Credit Checks

Federal Trade Commission Issues New Guidance on the Fair Credit Reporting Act

Written by Michael Klazema | Jul 21, 2011 4:00:00 AM

 

In 1990, the FTC issued a commentary on the FCRA (published as an appendix to 16 CFR part 600). Between 1997 and 2001, it issued informal opinion letters in response to selected questions that it received. Changes to the FCRA, primarily in 1996 and 2003, rendered much of the prior commentary obsolete. The new guidance reflects the FTC’s most up-to-date guidance.

Additionally, the FTC has formally withdrawn its prior commentary. In a press release, the FTC notes that the reason for this is that the recent financial reform legislation transferred the FTC’s authority to issue this kind of guidance to the newly created Consumer Financial Protection Bureau.

The FTC says that the new guidance mostly codifies its prior positions, but that it modifies some of its prior interpretations. Therefore, there may be new regulatory positions set out in the 117-page document.

Please see below for links to the documents referenced in this update:

For more information on this update may affect your program and how backgroundchecks.com can help, please contact client services.