policies and procedures protect against and implement reasonable written
Credit Reporting Act (FCRA) for the furnishing of inaccurate information policies and procedures regarding the
furnishers of consumer information to that could potentially cause adverse accuracy and integrity of all furnished
consumer reporting agencies (CRAs) to consequences for consumers when information. Furnishers must ensure
establish and implement reasonable included in a credit report, such as that they have such policies and
written policies and procedures being denied a loan at a more favorable procedures in place with respect to all
regarding the accuracy and integrity of interest rate or being unable to open a information furnished. If the CFPB
information furnished to all CRAs. In transaction account. determines that a furnisher has engaged
recent reviews of the furnishing While furnisher obligations under in any acts or practices that violate
practices of financial institutions, the Regulation V are the focus of this Regulation V or other federal consumer
Consumer Financial Protection Bureau bulletin, the CFPB recognizes that both financial laws and regulations, it will
(CFPB or Bureau) found that some furnishers and CRAs have independent take appropriate supervisory and
financial institutions are not compliant obligations under the FCRA related to enforcement actions to address
with their obligations with regard to the accuracy of information and to the violations and seek all appropriate
furnishing to specialty CRAs, including investigation of consumer disputes. The remedial measures, including redress to
the furnishing of deposit account CFPB expects both furnishers and CRAs consumers.
information. An institution’s relevant to comply with their respective duties. II. Regulatory Requirements
policies and procedures must
encompass the institution’s furnishing Furnishers must establish and This Compliance Bulletin summarizes
to all types of CRAs. implement reasonable written policies existing requirements under the law and
The CFPB will continue to monitor and procedures regarding the accuracy findings made in the course of
furnishers’ compliance with these and integrity of information relating to exercising the Bureau’s supervisory and
obligations to ensure they meet their consumers that they furnish to CRAs.3 enforcement authority, and is a non-
accuracy and integrity obligations for These policies and procedures must be binding general statement of policy
any information that they furnish. appropriate to the nature, size, articulating considerations relevant to
complexity, and scope of each the Bureau’s exercise of its supervisory
DATES: The Bureau released this
furnisher’s activities.4 When creating and enforcement authority. It is
Compliance Bulletin on its Web site on
these policies and procedures, therefore exempt from notice and
February 3, 2016.
furnishers must consider the factors comment rulemaking requirements
FOR FURTHER INFORMATION CONTACT:
listed in the ‘‘Interagency Guidelines under the Administrative Procedure Act
Anthony Rodriguez, Attorney, 202–435– Concerning the Accuracy and Integrity
9726; or Laurie Sellick, Attorney, 202– pursuant to 5 U.S.C. 553(b). Because no
of Information Furnished to Consumer notice of proposed rulemaking is
435–7262, Office of Supervision Policy. Reporting Agencies’’ and incorporate
SUPPLEMENTARY INFORMATION:
required, the Regulatory Flexibility Act
those guidelines that are appropriate.5 does not require an initial or final
I. Compliance Bulletin Additionally, each furnisher must regulatory flexibility analysis. 5 U.S.C.
periodically review and update its 603(a), 604(a). The Bureau has
The CFPB issues this bulletin to
policies and procedures to ensure their determined that this Compliance
emphasize the obligation of furnishers 1
continued effectiveness.6 Bulletin does not impose any new or
under Regulation V to establish and
implement reasonable written policies These policies and procedures must revise any existing recordkeeping,
and procedures regarding the accuracy encompass the institution’s furnishing reporting, or disclosure requirements on
and integrity of information relating to to all types of CRAs. For example, if an covered entities or members of the
consumers that they furnish to CRAs. institution furnishes both credit public that would be collections of
This obligation, which has been information to nationwide CRAs and information requiring OMB approval
required under Regulation V since July deposit account information to under the Paperwork Reduction Act, 44
2010,2 applies to furnishing to all CRAs, nationwide specialty CRAs, that U.S.C. 3501, et seq.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
including furnishing to specialty CRAs, institution must consider the Dated: January 27, 2016.
such as the furnishing of deposit appropriate approach to each type of
Richard Cordray,
account information to CRAs. furnishing in its policies and procedures
Director, Bureau of Consumer Financial
Protection.
1 12 3 15 U.S.C. 1681s–2(e); 12 CFR 1022.42(a).
CFR 1022.41(c). [FR Doc. 2016–01987 Filed 2–3–16; 8:45 am]
2 See 4 12 CFR 1022.42(a).
74 FR 31484 (July 1, 2009). Although
5 12 CFR 1022.42(b). The guidelines are codified BILLING CODE 4810–25–P
promulgated in July 2009, the rule provided
furnishers one year’s notice of this obligation before in Appendix E to Regulation V, 12 CFR part 1022.
the rule became effective on July 1, 2010. 6 12 CFR 1022.42(c). 7 See 12 CFR part 1022, Appendix E, § I(a).
VerDate Sep<11>2014 17:21 Feb 03, 2016 Jkt 238001 PO 00000 Frm 00012 Fmt 4703 Sfmt 9990 E:\FR\FM\04FEN1.SGM 04FEN1](https://thefederalregister.org/doc/81_FR_6015/page/1.svg)
Document Created: 2016-02-04 00:31:38
Document Modified: 2016-02-04 00:31:38
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Compliance bulletin. | |
| Dates | The Bureau released this Compliance Bulletin on its Web site on February 3, 2016. | |
| Contact | Anthony Rodriguez, Attorney, 202-435- 9726; or Laurie Sellick, Attorney, 202-435-7262, Office of Supervision Policy. | |
| FR Citation | 81 FR 5992 |
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