CFPB updates FCRA model disclosures

This story appeared in Bank Digest.                                     

The Consumer Financial Protection Bureau has issued an interim final rule updating two model disclosures to reflect changes made to the Fair Credit Reporting Act by the Economic Growth, Regulatory Relief, and Consumer Protection Act. The Act requires nationwide consumer reporting agencies to provide national security freezes free of charge to consumers. The Act also requires that whenever the FCRA requires a consumer to receive either the Summary of Consumer Rights or the Summary of Consumer Identity Theft Rights, a notice regarding the new security freeze right also must be included. 

The FCRA requires the Bureau to write model forms of these documents, and the Bureau's interim final rule updates its model forms to incorporate the new required notice. The updated model forms also incorporate a requirement of the EGRRCPA that extends from 90 days to one year the minimum time that nationwide consumer reporting agencies must include an initial fraud alert in a consumer's file. 

The interim final rule is effective Sept. 21, 2018, and comments must be received within 60 days of its publication in the Federal Register.