12 CFR Part 1022 — Fair Credit Reporting (Regulation V)

PART 1022—FAIR CREDIT REPORTING (REGULATION V) Authority: 12 U.S.C. 5512, 5581; 15 U.S.C. 1681a, 1681b, 1681c, 1681c-1, 1681c-3, 1681e, 1681g, 1681i, 1681j, 1681m, 1681s, 1681s-2, 1681s-3, and 1681t; Sec. 214, Pub. L. 108-159, 117 Stat. 1952. Source: 76 FR 79312, Dec. 21, 2011, unless otherwise noted. Subpart A—General Provisions § 1022.1 Purpose, scope, and model forms and disclosures. (a) Purpose. (b) Scope. (2) Institutions covered. (ii) For purposes of appendix B to this part, financial institutions as defined in section 509 of the Gramm-Leach-Bliley Act (12 U.S.C. 6809), may use the model notices in appendix B to this part to comply with the notice requirement in section 623(a)(7) of the FCRA (15 U.S.C. 1681s-2(a)(7)). (c) Model forms and disclosures Use. (2) Definition. Substantially similar § 1022.2 Examples. The examples in this part are not exclusive. Compliance with an example, to the extent applicable, constitutes compliance with this part. Examples in a paragraph illustrate only the issue described in the paragraph and do not illustrate any other issue that may arise in this part. § 1022.3 Definitions. For purposes of this part, unless explicitly stated otherwise: (a) Act et seq. (b) Affiliate (c) [Reserved] (d) Common ownership or common corporate control (1) One company has, with respect to the other company: (i) Ownership, control, or power to vote 25 percent or more of the outstanding shares of any class of voting security of a company, directly or indirectly, or acting through one or more other persons; (ii) Control in any manner over the election of a majority of the directors, trustees, or general partners (or individuals exercising similar functions) of a company; or (iii) The power to exercise, directly or indirectly, a controlling influence over the management or policies of a company, as determined by the applicable prudential regulator (as defined in 12 U.S.C. 5481(24)) (a credit union is presumed to have a controlling influence over the management or policies of a credit union service corporation if the credit union service corporation is 67% owned by credit unions) or, where there is no prudential regulator, by the Bureau; or (2) Any other person has, with respect to both companies, a relationship described in paragraphs (d)(1)(i) through (d)(1)(ii). (e) Company (f) Consumer (g) Identifying information (1) Name, social security number, date of birth, official state or government issued driver's license or identification number, alien registration number, government passport number, employer or taxpayer identification number; (2) Unique biometric data, such as fingerprint, voice print, retina or iris image, or other unique physical representation; (3) Unique electronic identification number, address, or routing code; or (4) Telecommunication identifying information or access device (as defined in 18 U.S.C. 1029(e)). (h) Identity theft (i)(1) Identity theft report (i) That alleges identity theft with as much specificity as the consumer can provide; (ii) That is a copy of an official, valid report filed by the consumer with a Federal, state, or local law enforcement agency, including the United States Postal Inspection Service, the filing of which subjects the person filing the report to criminal penalties relating to the filing of false information, if, in fact, the information in the report is false; and (iii) That may include additional information or documentation that an information furnisher or consumer reporting agency reasonably requests for the purpose of determining the validity of the alleged identity theft, provided that the information furnisher or consumer reporting agency: (A) Makes such request not later than fifteen days after the date of receipt of the copy of the report form identified in Paragraph (i)(1)(ii) of this section or the request by the consumer for the particular service, whichever shall be the later; (B) Makes any supplemental requests for information or documentation and final determination on the acceptance of the identity theft report within another fifteen days after its initial request for information or documentation; and (C) Shall have five days to make a final determination on the acceptance of the identity theft report, in the event that the consumer reporting agency or information furnisher receives any such additional information or documentation on the eleventh day or later within the fifteen day period set forth in Paragraph (i)(1)(iii)(B) of this section. (2) Examples of the specificity referenced in Paragraph (i)(1)(i) of this section are provided for illustrative purposes only, as follows: (i) Specific dates relating to the identity theft such as when the loss or theft of personal information occurred or when the fraud(s) using the personal information occurred, and how the consumer discovered or otherwise learned of the theft. (ii) Identification information or any other information about the perpetrator, if known. (iii) Name(s) of information furnisher(s), account numbers, or other relevant account information related to the identity theft. (iv) Any other information known to the consumer about the identity theft. (3) Examples of when it would or would not be reasonable to request additional information or documentation referenced in Paragraph (i)(1)(iii) of this section are provided for illustrative purposes only, as follows: (i) A law enforcement report containing detailed information about the identity theft and the signature, badge number or other identification information of the individual law enforcement official taking the report should be sufficient on its face to support a victim's request. In this case, without an identifiable concern, such as an indication that the report was fraudulent, it would not be reasonable for an information furnisher or consumer reporting agency to request additional information or documentation. (ii) A consumer might provide a law enforcement report similar to the report in Paragraph (i)(1) of this section but certain important information such as the consumer's date of birth or Social Security number may be missing because the consumer chose not to provide it. The information furnisher or consumer reporting agency could accept this report, but it would be reasonable to require that the consumer provide the missing information. The Bureau's Identity Theft Affidavit is available on the Bureau's Web site ( consumerfinance.gov/learnmore ftc.gov/idtheft (iii) A consumer might provide a law enforcement report generated by an automated system with a simple allegation that an identity theft occurred to support a request for a tradeline block or cessation of information furnishing. In such a case, it would be reasonable for an information furnisher or consumer reporting agency to ask that the consumer fill out and have notarized the Bureau's Identity Theft Affidavit or a similar form and provide some form of identification documentation. (iv) A consumer might provide a law enforcement report generated by an automated system with a simple allegation that an identity theft occurred to support a request for an extended fraud alert. In this case, it would not be reasonable for a consumer reporting agency to require additional documentation or information, such as a notarized affidavit. (j) Medical debt information (k) Medical information (1) Information or data, whether oral or recorded, in any form or medium, created by or derived from a health care provider or the consumer, that relates to: (i) The past, present, or future physical, mental, or behavioral health or condition of an individual; (ii) The provision of health care to an individual; or (iii) The payment for the provision of health care to an individual. (2) The term does not include: (i) The age or gender of a consumer; (ii) Demographic information about the consumer, including a consumer's residence address or email address; (iii) Any other information about a consumer that does not relate to the physical, mental, or behavioral health or condition of a consumer, including the existence or value of any insurance policy; or (iv) Information that does not identify a specific consumer. (l) Person [76 FR 79312, Dec. 21, 2011, as amended at 90 FR 3372, Jan.14, 2025] Subpart B [Reserved] Subpart C—Affiliate Marketing § 1022.20 Coverage and definitions. (a) Coverage. (b) Definitions. (1) Clear and conspicuous. (2) Concise In general. (ii) Combination with other required disclosures. (3) Eligibility information. (4) Pre-existing business relationship In general. (A) A financial contract between the person and the consumer which is in force on the date on which the consumer is sent a solicitation covered by this subpart; (B) The purchase, rental, or lease by the consumer of the person's goods or services, or a financial transaction (including holding an active account or a policy in force or having another continuing relationship) between the consumer and the person, during the 18-month period immediately preceding the date on which the consumer is sent a solicitation covered by this subpart; or (C) An inquiry or application by the consumer regarding a product or service offered by that person during the three-month period immediately preceding the date on which the consumer is sent a solicitation covered by this subpart. (ii) Examples of pre-existing business relationships. (B) If a consumer obtained a certificate of deposit from a financial institution, but did not renew the certificate at maturity, the financial institution has a pre-existing business relationship with the consumer and can use eligibility information it receives from its affiliates to make solicitations to the consumer about its products or services for 18 months after the date of maturity of the certificate of deposit. (C) If a consumer obtains a mortgage, the mortgage lender has a pre-existing business relationship with the consumer. If the mortgage lender sells the consumer's entire loan to an investor, the mortgage lender has a pre-existing business relationship with the consumer and can use eligibility information it receives from its affiliates to make solicitations to the consumer about its products or services for 18 months after the date it sells the loan, and the investor has a pre-existing business relationship with the consumer upon purchasing the loan. If, however, the mortgage lender sells a fractional interest in the consumer's loan to an investor but also retains an ownership interest in the loan, the mortgage lender continues to have a pre-existing business relationship with the consumer, but the investor does not have a pre-existing business relationship with the consumer. If the mortgage lender retains ownership of the loan, but sells ownership of the servicing rights to the consumer's loan, the mortgage lender continues to have a pre-existing business relationship with the consumer. The purchaser of the servicing rights also has a pre-existing business relationship with the consumer as of the date it purchases ownership of the servicing rights, but only if it collects payments from or otherwise deals directly with the consumer on a continuing basis. (D) If a consumer applies to a financial institution for a product or service that it offers, but does not obtain a product or service from or enter into a financial contract or transaction with the institution, the financial institution has a pre-existing business relationship with the consumer and can therefore use eligibility information it receives from an affiliate to make solicitations to the consumer about its products or services for three months after the date of the application. (E) If a consumer makes a telephone inquiry to a financial institution about its products or services and provides contact information to the institution, but does not obtain a product or service from or enter into a financial contract or transaction with the institution, the financial institution has a pre-existing business relationship with the consumer and can therefore use eligibility information it receives from an affiliate to make solicitations to the consumer about its products or services for three months after the date of the inquiry. (F) If a consumer makes an inquiry to a financial institution by email about its products or services, but does not obtain a product or service from or enter into a financial contract or transaction with the institution, the financial institution has a pre-existing business relationship with the consumer and can therefore use eligibility information it receives from an affiliate to make solicitations to the consumer about its products or services for three months after the date of the inquiry. (G) If a consumer has an existing relationship with a financial institution that is part of a group of affiliated companies, makes a telephone call to the centralized call center for the group of affiliated companies to inquire about products or services offered by the insurance affiliate, and provides contact information to the call center, the call constitutes an inquiry to the insurance affiliate that offers those products or services. The insurance affiliate has a pre-existing business relationship with the consumer and can therefore use eligibility information it receives from its affiliated financial institution to make solicitations to the consumer about its products or services for three months after the date of the inquiry. (iii) Examples where no pre-existing business relationship is created. (B) If a consumer who has a deposit account with a financial institution makes a telephone call to an affiliate of the institution to ask about the affiliate's retail locations and hours, but does not make an inquiry about the affiliate's products or services, the call does not constitute an inquiry and does not establish a pre-existing business relationship between the consumer and the affiliate. Also, the affiliate's capture of the consumer's telephone number does not constitute an inquiry and does not establish a pre-existing business relationship between the consumer and the affiliate. (C) If a consumer makes a telephone call to a financial institution in response to an advertisement that offers a free promotional item to consumers who call a toll-free number, but the advertisement does not indicate that the financial institution's products or services will be marketed to consumers who call in response, the call does not create a pre-existing business relationship between the consumer and the financial institution because the consumer has not made an inquiry about a product or service offered by the institution, but has merely responded to an offer for a free promotional item. (5) Solicitation In general. (A) Based on eligibility information communicated to that person by its affiliate as described in this subpart; and (B) Intended to encourage the consumer to purchase or obtain such product or service. (ii) Exclusion of marketing directed at the general public. (iii) Examples of solicitations. (6) You § 1022.21 Affiliate marketing opt-out and exceptions. (a) Initial notice and opt-out requirement In general. (i) It is clearly and conspicuously disclosed to the consumer in writing or, if the consumer agrees, electronically, in a concise notice that you may use eligibility information about that consumer received from an affiliate to make solicitations for marketing purposes to the consumer; (ii) The consumer is provided a reasonable opportunity and a reasonable and simple method to “opt out,” or prohibit you from using eligibility information to make solicitations for marketing purposes to the consumer; and (iii) The consumer has not opted out. (2) Example. (3) Affiliates who may provide the notice. (i) By an affiliate that has or has previously had a pre-existing business relationship with the consumer; or (ii) As part of a joint notice from two or more members of an affiliated group of companies, provided that at least one of the affiliates on the joint notice has or has previously had a pre-existing business relationship with the consumer. (b) Making solicitations In general. (i) You receive eligibility information from an affiliate; (ii) You use that eligibility information to do one or more of the following: (A) Identify the consumer or type of consumer to receive a solicitation; (B) Establish criteria used to select the consumer to receive a solicitation; or (C) Decide which of your products or services to market to the consumer or tailor your solicitation to that consumer; and (iii) As a result of your use of the eligibility information, the consumer is provided a solicitation. (2) Receiving eligibility information from an affiliate, including through a common database. (3) Receipt or use of eligibility information by your service provider. (4) Use by an affiliate of its own eligibility information. (i) Uses its own eligibility information that it obtained in connection with a pre-existing business relationship it has or had with the consumer to market your products or services to the consumer; or (ii) Directs its service provider to use the affiliate's own eligibility information that it obtained in connection with a pre-existing business relationship it has or had with the consumer to market your products or services to the consumer, and you do not communicate directly with the service provider regarding that use. (5) Use of eligibility information by a service provider In general. (A) Your affiliate controls access to and use of its eligibility information by the service provider (including the right to establish the specific terms and conditions under which the service provider may use such information to market your products or services); (B) Your affiliate establishes specific terms and conditions under which the service provider may access and use the affiliate's eligibility information to market your products and services (or those of affiliates generally) to the consumer, such as the identity of the affiliated companies whose products or services may be marketed to the consumer by the service provider, the types of products or services of affiliated companies that may be marketed, and the number of times the consumer may receive marketing materials, and periodically evaluates the service provider's compliance with those terms and conditions; (C) Your affiliate requires the service provider to implement reasonable policies and procedures designed to ensure that the service provider uses the affiliate's eligibility information in accordance with the terms and conditions established by the affiliate relating to the marketing of your products or services; (D) Your affiliate is identified on or with the marketing materials provided to the consumer; and (E) You do not directly use your affiliate's eligibility information in the manner described in paragraph (b)(1)(ii) of this section. (ii) Writing requirements. (B) The specific terms and conditions established by your affiliate as provided in paragraph (b)(5)(i)(B) of this section must be set forth in writing. (6) Examples of making solicitations. (ii) The same facts as in the example in paragraph (b)(6)(i) of this section, except that after using the eligibility information to identify the consumer to receive a solicitation about insurance products, the insurance company asks the financial institution to send the solicitation to the consumer and the financial institution does so. Pursuant to paragraph (b)(1) of this section, the insurance company has made a solicitation to the consumer because it used eligibility information about the consumer that it received from an affiliate to identify the consumer to receive a solicitation about its products or services, and, as a result, a solicitation was provided to the consumer about the insurance company's products. (iii) The same facts as in the example in paragraph (b)(6)(i) of this section, except that eligibility information about consumers that have deposit accounts with the financial institution is placed into a common database that all members of the affiliated group of companies may independently access and use. Without using the financial institution's eligibility information, the insurance company develops selection criteria and provides those criteria, marketing materials, and related instructions to the financial institution. The financial institution reviews eligibility information about its own consumers using the selection criteria provided by the insurance company to determine which consumers should receive the insurance company's marketing materials and sends marketing materials about the insurance company's products to those consumers. Even though the insurance company has received eligibility information through the common database as provided in paragraph (b)(2) of this section, it did not use that information to identify consumers or establish selection criteria; instead, the financial institution used its own eligibility information. Therefore, pursuant to paragraph (b)(4)(i) of this section, the insurance company has not made a solicitation to the consumer. (iv) The same facts as in the example in paragraph (b)(6)(iii) of this section, except that the financial institution provides the insurance company's criteria to the financial institution's service provider and directs the service provider to use the financial institution's eligibility information to identify financial institution consumers who meet the criteria and to send the insurance company's marketing materials to those consumers. The insurance company does not communicate directly with the service provider regarding the use of the financial institution's information to market its products to the financial institution's consumers. Pursuant to paragraph (b)(4)(ii) of this section, the insurance company has not made a solicitation to the consumer. (v) An affiliated group of companies includes a financial institution, an insurance company, and a service provider. Each affiliate in the group places information about its consumers into a common database. The service provider has access to all information in the common database. The financial institution controls access to and use of its eligibility information by the service provider. This control is set forth in a written agreement between the financial institution and the service provider. The written agreement also requires the service provider to establish reasonable policies and procedures designed to ensure that the service provider uses the financial institution's eligibility information in accordance with specific terms and conditions established by the financial institution relating to the marketing of the products and services of all affiliates, including the insurance company. In a separate written communication, the financial institution specifies the terms and conditions under which the service provider may use the financial institution's eligibility information to market the insurance company's products and services to the financial institution's consumers. The specific terms and conditions are: a list of affiliated companies (including the insurance company) whose products or services may be marketed to the financial institution's consumers by the service provider; the specific products or types of products that may be marketed to the financial institution's consumers by the service provider; the categories of eligibility information that may be used by the service provider in marketing products or services to the financial institution's consumers; the types or categories of the financial institution's consumers to whom the service provider may market products or services of financial institution affiliates; the number and/or types of marketing communications that the service provider may send to the financial institution's consumers; and the length of time during which the service provider may market the products or services of the financial institution's affiliates to its consumers. The financial institution periodically evaluates the service provider's compliance with these terms and conditions. The insurance company asks the service provider to market insurance products to certain consumers who have deposit accounts with the financial institution. Without using the financial institution's eligibility information, the insurance company develops selection criteria and provides those criteria, marketing materials, and related instructions to the service provider. The service provider uses the financial institution's eligibility information from the common database to identify the financial institution's consumers to whom insurance products will be marketed. When the insurance company's marketing materials are provided to the identified consumers, the name of the financial institution is displayed on the insurance marketing materials, an introductory letter that accompanies the marketing materials, an account statement that accompanies the marketing materials, or the envelope containing the marketing materials. The requirements of paragraph (b)(5) of this section have been satisfied, and the insurance company has not made a solicitation to the consumer. (vi) The same facts as in the example in paragraph (b)(6)(v) of this section, except that the terms and conditions permit the service provider to use the financial institution's eligibility information to market the products and services of other affiliates to the financial institution's consumers whenever the service provider deems it appropriate to do so. The service provider uses the financial institution's eligibility information in accordance with the discretion afforded to it by the terms and conditions. Because the terms and conditions are not specific, the requirements of paragraph (b)(5) of this section have not been satisfied. (c) Exceptions. (1) To make a solicitation for marketing purposes to a consumer with whom you have a pre-existing business relationship; (2) To facilitate communications to an individual for whose benefit you provide employee benefit or other services pursuant to a contract with an employer related to and arising out of the current employment relationship or status of the individual as a participant or beneficiary of an employee benefit plan; (3) To perform services on behalf of an affiliate, except that this subparagraph shall not be construed as permitting you to send solicitations on behalf of an affiliate if the affiliate would not be permitted to send the solicitation as a result of the election of the consumer to opt out under this subpart; (4) In response to a communication about your products or services initiated by the consumer; (5) In response to an authorization or request by the consumer to receive solicitations; or (6) If your compliance with this subpart would prevent you from complying with any provision of state insurance laws pertaining to unfair discrimination in any state in which you are lawfully doing business. (d) Examples of exceptions Example of the pre-existing business relationship exception. (2) Examples of service provider exception. (ii) The same facts as in paragraph (d)(2)(i) of this section, except the consumer has been given an opt-out notice, but has not elected to opt out. The financial institution asks a service provider to send the solicitation to the consumer on its behalf. The service provider may send the solicitation on behalf of the financial institution because, as a result of the consumer's not opting out, the financial institution is permitted to make the solicitation. (3) Examples of consumer-initiated communications. (ii) A consumer who has a deposit account with a financial institution contacts the institution to request information about how to save and invest for a child's college education without specifying the type of product in which the consumer may be interested. Information about a range of different products or services offered by the financial institution and one or more affiliates of the institution may be responsive to that communication. Such products or services may include the following: mutual funds offered by the institution's mutual fund affiliate; section 529 plans offered by the institution, its mutual fund affiliate, or another securities affiliate; or trust services offered by a different financial institution in the affiliated group. Any affiliate offering investment products or services that would be responsive to the consumer's request for information about saving and investing for a child's college education may use eligibility information to make solicitations to the consumer in response to this communication. (iii) A credit card issuer makes a marketing call to the consumer without using eligibility information received from an affiliate. The issuer leaves a voice-mail message that invites the consumer to call a toll-free number to apply for the issuer's credit card. If the consumer calls the toll-free number to inquire about the credit card, the call is a consumer-initiated communication about a product or service and the credit card issuer may now use eligibility information it receives from its affiliates to make solicitations to the consumer. (iv) A consumer calls a financial institution to ask about retail locations and hours, but does not request information about products or services. The institution may not use eligibility information it receives from an affiliate to make solicitations to the consumer about its products or services because the consumer-initiated communication does not relate to the financial institution's products or services. Thus, the use of eligibility information received from an affiliate would not be responsive to the communication and the exception does not apply. (v) A consumer calls a financial institution to ask about retail locations and hours. The customer service representative asks the consumer if there is a particular product or service about which the consumer is seeking information. The consumer responds that the consumer wants to stop in and find out about certificates of deposit. The customer service representative offers to provide that information by telephone and mail additional information and application materials to the consumer. The consumer agrees and provides or confirms contact information for receipt of the materials to be mailed. The financial institution may use eligibility information it receives from an affiliate to make solicitations to the consumer about certificates of deposit because such solicitations would respond to the consumer-initiated communication about products or services. (4) Examples of consumer authorization or request for solicitations. (ii) A consumer completes an online application to apply for a credit card from a credit card issuer. The issuer's online application contains a blank check box that the consumer may check to authorize or request information from the credit card issuer's affiliates. The consumer checks the box. The consumer has authorized or requested solicitations from the card issuer's affiliates. (iii) A consumer completes an online application to apply for a credit card from a credit card issuer. The issuer's online application contains a pre-selected check box indicating that the consumer authorizes or requests information from the issuer's affiliates. The consumer does not deselect the check box. The consumer has not authorized or requested solicitations from the card issuer's affiliates. (iv) The terms and conditions of a credit card account agreement contain preprinted boilerplate language stating that by applying to open an account the consumer authorizes or requests to receive solicitations from the credit card issuer's affiliates. The consumer has not authorized or requested solicitations from the card issuer's affiliates. (e) Relation to affiliate-sharing notice and opt-out. § 1022.22 Scope and duration of opt-out. (a) Scope of opt-out In general. (2) Continuing relationship. In general. (A) A single continuing relationship or multiple continuing relationships that the consumer establishes with you or your affiliates, including continuing relationships established subsequent to delivery of the opt-out notice, so long as the notice adequately describes the continuing relationships covered by the opt-out; or (B) Any other transaction between the consumer and you or your affiliates as described in the notice. (ii) Examples of continuing relationships. (A) Opens a deposit or investment account with you or your affiliate; (B) Obtains a loan for which you or your affiliate owns the servicing rights; (C) Purchases an insurance product from you or your affiliate; (D) Holds an investment product through you or your affiliate, such as when you act or your affiliate acts as a custodian for securities or for assets in an individual retirement arrangement; (E) Enters into an agreement or understanding with you or your affiliate whereby you or your affiliate undertakes to arrange or broker a home mortgage loan for the consumer; (F) Enters into a lease of personal property with you or your affiliate; or (G) Obtains financial, investment, or economic advisory services from you or your affiliate for a fee. (3) No continuing relationship. In general. (ii) Examples of isolated transactions. (A) The consumer uses your or your affiliate's ATM to withdraw cash from an account at another financial institution; or (B) You or your affiliate sells the consumer a cashier's check or money order, airline tickets, travel insurance, or traveler's checks in isolated transactions. (4) Menu of alternatives. (5) Special rule for a notice following termination of all continuing relationships In general. (ii) Example. (b) Duration of opt-out. (c) Time of opt-out. § 1022.23 Contents of opt-out notice; consolidated and equivalent notices. (a) Contents of opt-out notice In general. (i) The name of the affiliate(s) providing the notice. If the notice is provided jointly by multiple affiliates and each affiliate shares a common name, such as “ABC,” then the notice may indicate that it is being provided by multiple companies with the ABC name or multiple companies in the ABC group or family of companies, for example, by stating that the notice is provided by “all of the ABC companies,” “the ABC banking, credit card, insurance, and securities companies,” or by listing the name of each affiliate providing the notice. But if the affiliates providing the joint notice do not all share a common name, then the notice must either separately identify each affiliate by name or identify each of the common names used by those affiliates, for example, by stating that the notice is provided by “all of the ABC and XYZ companies” or by “the ABC banking and credit card companies and the XYZ insurance companies;” (ii) A list of the affiliates or types of affiliates whose use of eligibility information is covered by the notice, which may include companies that become affiliates after the notice is provided to the consumer. If each affiliate covered by the notice shares a common name, such as “ABC,” then the notice may indicate that it applies to multiple companies with the ABC name or multiple companies in the ABC group or family of companies, for example, by stating that the notice is provided by “all of the ABC companies,” “the ABC banking, credit card, insurance, and securities companies,” or by listing the name of each affiliate providing the notice. But if the affiliates covered by the notice do not all share a common name, then the notice must either separately identify each covered affiliate by name or identify each of the common names used by those affiliates, for example, by stating that the notice applies to “all of the ABC and XYZ companies” or to “the ABC banking and credit card companies and the XYZ insurance companies;” (iii) A general description of the types of eligibility information that may be used to make solicitations to the consumer; (iv) That the consumer may elect to limit the use of eligibility information to make solicitations to the consumer; (v) That the consumer's election will apply for the specified period of time stated in the notice and, if applicable, that the consumer will be allowed to renew the election once that period expires; (vi) If the notice is provided to consumers who may have previously opted out, such as if a notice is provided to consumers annually, that the consumer who has chosen to limit solicitations does not need to act again until the consumer receives a renewal notice; and (vii) A reasonable and simple method for the consumer to opt out. (2) Joint relationships. (ii) The opt-out notice must explain how an opt-out direction by a joint consumer will be treated. An opt-out direction by a joint consumer may be treated as applying to all of the associated joint consumers, or each joint consumer may be permitted to opt out separately. If each joint consumer is permitted to opt out separately, one of the joint consumers must be permitted to opt out on behalf of all of the joint consumers and the joint consumers must be permitted to exercise their separate rights to opt out in a single response. (iii) It is impermissible to require all any (3) Alternative contents. (4) Model notices. (b) Coordinated and consolidated notices. (c) Equivalent notices. § 1022.24 Reasonable opportunity to opt out. (a) In general. (b) Examples of a reasonable opportunity to opt out. (1) By mail. (2) By electronic means. (ii) The opt-out notice is provided to the consumer by email where the consumer has agreed to receive disclosures by email from the person sending the notice. The consumer is given 30 days after the email is sent to elect to opt out by any reasonable means. (3) At the time of an electronic transaction. (4) At the time of an in-person transaction. (5) By including in a privacy notice. § 1022.25 Reasonable and simple methods of opting out. (a) In general. (b) Examples Reasonable and simple opt-out methods. (i) Designating a check-off box in a prominent position on the opt-out form; (ii) Including a reply form and a self-addressed envelope together with the opt-out notice; (iii) Providing an electronic means to opt out, such as a form that can be electronically mailed or processed at a Web site, if the consumer agrees to the electronic delivery of information; (iv) Providing a toll-free telephone number that consumers may call to opt out; or (v) Allowing consumers to exercise all of their opt-out rights described in a consolidated opt-out notice that includes the privacy opt-out under the Gramm-Leach-Bliley Act, 15 U.S.C. 6801 et seq., (2) Opt-out methods that are not reasonable and simple. do not (i) Requiring the consumer to write his or her own letter; (ii) Requiring the consumer to call or write to obtain a form for opting out, rather than including the form with the opt-out notice; (iii) Requiring the consumer who receives the opt-out notice in electronic form only, such as through posting at a Web site, to opt out solely by paper mail or by visiting a different Web site without providing a link to that site. (c) Specific opt-out means. § 1022.26 Delivery of opt-out notices. (a) In general. et seq. (b) Examples of reasonable expectation of actual notice. (1) Hand-delivers a printed copy of the notice to the consumer; (2) Mails a printed copy of the notice to the last known mailing address of the consumer; (3) Provides a notice by email to a consumer who has agreed to receive electronic disclosures by email from the affiliate providing the notice; or (4) Posts the notice on the Web site at which the consumer obtained a product or service electronically and requires the consumer to acknowledge receipt of the notice. (c) Examples of no reasonable expectation of actual notice. not (1) Only posts the notice on a sign in a branch or office or generally publishes the notice in a newspaper; (2) Sends the notice via email to a consumer who has not agreed to receive electronic disclosures by email from the affiliate providing the notice; or (3) Posts the notice on a Web site without requiring the consumer to acknowledge receipt of the notice. § 1022.27 Renewal of opt-out. (a) Renewal notice and opt-out requirement In general. (i) The consumer has been given a renewal notice that complies with the requirements of this section and §§ 1022.24 through 1022.26 of this part, and a reasonable opportunity and a reasonable and simple method to renew the opt-out, and the consumer does not renew the opt-out; or (ii) An exception in § 1022.21(c) of this part applies. (2) Renewal period. (3) Affiliates who may provide the notice. (i) By the affiliate that provided the previous opt-out notice, or its successor; or (ii) As part of a joint renewal notice from two or more members of an affiliated group of companies, or their successors, that jointly provided the previous opt-out notice. (b) Contents of renewal notice. (1) The name of the affiliate(s) providing the notice. If the notice is provided jointly by multiple affiliates and each affiliate shares a common name, such as “ABC,” then the notice may indicate that it is being provided by multiple companies with the ABC name or multiple companies in the ABC group or family of companies, for example, by stating that the notice is provided by “all of the ABC companies,” “the ABC banking, credit card, insurance, and securities companies,” or by listing the name of each affiliate providing the notice. But if the affiliates providing the joint notice do not all share a common name, then the notice must either separately identify each affiliate by name or identify each of the common names used by those affiliates, for example, by stating that the notice is provided by “all of the ABC and XYZ companies” or by “the ABC banking and credit card companies and the XYZ insurance companies”; (2) A list of the affiliates or types of affiliates whose use of eligibility information is covered by the notice, which may include companies that become affiliates after the notice is provided to the consumer. If each affiliate covered by the notice shares a common name, such as “ABC,” then the notice may indicate that it applies to multiple companies with the ABC name or multiple companies in the ABC group or family of companies, for example, by stating that the notice is provided by “all of the ABC companies,” “the ABC banking, credit card, insurance, and securities companies,” or by listing the name of each affiliate providing the notice. But if the affiliates covered by the notice do not all share a common name, then the notice must either separately identify each covered affiliate by name or identify each of the common names used by those affiliates, for example, by stating that the notice applies to “all of the ABC and XYZ companies” or to “the ABC banking and credit card companies and the XYZ insurance companies;” (3) A general description of the types of eligibility information that may be used to make solicitations to the consumer; (4) That the consumer previously elected to limit the use of certain information to make solicitations to the consumer; (5) That the consumer's election has expired or is about to expire; (6) That the consumer may elect to renew the consumer's previous election; (7) If applicable, that the consumer's election to renew will apply for the specified period of time stated in the notice and that the consumer will be allowed to renew the election once that period expires; and (8) A reasonable and simple method for the consumer to opt out. (c) Timing of the renewal notice In general. (i) A reasonable period of time before the expiration of the opt-out period; or (ii) Any time after the expiration of the opt-out period but before solicitations that would have been prohibited by the expired opt-out are made to the consumer. (2) Combination with annual privacy notice. et seq., (d) No effect on opt-out period. Subpart D—Medical Information § 1022.30 Obtaining or using medical information in connection with a determination of eligibility for credit. (a) Scope. (b) General prohibition on obtaining or using medical information In general. (2) Definitions. Credit (ii) Creditor (iii) Eligibility, or continued eligibility, for credit (A) Any determination of the consumer's qualification or fitness for employment, insurance (other than a credit insurance product), or other non-credit products or services; (B) Authorizing, processing, or documenting a payment or transaction on behalf of the consumer in a manner that does not involve a determination of the consumer's eligibility, or continued eligibility, for credit; or (C) Maintaining or servicing the consumer's account in a manner that does not involve a determination of the consumer's eligibility, or continued eligibility, for credit. (c) Rule of construction for obtaining and using unsolicited medical information In general. (2) Use of unsolicited medical information. (3) Examples. (i) In response to a general question regarding a consumer's debts or expenses, the creditor receives information that the consumer owes a debt to a hospital. (ii) In a conversation with the creditor's loan officer, the consumer informs the creditor that the consumer has a particular medical condition. (d) [Reserved] (e) Specific exceptions for obtaining and using medical information In general. (i) To determine whether the use of a power of attorney or legal representative that is triggered by a medical condition or event is necessary and appropriate or whether the consumer has the legal capacity to contract when a person seeks to exercise a power of attorney or act as legal representative for a consumer based on an asserted medical condition or event; (ii) To comply with applicable requirements of local, state, or Federal laws; (iii) To determine, at the consumer's request, whether the consumer qualifies for a legally permissible special credit program or credit-related assistance program that is: (A) Designed to meet the special needs of consumers with medical conditions; and (B) Established and administered pursuant to a written plan that: ( 1 ( 2 (iv) To the extent necessary for purposes of fraud prevention or detection; (v) In the case of credit for the purpose of financing medical products or services, to determine and verify the medical purpose of a loan and the use of proceeds; (vi) Consistent with safe and sound practices, if the consumer or the consumer's legal representative specifically requests that the creditor use medical information in determining the consumer's eligibility, or continued eligibility, for credit, to accommodate the consumer's particular circumstances, and such request is documented by the creditor; (vii) Consistent with safe and sound practices, to determine whether the provisions of a forbearance practice or program that is triggered by a medical condition or event apply to a consumer; (viii) To determine the consumer's eligibility for, the triggering of, or the reactivation of a debt cancellation contract or debt suspension agreement if a medical condition or event is a triggering event for the provision of benefits under the contract or agreement; (ix) To determine the consumer's eligibility for, the triggering of, or the reactivation of a credit insurance product if a medical condition or event is a triggering event for the provision of benefits under the product; or (x) So long as the conditions in paragraphs (e)(1)(x)(A) through (C) of this section are met: (A)( 1 ( 2 (B) The creditor uses the medical information in a manner and to an extent that is no less favorable than it would use comparable information that is not medical information in a credit transaction. (C) The creditor does not take the consumer's physical, mental, or behavioral health, condition or history, type of treatment, or prognosis into account as part of the determination of the consumer's eligibility, or continued eligibility, for credit. (2) Example of determining eligibility for a special credit program or credit assistance program. (3) Examples of verifying the medical purpose of the loan or the use of proceeds. (ii) If a consumer applies for $10,000 of credit for the purpose of financing cosmetic surgery, the creditor may confirm the cost of the procedure with the surgeon. If the surgeon reports that the cost of the procedure is $5,000, the creditor may use that medical information to offer the consumer only $5,000 of credit. (iii) A creditor has an established medical loan program for financing particular elective surgical procedures. The creditor receives a loan application from a consumer requesting $10,000 of credit under the established loan program for an elective surgical procedure. The consumer indicates on the application that the purpose of the loan is to finance an elective surgical procedure not eligible for funding under the guidelines of the established loan program. The creditor may deny the consumer's application because the purpose of the loan is not for a particular procedure funded by the established loan program. (4) Examples of obtaining and using medical information at the request of the consumer. (ii) If a consumer applies for a loan by telephone and explains that his income has been and will continue to be interrupted on account of a medical condition and that he expects to repay the loan by liquidating assets, the creditor may, but is not required to, evaluate the application using the sale of assets as the primary source of repayment, consistent with safe and sound practices, provided that the creditor documents the consumer's request by recording the oral conversation or making a notation of the request in the consumer's file. (iii) If a consumer applies for a loan and the application form provides a space where the consumer may provide any other information or special circumstances, whether medical or non-medical, that the consumer would like the creditor to consider in evaluating the consumer's application, the creditor may use medical information provided by the consumer in that space on that application to accommodate the consumer's application for credit, consistent with safe and sound practices, or may disregard that information. (iv) If a consumer specifically requests that the creditor use medical information in determining the consumer's eligibility, or continued eligibility, for credit and provides the creditor with medical information for that purpose, and the creditor determines that it needs additional information regarding the consumer's circumstances, the creditor may request, obtain, and use additional medical information about the consumer as necessary to verify the information provided by the consumer or to determine whether to make an accommodation for the consumer. The consumer may decline to provide additional information, withdraw the request for an accommodation, and have the application considered under the creditor's otherwise applicable underwriting criteria. (v) If a consumer completes and signs a credit application that is not for medical purpose credit and the application contains boilerplate language that routinely requests medical information from the consumer or that indicates that by applying for credit the consumer authorizes or consents to the creditor obtaining and using medical information in connection with a determination of the consumer's eligibility, or continued eligibility, for credit, the consumer has not specifically requested that the creditor obtain and use medical information to accommodate the consumer's particular circumstances. (5) Example of a forbearance practice or program. (6) Example to comply with applicable requirements of local, State, or Federal laws. (7) Example of medical information relating to income and benefits. [76 FR 79312, Dec. 21, 2011, as amended at 90 FR 3372, Jan. 14, 2025] § 1022.31 Limits on redisclosure of information. (a) Scope. (b) Limits on redisclosure. § 1022.32 Sharing medical information with affiliates. (a) Scope. (b) In general. (1) Medical information; (2) An individualized list or description based on the payment transactions of the consumer for medical products or services; or (3) An aggregate list of identified consumers based on payment transactions for medical products or services. (c) Exceptions. (1) In connection with the business of insurance or annuities (including the activities described in section 18B of the model Privacy of Consumer Financial and Health Information Regulation issued by the National Association of Insurance Commissioners, as in effect on January 1, 2003); (2) For any purpose permitted without authorization under the regulations promulgated by the Department of Health and Human Services pursuant to the Health Insurance Portability and Accountability Act of 1996 (HIPAA); (3) For any purpose referred to in section 1179 of HIPAA; (4) For any purpose described in section 502(e) of the Gramm-Leach-Bliley Act; (5) In connection with a determination of the consumer's eligibility, or continued eligibility, for credit consistent with § 1022.30 of this part; or (6) As otherwise permitted by order of the Bureau. §§ 1022.33-1022.37 [Reserved] § 1022.38 Duty of consumer reporting agencies regarding medical debt information. (a) Scope. (b) Limitation regarding prohibited medical debt information. (1) Has reason to believe the creditor intends to use the medical debt information in a manner not prohibited by § 1022.30; and (2) Has reason to believe the creditor is not otherwise legally prohibited from obtaining or using the medical debt information, including by a State law that prohibits a creditor from obtaining or using medical debt information. [90 FR 3373, Jan. 14, 2025] Subpart E—Duties of Furnishers of Information § 1022.40 Scope. Subpart E of this part applies to any person that furnishes information to a consumer reporting agency, except for a person excluded from coverage of this part by section 1029 of the Consumer Financial Protection Act of 2010, title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, 124 Stat. 1376. § 1022.41 Definitions. For purposes of this subpart and appendix E of this part, the following definitions apply: (a) Accuracy (1) Reflects the terms of and liability for the account or other relationship; (2) Reflects the consumer's performance and other conduct with respect to the account or other relationship; and (3) Identifies the appropriate consumer. (b) Direct dispute (c) Furnisher (1) Provides information to a consumer reporting agency solely to obtain a consumer report in accordance with sections 604(a) and (f) of the FCRA; (2) Is acting as a “consumer reporting agency” as defined in section 603(f) of the FCRA; (3) Is a consumer to whom the furnished information pertains; or (4) Is a neighbor, friend, or associate of the consumer, or another individual with whom the consumer is acquainted or who may have knowledge about the consumer, and who provides information about the consumer's character, general reputation, personal characteristics, or mode of living in response to a specific request from a consumer reporting agency. (d) Integrity (1) Is substantiated by the furnisher's records at the time it is furnished; (2) Is furnished in a form and manner that is designed to minimize the likelihood that the information may be incorrectly reflected in a consumer report; and (3) Includes the information in the furnisher's possession about the account or other relationship that the Bureau has: (i) Determined that the absence of which would likely be materially misleading in evaluating a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living; and (ii) Listed in section I(b)(2)(iii) of appendix E of this part. § 1022.42 Reasonable policies and procedures concerning the accuracy and integrity of furnished information. (a) Policies and procedures. (b) Guidelines. (c) Reviewing and updating policies and procedures. § 1022.43 Direct disputes. (a) General rule. (1) The consumer's liability for a credit account or other debt with the furnisher, such as direct disputes relating to whether there is or has been identity theft or fraud against the consumer, whether there is individual or joint liability on an account, or whether the consumer is an authorized user of a credit account; (2) The terms of a credit account or other debt with the furnisher, such as direct disputes relating to the type of account, principal balance, scheduled payment amount on an account, or the amount of the credit limit on an open-end account; (3) The consumer's performance or other conduct concerning an account or other relationship with the furnisher, such as direct disputes relating to the current payment status, high balance, date a payment was made, the amount of a payment made, or the date an account was opened or closed; or (4) Any other information contained in a consumer report regarding an account or other relationship with the furnisher that bears on the consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. (b) Exceptions. (1) The direct dispute relates to: (i) The consumer's identifying information (other than a direct dispute relating to a consumer's liability for a credit account or other debt with the furnisher, as provided in paragraph (a)(1) of this section) such as name(s), date of birth, Social Security number, telephone number(s), or address(es); (ii) The identity of past or present employers; (iii) Inquiries or requests for a consumer report; (iv) Information derived from public records, such as judgments, bankruptcies, liens, and other legal matters (unless provided by a furnisher with an account or other relationship with the consumer); (v) Information related to fraud alerts or active duty alerts; or (vi) Information provided to a consumer reporting agency by another furnisher; or (2) The furnisher has a reasonable belief that the direct dispute is submitted by, is prepared on behalf of the consumer by, or is submitted on a form supplied to the consumer by, a credit repair organization, as defined in 15 U.S.C. 1679a(3), or an entity that would be a credit repair organization, but for 15 U.S.C. 1679a(3)(B)(i). (c) Direct dispute address. (1) The address of a furnisher provided by a furnisher and set forth on a consumer report relating to the consumer; (2) An address clearly and conspicuously specified by the furnisher for submitting direct disputes that is provided to the consumer in writing or electronically (if the consumer has agreed to the electronic delivery of information from the furnisher); or (3) Any business address of the furnisher if the furnisher has not so specified and provided an address for submitting direct disputes under paragraphs (c)(1) or (2) of this section. (d) Direct dispute notice contents. (1) Sufficient information to identify the account or other relationship that is in dispute, such as an account number and the name, address, and telephone number of the consumer, if applicable; (2) The specific information that the consumer is disputing and an explanation of the basis for the dispute; and (3) All supporting documentation or other information reasonably required by the furnisher to substantiate the basis of the dispute. This documentation may include, for example: a copy of the relevant portion of the consumer report that contains the allegedly inaccurate information; a police report; a fraud or identity theft affidavit; a court order; or account statements. (e) Duty of furnisher after receiving a direct dispute notice. (1) Conduct a reasonable investigation with respect to the disputed information; (2) Review all relevant information provided by the consumer with the dispute notice; (3) Complete its investigation of the dispute and report the results of the investigation to the consumer before the expiration of the period under section 611(a)(1) of the FCRA (15 U.S.C. 1681i(a)(1)) within which a consumer reporting agency would be required to complete its action if the consumer had elected to dispute the information under that section; and (4) If the investigation finds that the information reported was inaccurate, promptly notify each consumer reporting agency to which the furnisher provided inaccurate information of that determination and provide to the consumer reporting agency any correction to that information that is necessary to make the information provided by the furnisher accurate. (f) Frivolous or irrelevant disputes. (i) The consumer did not provide sufficient information to investigate the disputed information as required by paragraph (d) of this section; (ii) The direct dispute is substantially the same as a dispute previously submitted by or on behalf of the consumer, either directly to the furnisher or through a consumer reporting agency, with respect to which the furnisher has already satisfied the applicable requirements of the Act or this section; provided, however, that a direct dispute is not substantially the same as a dispute previously submitted if the dispute includes information listed in paragraph (d) of this section that had not previously been provided to the furnisher; or (iii) The furnisher is not required to investigate the direct dispute because one or more of the exceptions listed in paragraph (b) of this section applies. (2) Notice of determination. (3) Contents of notice of determination that a dispute is frivolous or irrelevant. Subpart F—Duties of Users Regarding Obtaining and Using Consumer Reports §§ 1022.50-1022.53 [Reserved] § 1022.54 Duties of users making written firm offers of credit or insurance based on information contained in consumer files. (a) Scope. (b) Definitions. (1) Simple and easy to understand (i) A layered format as described in paragraph (c) of this section; (ii) Plain language designed to be understood by ordinary consumers; and (iii) Use of clear and concise sentences, paragraphs, and sections. (iv) Examples. For purposes of this part, examples of factors to be considered in determining whether a statement is in plain language and uses clear and concise sentences, paragraphs, and sections include: (A) Use of short explanatory sentences; (B) Use of definite, concrete, everyday words; (C) Use of active voice; (D) Avoidance of multiple negatives; (E) Avoidance of legal and technical business terminology; (F) Avoidance of explanations that are imprecise and reasonably subject to different interpretations; and (G) Use of language that is not misleading. (2) Principal promotional document (c) Prescreen opt-out notice. (1) Short notice. (i) Content. (ii) Form. (A) In a type size that is larger than the type size of the principal text on the same page, but in no event smaller than 12 point type, or if provided by electronic means, then reasonable steps shall be taken to ensure that the type size is larger than the type size of the principal text on the same page; (B) On the front side of the first page of the principal promotional document in the solicitation, or, if provided electronically, on the same page and in close proximity to the principal marketing message; (C) Located on the page and in a format so that the statement is distinct from other text, such as inside a border; and (D) In a type style that is distinct from the principal type style used on the same page, such as bolded, italicized, underlined, and/or in a color that contrasts with the color of the principal text on the page, if the solicitation is in more than one color. (2) Long notice. (i) Content. (ii) Form. (A) Appear in the solicitation; (B) Be in a type size that is no smaller than the type size of the principal text on the same page, and, for solicitations provided other than by electronic means, the type size shall in no event be smaller than 8 point type; (C) Begin with a heading in capital letters and underlined, and identifying the long notice as the “PRESCREEN&OPT-OUT NOTICE;” (D) Be in a type style that is distinct from the principal type style used on the same page, such as bolded, italicized, underlined, and/or in a color that contrasts with the color of the principal text on the page, if the solicitation is in more than one color; and (E) Be set apart from other text on the page, such as by including a blank line above and below the statement, and by indenting both the left and right margins from other text on the page. §§ 1022.55-1022.59 [Reserved] Subpart G [Reserved] Subpart H—Duties of Users Regarding Risk-Based Pricing § 1022.70 Scope. (a) Coverage In general. (i) Uses a consumer report in connection with an application for, or a grant, extension, or other provision of, credit to a consumer that is primarily for personal, family, or household purposes; and (ii) Based in whole or in part on the consumer report, grants, extends, or otherwise provides credit to the consumer on material terms that are materially less favorable than the most favorable material terms available to a substantial proportion of consumers from or through that person. (2) Business credit excluded. (b) Enforcement. § 1022.71 Definitions. For purposes of this subpart, the following definitions apply: (a) Adverse action (b) Annual percentage rate (c) Closed-end credit (d) Consumer (e) Consummation (f) Consumer report (g) Consumer reporting agency (h) Credit (i) Creditor (j) Credit card (k) Credit card issuer card issuer, (l) Credit score (m) Firm offer of credit (n) Material terms (1)(i) Except as otherwise provided in paragraphs (n)(1)(ii) and (n)(3) of this section, in the case of credit extended under an open-end credit plan, the annual percentage rate required to be disclosed under 12 CFR 1026.6(a)(1)(ii) or 12 CFR 1026.6(b)(2)(i), excluding any temporary initial rate that is lower than the rate that will apply after the temporary rate expires, any penalty rate that will apply upon the occurrence of one or more specific events, such as a late payment or an extension of credit that exceeds the credit limit, and any fixed annual percentage rate option for a home equity line of credit; (ii) In the case of a credit card (other than a credit card that is used to access a home equity line of credit or a charge card), the annual percentage rate required to be disclosed under 12 CFR 1026.6(b)(2)(i) that applies to purchases (“purchase annual percentage rate”) and no other annual percentage rate, or in the case of a credit card that has no purchase annual percentage rate, the annual percentage rate that varies based on information in a consumer report and that has the most significant financial impact on consumers; (2) In the case of closed-end credit, the annual percentage rate required to be disclosed under 12 CFR 1026.17(c) and 1026.18(e); and (3) In the case of credit for which there is no annual percentage rate, the financial term that varies based on information in a consumer report and that has the most significant financial impact on consumers, such as a deposit required in connection with credit extended by a telephone company or utility or an annual membership fee for a charge card. (o) Materially less favorable (p) Open-end credit plan (q) Person § 1022.72 General requirements for risk-based pricing notices. (a) In general. (1) Uses a consumer report in connection with an application for, or a grant, extension, or other provision of, credit to that consumer that is primarily for personal, family, or household purposes; and (2) Based in whole or in part on the consumer report, grants, extends, or otherwise provides credit to that consumer on material terms that are materially less favorable than the most favorable material terms available to a substantial proportion of consumers from or through that person. (b) Determining which consumers must receive a notice. (1) Credit score proxy method In general. (A) Determining the credit score (hereafter referred to as the “cutoff score”) that represents the point at which approximately 40 percent of the consumers to whom it grants, extends, or provides credit have higher credit scores and approximately 60 percent of the consumers to whom it grants, extends, or provides credit have lower credit scores; and (B) Providing a risk-based pricing notice to each consumer to whom it grants, extends, or provides credit whose credit score is lower than the cutoff score. (ii) Alternative to the 40/60 cutoff score determination. (iii) Determining the cutoff score Sampling approach. (B) Secondary source approach in limited circumstances. (C) Recalculation of cutoff scores. (D) Use of two or more credit scores. e.g., (iv) Credit score not available. (v) Examples. (B) A credit card issuer engages in risk-based pricing, and the annual percentage rates it offers to consumers are based in whole or in part on a credit score. The credit card issuer takes a representative sample of the consumers to whom it issued credit cards over the preceding six months. The credit card issuer determines that approximately 80 percent of the sampled consumers received credit at its lowest annual percentage rate, and 20 percent received credit at a higher annual percentage rate. Approximately 80 percent of the sampled consumers have a credit score at or above 750 (on a scale of 350 to 850), and 20 percent have a credit score below 750. Thus, the card issuer selects 750 as its cutoff score. A consumer applies to the credit card issuer for a credit card. The card issuer obtains a credit score for the consumer. The consumer's credit score is 740. Since the consumer's 740 credit score falls below the 750 cutoff score, the credit card issuer must provide a risk-based pricing notice to the consumer. (C) An auto lender engages in risk-based pricing, obtains credit scores from one of the nationwide consumer reporting agencies, and uses the credit score proxy method to determine which consumers must receive a risk-based pricing notice. A consumer applies to the auto lender for credit to finance the purchase of an automobile. A credit score about that consumer is not available from the consumer reporting agency from which the lender obtains credit scores. The lender nevertheless grants, extends, or provides credit to the consumer. The lender must provide a risk-based pricing notice to the consumer. (2) Tiered pricing method In general. (ii) Four or fewer pricing tiers. (iii) Five or more pricing tiers. (c) Application to credit card issuers In general. (i) A consumer applies for a credit card either in connection with an application program, such as a direct-mail offer or a take-one application, or in response to a solicitation under 12 CFR 1026.60, and more than a single possible purchase annual percentage rate may apply under the program or solicitation; and (ii) Based in whole or in part on a consumer report, the credit card issuer provides a credit card to the consumer with an annual percentage rate referenced in § 1022.71(n)(1)(ii) that is greater than the lowest annual percentage rate referenced in § 1022.71(n)(1)(ii) available in connection with the application or solicitation. (2) No requirement to compare different offers. (i) The consumer applies for a credit card for which the card issuer provides a single annual percentage rate referenced in § 1022.71(n)(1)(ii), excluding a temporary initial rate that is lower than the rate that will apply after the temporary rate expires and a penalty rate that will apply upon the occurrence of one or more specific events, such as a late payment or an extension of credit that exceeds the credit limit; or (ii) The credit card issuer offers the consumer the lowest annual percentage rate referenced in § 1022.71(n)(1)(ii) available under the credit card offer for which the consumer applied, even if a lower annual percentage rate referenced in § 1022.71(n)(1)(ii) is available under a different credit card offer issued by the card issuer. (3) Examples. (ii) The same facts as in the example in paragraph (c)(3)(i) of this section, except that the card issuer provides a credit card to the consumer at a purchase annual percentage rate of 10 percent. The card issuer is not required to provide a risk-based pricing notice to the consumer even if, under a different credit card solicitation, that consumer or other consumers might qualify for a purchase annual percentage rate of 8 percent. (d) Account review In general. (i) Uses a consumer report in connection with a review of credit that has been extended to the consumer; and (ii) Based in whole or in part on the consumer report, increases the annual percentage rate (the annual percentage rate referenced in § 1022.71(n)(1)(ii) in the case of a credit card). (2) Example. § 1022.73 Content, form, and timing of risk-based pricing notices. (a) Content of the notice In general. (i) A statement that a consumer report (or credit report) includes information about the consumer's credit history and the type of information included in that history; (ii) A statement that the terms offered, such as the annual percentage rate, have been set based on information from a consumer report; (iii) A statement that the terms offered may be less favorable than the terms offered to consumers with better credit histories; (iv) A statement that the consumer is encouraged to verify the accuracy of the information contained in the consumer report and has the right to dispute any inaccurate information in the report; (v) The identity of each consumer reporting agency that furnished a consumer report used in the credit decision; (vi) A statement that Federal law gives the consumer the right to obtain a copy of a consumer report from the consumer reporting agency or agencies identified in the notice without charge for 60 days after receipt of the notice; (vii) A statement informing the consumer how to obtain a consumer report from the consumer reporting agency or agencies identified in the notice and providing contact information (including a toll-free telephone number, where applicable) specified by the consumer reporting agency or agencies; (viii) A statement directing consumers to the Web site of the Bureau to obtain more information about consumer reports; and (ix) If a credit score of the consumer to whom a person grants, extends, or otherwise provides credit is used in setting the material terms of credit: (A) A statement that a credit score is a number that takes into account information in a consumer report, that the consumer's credit score was used to set the terms of credit offered, and that a credit score can change over time to reflect changes in the consumer's credit history; (B) The credit score used by the person in making the credit decision; (C) The range of possible credit scores under the model used to generate the credit score; (D) All of the key factors that adversely affected the credit score, which shall not exceed four key factors, except that if one of the key factors is the number of enquiries made with respect to the consumer report, the number of key factors shall not exceed five; (E) The date on which the credit score was created; and (F) The name of the consumer reporting agency or other person that provided the credit score. (2) Account review. (i) A statement that a consumer report (or credit report) includes information about the consumer's credit history and the type of information included in that credit history; (ii) A statement that the person has conducted a review of the account using information from a consumer report; (iii) A statement that as a result of the review, the annual percentage rate on the account has been increased based on information from a consumer report; (iv) A statement that the consumer is encouraged to verify the accuracy of the information contained in the consumer report and has the right to dispute any inaccurate information in the report; (v) The identity of each consumer reporting agency that furnished a consumer report used in the account review; (vi) A statement that Federal law gives the consumer the right to obtain a copy of a consumer report from the consumer reporting agency or agencies identified in the notice without charge for 60 days after receipt of the notice; (vii) A statement informing the consumer how to obtain a consumer report from the consumer reporting agency or agencies identified in the notice and providing contact information (including a toll-free telephone number, where applicable) specified by the consumer reporting agency or agencies; (viii) A statement directing consumers to the Web site of the Bureau to obtain more information about consumer reports; and (ix) If a credit score of the consumer whose extension of credit is under review is used in increasing the annual percentage rate: (A) A statement that a credit score is a number that takes into account information in a consumer report, that the consumer's credit score was used to set the terms of credit offered, and that a credit score can change over time to reflect changes in the consumer's credit history; (B) The credit score used by the person in making the credit decision; (C) The range of possible credit scores under the model used to generate the credit score; (D) All of the key factors that adversely affected the credit score, which shall not exceed four key factors, except that if one of the key factors is the number of enquires made with respect to the consumer report, the number of key factors shall not exceed five; (E) The date on which the credit score was created; and (F) The name of the consumer reporting agency or other person that provided the credit score. (b) Form of the notice In general. (i) Clear and conspicuous; and (ii) Provided to the consumer in oral, written, or electronic form. (2) Model forms. (c) Timing General. (i) In the case of a grant, extension, or other provision of closed-end credit, before consummation of the transaction, but not earlier than the time the decision to approve an application for, or a grant, extension, or other provision of, credit, is communicated to the consumer by the person required to provide the notice; (ii) In the case of credit granted, extended, or provided under an open-end credit plan, before the first transaction is made under the plan, but not earlier than the time the decision to approve an application for, or a grant, extension, or other provision of, credit is communicated to the consumer by the person required to provide the notice; or (iii) In the case of a review of credit that has been extended to the consumer, at the time the decision to increase the annual percentage rate (annual percentage rate referenced in § 1022.71(n)(1)(ii) in the case of a credit card) based on a consumer report is communicated to the consumer by the person required to provide the notice, or if no notice of the increase in the annual percentage rate is provided to the consumer prior to the effective date of the change in the annual percentage rate (to the extent permitted by law), no later than five days after the effective date of the change in the annual percentage rate. (2) Application to certain automobile lending transactions. (i) Provides a notice described in §§ 1022.72(a), 1022.74(e), or 1022.74(f) to the consumer within the time periods set forth in paragraph (c)(1)(i) of this section, § 1022.74(e)(3), or § 1022.74(f)(4), as applicable; or (ii) Arranges to have the auto dealer or other party provide a notice described in §§ 1022.72(a), 1022.74(e), or 1022.74(f) to the consumer on its behalf within the time periods set forth in paragraph (c)(1)(i) of this section, § 1022.74(e)(3), or § 1022.74(f)(4), as applicable, and maintains reasonable policies and procedures to verify that the auto dealer or other party provides such notice to the consumer within the applicable time periods. If the person arranges to have the auto dealer or other party provide a notice described in § 1022.74(e), the person's obligation is satisfied if the consumer receives a notice containing a credit score obtained by the dealer or other party, even if a different credit score is obtained and used by the person on whose behalf the notice is provided. (3) Timing requirements for contemporaneous purchase credit. (i) The time of the first mailing by the person to the consumer after the decision is made to approve the grant, extension, or other provision of open-end credit, such as in a mailing containing the account agreement or a credit card; or (ii) Within 30 days after the decision to approve the grant, extension, or other provision of credit. (d) Multiple credit scores In general. (2) Examples. (ii) A person that uses consumer reports to set the material terms of automobile loans granted, extended, or provided to consumers regularly requests credit scores from several consumer reporting agencies, each of which it uses in an underwriting program in order to determine the material terms it will offer to the consumer. That person may choose one of these scores to include in the notices described in paragraph (a)(1) and (2) of this section. § 1022.74 Exceptions. (a) Application for specific terms In general. (2) Example. before, after, (b) Adverse action notice. (c) Prescreened solicitations In general. (i) Obtains a consumer report that is a prescreened list as described in section 604(c)(2) of the FCRA; and (ii) Uses the consumer report for the purpose of making a firm offer of credit to the consumer. (2) More favorable material terms. (3) Example. (d) Loans secured by residential real property—credit score disclosure In general. (i) The consumer requests from the person an extension of credit that is or will be secured by one to four units of residential real property; and (ii) The person provides to each consumer described in paragraph (d)(1)(i) of this section a notice that contains the following: (A) A statement that a consumer report (or credit report) is a record of the consumer's credit history and includes information about whether the consumer pays his or her obligations on time and how much the consumer owes to creditors; (B) A statement that a credit score is a number that takes into account information in a consumer report and that a credit score can change over time to reflect changes in the consumer's credit history; (C) A statement that the consumer's credit score can affect whether the consumer can obtain credit and what the cost of that credit will be; (D) The information required to be disclosed to the consumer pursuant to section 609(g) of the FCRA; (E) The distribution of credit scores among consumers who are scored under the same scoring model that is used to generate the consumer's credit score using the same scale as that of the credit score that is provided to the consumer, presented in the form of a bar graph containing a minimum of six bars that illustrates the percentage of consumers with credit scores within the range of scores reflected in each bar or by other clear and readily understandable graphical means, or a clear and readily understandable statement informing the consumer how his or her credit score compares to the scores of other consumers. Use of a graph or statement obtained from the person providing the credit score that meets the requirements of this paragraph (d)(1)(ii)(E) is deemed to comply with this requirement; (F) A statement that the consumer is encouraged to verify the accuracy of the information contained in the consumer report and has the right to dispute any inaccurate information in the report; (G) A statement that Federal law gives the consumer the right to obtain copies of his or her consumer reports directly from the consumer reporting agencies, including a free report from each of the nationwide consumer reporting agencies once during any 12-month period; (H) Contact information for the centralized source from which consumers may obtain their free annual consumer reports; and (I) A statement directing consumers to the Web site of the Bureau to obtain more information about consumer reports. (2) Form of the notice. (i) Clear and conspicuous; (ii) Provided on or with the notice required by section 609(g) of the FCRA; (iii) Segregated from other information provided to the consumer, except for the notice required by section 609(g) of the FCRA; and (iv) Provided to the consumer in writing and in a form that the consumer may keep. (3) Timing. (4) Multiple credit scores In general. (ii) Examples. (B) A person that uses consumer reports to set the material terms of mortgage credit granted, extended, or provided to consumers regularly requests credit scores from several consumer reporting agencies, each of which it uses in an underwriting program in order to determine the material terms it will offer to the consumer. That person may choose one of these scores to include in the notice described in paragraph (d)(1)(ii) of this section. (5) Model form. (e) Other extensions of credit—credit score disclosure In general. (i) The consumer requests from the person an extension of credit other than credit that is or will be secured by one to four units of residential real property; and (ii) The person provides to each consumer described in paragraph (e)(1)(i) of this section a notice that contains the following: (A) A statement that a consumer report (or credit report) is a record of the consumer's credit history and includes information about whether the consumer pays his or her obligations on time and how much the consumer owes to creditors; (B) A statement that a credit score is a number that takes into account information in a consumer report and that a credit score can change over time to reflect changes in the consumer's credit history; (C) A statement that the consumer's credit score can affect whether the consumer can obtain credit and what the cost of that credit will be; (D) The current credit score of the consumer or the most recent credit score of the consumer that was previously calculated by the consumer reporting agency for a purpose related to the extension of credit; (E) The range of possible credit scores under the model used to generate the credit score; (F) The distribution of credit scores among consumers who are scored under the same scoring model that is used to generate the consumer's credit score using the same scale as that of the credit score that is provided to the consumer, presented in the form of a bar graph containing a minimum of six bars that illustrates the percentage of consumers with credit scores within the range of scores reflected in each bar, or by other clear and readily understandable graphical means, or a clear and readily understandable statement informing the consumer how his or her credit score compares to the scores of other consumers. Use of a graph or statement obtained from the person providing the credit score that meets the requirements of this paragraph (e)(1)(ii)(F) is deemed to comply with this requirement; (G) The date on which the credit score was created; (H) The name of the consumer reporting agency or other person that provided the credit score; (I) A statement that the consumer is encouraged to verify the accuracy of the information contained in the consumer report and has the right to dispute any inaccurate information in the report; (J) A statement that Federal law gives the consumer the right to obtain copies of his or her consumer reports directly from the consumer reporting agencies, including a free report from each of the nationwide consumer reporting agencies once during any 12-month period; (K) Contact information for the centralized source from which consumers may obtain their free annual consumer reports; and (L) A statement directing consumers to the Web site of the Bureau to obtain more information about consumer reports. (2) Form of the notice. (i) Clear and conspicuous; (ii) Segregated from other information provided to the consumer; and (iii) Provided to the consumer in writing and in a form that the consumer may keep. (3) Timing. (4) Multiple credit scores. In general. (ii) Examples. (5) Model form. (f) Credit score not available In general. (i) Regularly obtains credit scores from a consumer reporting agency and provides credit score disclosures to consumers in accordance with paragraphs (d) or (e) of this section, but a credit score is not available from the consumer reporting agency from which the person regularly obtains credit scores for a consumer to whom the person grants, extends, or provides credit; (ii) Does not obtain a credit score from another consumer reporting agency in connection with granting, extending, or providing credit to the consumer; and (iii) Provides to the consumer a notice that contains the following: (A) A statement that a consumer report (or credit report) includes information about the consumer's credit history and the type of information included in that history; (B) A statement that a credit score is a number that takes into account information in a consumer report and that a credit score can change over time in response to changes in the consumer's credit history; (C) A statement that credit scores are important because consumers with higher credit scores generally obtain more favorable credit terms; (D) A statement that not having a credit score can affect whether the consumer can obtain credit and what the cost of that credit will be; (E) A statement that a credit score about the consumer was not available from a consumer reporting agency, which must be identified by name, generally due to insufficient information regarding the consumer's credit history; (F) A statement that the consumer is encouraged to verify the accuracy of the information contained in the consumer report and has the right to dispute any inaccurate information in the consumer report; (G) A statement that Federal law gives the consumer the right to obtain copies of his or her consumer reports directly from the consumer reporting agencies, including a free consumer report from each of the nationwide consumer reporting agencies once during any 12-month period; (H) The contact information for the centralized source from which consumers may obtain their free annual consumer reports; and (I) A statement directing consumers to the Web site of the Bureau to obtain more information about consumer reports. (2) Example. (3) Form of the notice. (i) Clear and conspicuous; (ii) Segregated from other information provided to the consumer; and (iii) Provided to the consumer in writing and in a form that the consumer may keep. (4) Timing. (5) Model form. § 1022.75 Rules of construction. For purposes of this subpart, the following rules of construction apply: (a) One notice per credit extension. (b) Multi-party transactions Initial creditor. (2) Purchasers or assignees. (3) Example. (c) Multiple consumers Risk-based pricing notices. (2) Credit score disclosure notices. (3) Examples. (ii) Two consumers jointly apply for credit with a creditor. The two consumers reside at the same address. The creditor obtains credit scores on each of the two consumer applicants. The creditor grants credit to the consumers. The creditor provides credit score disclosure notices to satisfy its obligations under this subpart. Even though the two consumers reside at the same address, the creditor must provide a separate credit score disclosure notice to each of the consumers. Each notice must contain only the credit score of the consumer to whom the notice is provided. Subpart I—Duties of Users of Consumer Reports Regarding Identity Theft §§ 1022.80-1022.81 [Reserved] § 1022.82 Duties of users regarding address discrepancies. (a) Scope. (b) Definition. notice of address discrepancy (c) Reasonable belief Requirement to form a reasonable belief. (2) Examples of reasonable policies and procedures. (A) Obtains and uses to verify the consumer's identity in accordance with the requirements of the Customer Identification Program (CIP) rules implementing 31 U.S.C. 5318(l) (31 CFR 1020.220); (B) Maintains in its own records, such as applications, change of address notifications, other customer account records, or retained CIP documentation; or (C) Obtains from third-party sources; or (ii) Verifying the information in the consumer report provided by the consumer reporting agency with the consumer. (d) Consumer's address Requirement to furnish consumer's address to a consumer reporting agency. (i) Can form a reasonable belief that the consumer report relates to the consumer about whom the user requested the report; (ii) Establishes a continuing relationship with the consumer; and (iii) Regularly and in the ordinary course of business furnishes information to the consumer reporting agency from which the notice of address discrepancy relating to the consumer was obtained. (2) Examples of confirmation methods. (i) Verifying the address with the consumer about whom it has requested the report; (ii) Reviewing its own records to verify the address of the consumer; (iii) Verifying the address through third-party sources; or (iv) Using other reasonable means. (3) Timing. The policies and procedures developed in accordance with paragraph (d)(1) of this section must provide that the user will furnish the consumer's address that the user has reasonably confirmed is accurate to the consumer reporting agency described in 15 U.S.C. 1681a(p) as part of the information it regularly furnishes for the reporting period in which it establishes a relationship with the consumer. Subparts J-L [Reserved] Subpart M—Duties of Consumer Reporting Agencies Regarding Identity Theft § 1022.120 [Reserved] § 1022.121 Active duty alerts. (a) Duration. § 1022.122 [Reserved] § 1022.123 Appropriate proof of identity. (a) Consumer reporting agencies shall develop and implement reasonable requirements for what information consumers shall provide to constitute proof of identity for purposes of sections 605A, 605B, and 609(a)(1) of the FCRA. In developing these requirements, the consumer reporting agencies must: (1) Ensure that the information is sufficient to enable the consumer reporting agency to match consumers with their files; and (2) Adjust the information to be commensurate with an identifiable risk of harm arising from misidentifying the consumer. (b) Examples of information that might constitute reasonable information requirements for proof of identity are provided for illustrative purposes only, as follows: (1) Consumer file match. (2) Additional proof of identity. §§ 1022.124-1022.129 [Reserved] Subpart N—Duties of Consumer Reporting Agencies Regarding Disclosures to Consumers § 1022.130 Definitions. For purposes of this subpart, the following definitions apply: (a) Annual file disclosure (b) Associated consumer reporting agency (c) Consumer report (d) Consumer reporting agency (e) Extraordinary request volume i.e., (f) File disclosure (g) High request volume i.e., (h) Nationwide consumer reporting agency (i) Nationwide specialty consumer reporting agency (j) Request method §§ 1022.131-1022.135 [Reserved] § 1022.136 Centralized source for requesting annual file disclosures from nationwide consumer reporting agencies. (a) Purpose. (b) Establishment and operation. (1) Enable consumers to request annual file disclosures by any of the following request methods, at the consumers' option: (i) A single, dedicated Web site, (ii) A single, dedicated toll-free telephone number; and (iii) Mail directed to a single address; (2) Be designed, funded, implemented, maintained, and operated in a manner that: (i) Has adequate capacity to accept requests from the reasonably anticipated volume of consumers contacting the centralized source through each request method, as determined in accordance with Paragraph (c) of this section; (ii) Collects only as much personally identifiable information as is reasonably necessary to properly identify the consumer as required under the FCRA, section 610(a)(1), 15 U.S.C. 1681h(a)(1), and other applicable laws and regulations, and to process the transaction(s) requested by the consumer; (iii) Provides information through the centralized source Web site and telephone number regarding how to make a request by all request methods required under paragraph (b)(1) of this section; and (iv) Provides clear and easily understandable information and instructions to consumers, including, but not necessarily limited to: (A) Providing information on the progress of the consumer's request while the consumer is engaged in the process of requesting a file disclosure; (B) For a Web site request method, providing access to a “help” or “frequently asked questions” screen, which includes specific information that consumers might reasonably need to request file disclosures, the answers to questions that consumers might reasonably ask, and instructions whereby a consumer may file a complaint with the centralized source and with the Bureau; (C) In the event that a consumer requesting a file disclosure through the centralized source cannot be properly identified in accordance with the FCRA, section 610(a)(1), 15 U.S.C. 1681h(a)(1), and other applicable laws and regulations, providing a statement that the consumers' identity cannot be verified; and directions on how to complete the request, including what additional information or documentation will be required to complete the request, and how to submit such information; and (D) A statement indicating that the consumer has reached the Web site or telephone number for ordering free annual credit reports as required by Federal law; and (3) Make available to consumers a standardized form established jointly by the nationwide consumer reporting agencies, which consumers may use to make a request for an annual file disclosure, either by mail or on the Web site required under paragraph (b)(1) of this section, from the centralized source required by this part. The form provided at appendix L to part 1022, may be used to comply with this section. (c) Requirement to anticipate. (1) The contingency plans required by this section shall include reasonable measures to minimize the impact of such circumstances on the operation of the centralized source and on consumers contacting, or attempting to contact, the centralized source. (i) Such reasonable measures to minimize impact shall include, but are not necessarily limited to: (A) The extent reasonably practicable under the circumstances, providing information to consumers on how to use another available request method; (B) The extent reasonably practicable under the circumstances, communicating, to a consumer who attempts but is unable to make a request, the fact that a condition exists that has precluded the centralized source from accepting all requests, and the period of time after which the centralized source is reasonably anticipated to be able to accept the consumers' request for an annual file disclosure; and (C) Taking all reasonable steps to restore the centralized source to normal operating status as quickly as reasonably practicable under the circumstances. (ii) Reasonable measures to minimize impact may also include, as appropriate, collecting request information but declining to accept the request for processing until a reasonable later time, provided that the consumer is clearly and prominently informed, to the extent reasonably practicable under the circumstances, of when the request will be accepted for processing. (2) A nationwide consumer reporting agency shall not be deemed in violation of paragraph (b)(2)(i) of this section if a centralized source request method is unavailable to accept requests for a reasonable period of time for purposes of conducting maintenance on the request method, provided that the other required request methods remain available during such time. (d) Disclosures required. (e) High request volume and extraordinary request volume High request volume. (i) Collects all consumer request information and delays accepting the request for processing until a reasonable later time; and (ii) Clearly and prominently informs the consumer of when the request will be accepted for processing. (2) Extraordinary request volume. (f) Information use and disclosure. (1) To provide the annual file disclosure or other disclosure required under the FCRA requested by the consumer; (2) To process a transaction requested by the consumer at the same time as a request for annual file disclosure or other disclosure; (3) To comply with applicable legal requirements, including those imposed by the FCRA and this part; and (4) To update personally identifiable information already maintained by the nationwide consumer reporting agency for the purpose of providing consumer reports, provided that the nationwide consumer reporting agency uses and discloses the updated personally identifiable information subject to the same restrictions that would apply, under any applicable provision of law or regulation, to the information updated or replaced. (g) Communications provided through centralized source. (i) In the case of requests made by mail or telephone, the consumer “has obtained his or her annual file disclosure” when the file disclosure is mailed, and the nationwide consumer reporting agency may include advertising for other products or services with the file disclosure. (ii) In the case of requests made through the centralized source Web site, the consumer “has obtained his or her annual file disclosure” when the file disclosure is delivered to the consumer through the Internet, and the nationwide consumer reporting agency may include advertising for other products or services with the file disclosure. (2) Any communications, instructions, or permitted advertising or marketing shall not interfere with, detract from, contradict, or otherwise undermine the purpose of the centralized source stated in Paragraph (a) of this section. (3) Examples of interfering, detracting, inconsistent, and/or undermining communications include: (i) Centralized source materials that represent, expressly or by implication, that a consumer must purchase a paid product or service in order to receive or to understand the annual file disclosure; (ii) Centralized source materials that represent, expressly or by implication, that annual file disclosures are not free, or that obtaining an annual file disclosure will have a negative impact on the consumers' credit standing; and (iii) Centralized source materials that falsely represent, expressly or by implication, that a product or service offered ancillary to receipt of a file disclosure, such as a credit score or credit monitoring service, is free, or fail to clearly and prominently disclose that consumers must cancel a service, advertised as free for an initial period of time, to avoid being charged, if such is the case. (h) Other practices prohibited through the centralized source. (1) Contain hyperlinks to commercial or proprietary Web sites until after the consumer has obtained his or her annual file disclosure, except for technical transfers to a Web page on which consumers can request their free annual file disclosure; provided, however, that no hyperlinks to commercial Web sites shall appear on the initial page of the centralized source. (2) Require consumers to set up an account in connection with obtaining an annual file disclosure; or (3) Ask or require consumers to agree to terms or conditions in connection with obtaining an annual file disclosure. § 1022.137 Streamlined process for requesting annual file disclosures from nationwide specialty consumer reporting agencies. (a) Streamlined process requirements. (1) Enable consumers to request annual file disclosures by a toll-free telephone number that: (i) Provides clear and prominent instructions for requesting disclosures by any additional available request methods, that do not interfere with, detract from, contradict, or otherwise undermine the ability of consumers to obtain annual file disclosures through the streamlined process required by this part; (ii) Is published, in conjunction with all other published numbers for the nationwide specialty consumer reporting agency, in any telephone directory in which any telephone number for the nationwide specialty consumer reporting agency is published; and(iii) Is clearly and prominently posted on any Web site owned or maintained by the nationwide specialty consumer reporting agency that is related to consumer reporting, along with instructions for requesting disclosures by any additional available request methods; and (2) Be designed, funded, implemented, maintained, and operated in a manner that: (i) Has adequate capacity to accept requests from the reasonably anticipated volume of consumers contacting the nationwide specialty consumer reporting agency through the streamlined process, as determined in compliance with Paragraph (b) of this section; (ii) Collects only as much personal information as is reasonably necessary to properly identify the consumer as required under the FCRA, section 610(a)(1), 15 U.S.C. 1681h(a)(1), and other applicable laws and regulations; and (iii) Provides clear and easily understandable information and instructions to consumers, including but not necessarily limited to: (A) Providing information on the status of the consumers request while the consumer is in the process of making a request; (B) For a Web site request method, providing access to a “help” or “frequently asked questions” screen, which includes more specific information that consumers might reasonably need to order their file disclosure, the answers to questions that consumers might reasonably ask, and instructions whereby a consumer may file a complaint with the nationwide specialty consumer reporting agency and with the Bureau; and (C) In the event that a consumer requesting a file disclosure cannot be properly identified in accordance with the FCRA, section 610(a)(1), 15 U.S.C. 1681h(a)(1), and other applicable laws and regulations, providing a statement that the consumers identity cannot be verified; and directions on how to complete the request, including what additional information or documentation will be required to complete the request, and how to submit such information. (b) Requirement to anticipate. (1) The contingency plans required by this section shall include reasonable measures to minimize the impact of such circumstances on the operation of the streamlined process and on consumers contacting, or attempting to contact, the nationwide specialty consumer reporting agency through the streamlined process. (i) Such reasonable measures to minimize impact shall include, but are not necessarily limited to: (A) To the extent reasonably practicable under the circumstances, providing information to consumers on how to use another available request method; (B) To the extent reasonably practicable under the circumstances, communicating, to a consumer who attempts but is unable to make a request, the fact that a condition exists that has precluded the nationwide specialty consumer reporting agency from accepting all requests, and the period of time after which the agency is reasonably anticipated to be able to accept the consumers request for an annual file disclosure; and (C) Taking all reasonable steps to restore the streamlined process to normal operating status as quickly as reasonably practicable under the circumstances. (ii) Measures to minimize impact may also include, as appropriate, collecting request information but declining to accept the request for processing until a reasonable later time, provided that the consumer is clearly and prominently informed, to the extent reasonably practicable under the circumstances, of when the request will be accepted for processing. (2) A nationwide specialty consumer reporting agency shall not be deemed in violation of paragraph (a)(2)(i) of this section if the toll-free telephone number required by this part is unavailable to accept requests for a reasonable period of time for purposes of conducting maintenance on the request method, provided that the nationwide specialty consumer reporting agency makes other request methods available to consumers during such time. (c) High request volume and extraordinary request volume High request volume. (i) Collects all consumer request information and delays accepting the request for processing until a reasonable later time; and (ii) Clearly and prominently informs the consumer of when the request will be accepted for processing. (2) Extraordinary request volume. (d) Information use and disclosure. (1) To provide the annual file disclosure or other disclosure required under the FCRA requested by the consumer; (2) To process a transaction requested by the consumer at the same time as a request for annual file disclosure or other disclosure; (3) To comply with applicable legal requirements, including those imposed by the FCRA and this part; and (4) To update personally identifiable information already maintained by the nationwide specialty consumer reporting agency for the purpose of providing consumer reports, provided that the nationwide specialty consumer reporting agency uses and discloses the updated personally identifiable information subject to the same restrictions that would apply, under any applicable provision of law or regulation, to the information updated or replaced. (e) Requirement to accept or redirect requests. (1) Accept the consumers request; or (2) Instruct the consumer how to make the request using the streamlined process required by this part. § 1022.138 Prevention of deceptive marketing of free credit reports. (a) For purposes of this section: (1) AnnualCreditReport.com and (877) 322-8228 (2) Free credit report (3) General requirements for disclosures. (i) All disclosures shall be prominent; (ii) All disclosures shall be made in the same language as that principally used in the advertisement; (iii) Visual disclosures shall be easily readable; in a high degree of contrast from the immediate background on which it appears; in a format so that the disclosure is distinct from other text, such as inside a border; in a distinct type style, such as bold; and parallel to the base of the advertisement or screen; (iv) Audio disclosures shall be delivered in a slow and deliberate manner and in a reasonably understandable volume and pitch; (v) Program-length television, radio, or Internet-hosted multimedia advertisement disclosures shall be made at the beginning, near the middle, and at the end of the advertisement; and (vi) Nothing contrary to, inconsistent with, or that undermines the required disclosures shall be used in any advertisement in any medium, nor shall any audio, visual, or print technique be used that is likely to detract significantly from the communication of any disclosure. (b) Medium-specific disclosures. (1) Television advertisements. (ii) The disclosure shall appear at the same time in the audio and visual part of the advertisement. The visual disclosure shall be at least four percent of the vertical picture height and appear for a minimum of four seconds. (2) Radio advertisements. (3) Print advertisements. AnnualCreditReport.com (4) Web sites. (i) The first element of the disclosure shall be a header that is centered and shall consist of the following text: “THIS NOTICE IS REQUIRED BY LAW. Read more at consumerfinance.gov/learnmore. consumerfinance.gov/learnmore www.ftc.gov (ii) The second element of the disclosure shall appear below the header required by paragraph (b)(4)(i) and shall consist of the following text: “You have the right to a free credit report from AnnualCreditReport.com AnnualCreditReport.com consumerfinance.gov/learnmore (iii) The color of the text required by § 1022.138(b)(4)(i) and (ii) shall be in a high degree of contrast with the background color of the box; (iv) The background of the box shall be a solid color in a high degree of contrast from the background of the page and the color shall not appear elsewhere on the page; (v) The third element of the disclosure shall appear below the text required by paragraph (b)(4)(ii) and shall be an operational hyperlink to AnnualCreditReport.com (vi) Each character of the text required in paragraph (b)(4)(ii) and (v) of this section shall be, at minimum, the same size as the largest character on the page, including characters in an image or graphic banner; (vii) Each character of the disclosure shall be displayed as plain text and in a sans serif font, such as Arial; and (viii) The space between each element of the disclosure required in paragraph (b)(i), (ii), and (v) of this section shall be, at minimum, the same size as the largest character on the page, including characters in an image or graphic banner. The space between the boundaries of the box and the text or button required in § 1022.138(b)(i), (ii), and (v) shall be, at minimum, twice the size of the vertical height of the largest character on the page, including characters in an image or graphic banner. (5) Internet-hosted multimedia advertising. AnnualCreditReport.com (6) Telephone requests. (7) Telemarketing solicitations. § 1022.139 [Reserved] Subpart O—Miscellaneous Duties of Consumer Reporting Agencies § 1022.140 Prohibition against circumventing or evading treatment as a consumer reporting agency. (a) A consumer reporting agency shall not circumvent or evade treatment as a “consumer reporting agency that compiles and maintains files on consumers on a nationwide basis,” as defined under section 603(p) of the FCRA, 15 U.S.C. 1681a(p), by any means, including, but not limited to: (1) Corporate organization, reorganization, structure, or restructuring, including merger, acquisition, dissolution, divestiture, or asset sale of a consumer reporting agency; or (2) Maintaining or merging public record and credit account information in a manner that is substantially equivalent to that described in Paragraphs (1) and (2) of section 603(p) of the FCRA, 15 U.S.C. 1681a(p). (b) Examples: (1) Circumvention through reorganization by data type. (2) Circumvention through reorganization by regional operations. (3) Circumvention by a newly formed entity. (4) Bona fide, arm's length transaction with unaffiliated party. (c) Limitation on applicability. et seq. § 1022.141 Reasonable charges for certain disclosures. Pursuant to section 612(f) of the FCRA, 15 U.S.C. 1681j(f), the charge imposed by a consumer reporting agency for a disclosure to the consumer pursuant to section 609 of the FCRA, 15 U.S.C. 1681g, shall not exceed the maximum allowable charge set by the Bureau. [84 FR 517, Jan. 31, 2019] § 1022.142 Prohibition on inclusion of adverse information in consumer reporting in cases of human trafficking. (a) Scope. (b) Definitions. (1) Appropriate proof of identity (2) Consumer report (3) Consumer reporting agency (4) Severe forms of trafficking in persons (5) Sex trafficking (6) Trafficking documentation (i) Victim determination. (A) Is of a determination that a consumer is a victim of trafficking made by a: ( 1 ( 2 (B) Is of a determination that a consumer is a victim of trafficking made by a court of competent jurisdiction or determination consisting of documents filed in a court of competent jurisdiction where a central issue in the case is whether the consumer is a victim of trafficking and the court has, at a minimum, affirmed the consumer's claim either by accepting certain pieces of evidence which are assumed to be true or finding that the there is no genuine dispute as to any material fact supporting a judgment in favor of the victim as a matter of law; or (C) Is of a signed statement by the consumer attesting that the consumer is a victim of trafficking if such statement or an accompanying document is signed or certified by a representative of an entity described in paragraph (b)(6)(i)(A) or (B) of this section. (ii) Identified adverse items of information. (A) Identifies any items of adverse information that should not be furnished by a consumer reporting agency because the items resulted from a severe form of trafficking in persons or sex trafficking of which the consumer is a victim; and (B) Must contain a preferred method for a consumer reporting agency to contact the consumer electronically or in writing such as an email address or physical address where mail can be received. A consumer reporting agency shall use only the consumer's preferred method of contact for communications under paragraphs (d), (e), and (f) of this section about the consumer's submission and shall not use the consumer's preferred contact information for any other purpose. (7) Victim of trafficking (c) Prohibition on inclusion of adverse information of trafficking victims. (d) Method of submission to consumer reporting agencies Mailing and website address. (2) Disclosing methods for submission. (3) Toll-free telephone number. (i) Allocate a reasonable amount of personnel to respond to consumer inquiries about the process for and status of a consumer's submission at the toll-free telephone number used for disputes under section 611 of the FCRA; and (ii) Establish a toll-free telephone number dedicated to addressing submissions from consumers seeking to block adverse items of information resulting from a severe form of trafficking in persons or sex trafficking under this section. (e) Block of adverse information resulting from trafficking Block upon receipt of the submission. (2) Requirement to notify the consumer and attempt to resolve deficiencies In general. (ii) Timing of final determination. (3) Final determination of the block. (4) Authority to decline or rescind a block. (f) Notification to consumer of actions taken in response to the consumer's submission In general. (2) Contents. (i) A statement that the review of the submission is completed; (ii) A statement of the outcome of the submission, including the reason(s) if the consumer reporting agency declined to block the adverse information identified by the consumer, or rescinded such a block, under paragraph (e)(4) of this section; (iii) A consumer report, provided at no cost to the consumer, that is based upon the consumer's revised file (if applicable) as a result of the consumer's submission; (iv) A description of the procedure used to determine the outcome; (v) A method for contacting the consumer reporting agency to appeal the determination or revise the submission to cure any of the noted reasons for declining to block the adverse information identified by the consumer; and (vi) The web page consumers can use to submit complaints to the Consumer Financial Protection Bureau. (g) Record retention. (h) Policies and procedures to ensure and maintain compliance. [87 FR 37723, June 24, 2022] Appendix A to Part 1022 [Reserved] Appendix B to Part 1022—Model Notices of Furnishing Negative Information a. Although use of the model notices is not required, a financial institution that is subject to section 623(a)(7) of the FCRA shall be deemed to be in compliance with the notice requirement in section 623(a)(7) of the FCRA if the institution properly uses the model notices in this appendix (as applicable). b. A financial institution may use Model Notice B-1 if the institution provides the notice prior to furnishing negative information to a nationwide consumer reporting agency. c. A financial institution may use Model Notice B-2 if the institution provides the notice after furnishing negative information to a nationwide consumer reporting agency. d. Financial institutions may make certain changes to the language or format of the model notices without losing the safe harbor from liability provided by the model notices. The changes to the model notices may not be so extensive as to affect the substance, clarity, or meaningful sequence of the language in the model notices. Financial institutions making such extensive revisions will lose the safe harbor from liability that this appendix provides. Acceptable changes include, for example, 1. Rearranging the order of the references to “late payment(s),” or “missed payment(s).” 2. Pluralizing the terms “credit bureau,” “credit report,” and “account.” 3. Specifying the particular type of account on which information may be furnished, such as “credit card account.” 4. Rearranging in Model Notice B-1 the phrases “information about your account” and “to credit bureaus” such that it would read “We may report to credit bureaus information about your account.” Model Notice B-1 We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report. Model Notice B-2 We have told a credit bureau about a late payment, missed payment or other default on your account. This information may be reflected in your credit report. Appendix C to Part 1022—Model Forms for Opt-Out Notices a. Although use of the model forms is not required, use of the model forms in this appendix (as applicable) complies with the requirement in section 624 of the Act for clear, conspicuous, and concise notices. b. Certain changes may be made to the language or format of the model forms without losing the protection from liability afforded by use of the model forms. These changes may not be so extensive as to affect the substance, clarity, or meaningful sequence of the language in the model forms. Persons making such extensive revisions will lose the safe harbor that this appendix provides. Acceptable changes include, for example: 1. Rearranging the order of the references to “your income,” “your account history,” and “your credit score.” 2. Substituting other types of information for “income,” “account history,” or “credit score” for accuracy, such as “payment history,” “credit history,” “payoff status,” or “claims history.” 3. Substituting a clearer and more accurate description of the affiliates providing or covered by the notice for phrases such as “the [ABC] group of companies,” including without limitation a statement that the entity providing the notice recently purchased the consumer's account. 4. Substituting other types of affiliates covered by the notice for “credit card,” “insurance,” or “securities” affiliates. 5. Omitting items that are not accurate or applicable. For example, if a person does not limit the duration of the opt-out period, the notice may omit information about the renewal notice. 6. Adding a statement informing consumers how much time they have to opt out before shared eligibility information may be used to make solicitations to them. 7. Adding a statement that the consumer may exercise the right to opt out at any time. 8. Adding the following statement, if accurate: “If you previously opted out, you do not need to do so again.” 9. Providing a place on the form for the consumer to fill in identifying information, such as his or her name and address. 10. Adding disclosures regarding the treatment of opt-outs by joint consumers to comply with § 1022.23(a)(2) of this part. C-1 Model Form for Initial Opt-out Notice (Single-Affiliate Notice) C-2 Model Form for Initial Opt-out Notice (Joint Notice) C-3 Model Form for Renewal Notice (Single-Affiliate Notice) C-4 Model Form for Renewal Notice (Joint Notice) C-5 Model Form for Voluntary “No Marketing” Notice C-1—Model Form for Initial Opt-Out Notice (Single-Affiliate Notice)—[Your Choice To Limit Marketing]/[Marketing Opt-Out] • [Name of Affiliate] is providing this notice. • [Optional: Federal law gives you the right to limit some but not all marketing from our affiliates. Federal law also requires us to give you this notice to tell you about your choice to limit marketing from our affiliates.] • You may limit our affiliates in the [ABC] group of companies, such as our [credit card, insurance, and securities] affiliates, from marketing their products or services to you based on your personal information that we collect and share with them. This information includes your [income], your [account history with us], and your [credit score]. • Your choice to limit marketing offers from our affiliates will apply [until you tell us to change your choice]/[for x years from when you tell us your choice]/[for at least 5 years from when you tell us your choice]. [Include if the opt-out period expires.] Once that period expires, you will receive a renewal notice that will allow you to continue to limit marketing offers from our affiliates for [another x years]/[at least another 5 years]. • [Include, if applicable, in a subsequent notice, including an annual notice, for consumers who may have previously opted out.] If you have already made a choice to limit marketing offers from our affiliates, you do not need to act again until you receive the renewal notice. To limit marketing offers, contact us [include all that apply]: • By telephone: 1-(877) ###-#### • On the Web: www.—.com • By mail: Check the box and complete the form below, and send the form to: [Company name] [Company address] —Do not allow your affiliates to use my personal information to market to me. C-2—Model Form for Initial Opt-Out Notice (Joint Notice)—[Your Choice To Limit Marketing]/[Marketing Opt-Out] • The [ABC group of companies] is providing this notice. • [Optional: Federal law gives you the right to limit some but not all marketing from the [ABC] companies. Federal law also requires us to give you this notice to tell you about your choice to limit marketing from the [ABC] companies.] • You may limit the [ABC] companies, such as the [ABC credit card, insurance, and securities] affiliates, from marketing their products or services to you based on your personal information that they receive from other [ABC] companies. This information includes your [income], your [account history], and your [credit score]. • Your choice to limit marketing offers from the [ABC] companies will apply [until you tell us to change your choice]/[for x years from when you tell us your choice]/[for at least 5 years from when you tell us your choice]. [Include if the opt-out period expires.] Once that period expires, you will receive a renewal notice that will allow you to continue to limit marketing offers from the [ABC] companies for [another x years]/[at least another 5 years]. • [Include, if applicable, in a subsequent notice, including an annual notice, for consumers who may have previously opted out.] If you have already made a choice to limit marketing offers from the [ABC] companies, you do not need to act again until you receive the renewal notice. To limit marketing offers, contact us [include all that apply]: • By telephone: 1-(877) ###-#### • On the Web: www.—.com • By mail: Check the box and complete the form below, and send the form to: [Company name] [Company address] —Do not allow any company [in the ABC group of companies] to use my personal information to market to me. C-3—Model Form for Renewal Notice (Single-Affiliate Notice)—[Renewing Your Choice To Limit Marketing]/[Renewing Your Marketing Opt-Out] • [Name of Affiliate] is providing this notice. • [Optional: Federal law gives you the right to limit some but not all marketing from our affiliates. Federal law also requires us to give you this notice to tell you about your choice to limit marketing from our affiliates.] • You previously chose to limit our affiliates in the [ABC] group of companies, such as our [credit card, insurance, and securities] affiliates, from marketing their products or services to you based on your personal information that we share with them. This information includes your [income], your [account history with us], and your [credit score]. • Your choice has expired or is about to expire. To renew your choice to limit marketing for [x] more years, contact us [include all that apply]: • By telephone: 1-(877) ###-#### • On the Web: www.—.com • By mail: Check the box and complete the form below, and send the form to: [Company name] [Company address] —Renew my choice to limit marketing for [x] more years. C-4—Model Form for Renewal Notice (Joint Notice)—[Renewing Your Choice To Limit Marketing]/[Renewing Your Marketing Opt-Out] • The [ABC group of companies] is providing this notice. • [Optional: Federal law gives you the right to limit some but not all marketing from the [ABC] companies. Federal law also requires us to give you this notice to tell you about your choice to limit marketing from the [ABC] companies.] • You previously chose to limit the [ABC] companies, such as the [ABC credit card, insurance, and securities] affiliates, from marketing their products or services to you based on your personal information that they receive from other ABC companies. This information includes your [income], your [account history], and your [credit score]. • Your choice has expired or is about to expire. To renew your choice to limit marketing for [x] more years, contact us [include all that apply]: • By telephone: 1-(877) ###-#### • On the Web: www.—.com • By mail: Check the box and complete the form below, and send the form to: [Company name] [Company address] —Renew my choice to limit marketing for [x] more years. C-5—Model Form for Voluntary “No Marketing” Notice—[Your Choice To Stop Marketing] • [Name of Affiliate] is providing this notice. • You may choose to stop all marketing from us and our affiliates. • [Your choice to stop marketing from us and our affiliates will apply until you tell us to change your choice.] To stop all marketing, contact us [include all that apply]: • By telephone: 1 (877) ###-#### • On the Web: www.—.com • By mail: Check the box and complete the form below, and send the form to: [Company name] [Company address] —Do not market to me. Appendix D to Part 1022—Model Forms for Firm Offers of Credit or Insurance In order to comply with § 1022.54, the following model notices may be used: (a) English language model notice Short notice. (2) Long notice. (b) Spanish language model notice Short notice. (2) Long notice. Appendix E to Part 1022—Interagency Guidelines Concerning the Accuracy and Integrity of Information Furnished to Consumer Reporting Agencies The Bureau encourages voluntary furnishing of information to consumer reporting agencies. Section 1022.42 of this part requires each furnisher to establish and implement reasonable written policies and procedures concerning the accuracy and integrity of the information it furnishes to consumer reporting agencies. Under § 1022.42(b) of this part, a furnisher must consider the guidelines set forth below in developing its policies and procedures. In establishing these policies and procedures, a furnisher may include any of its existing policies and procedures that are relevant and appropriate. Section 1022.42(c) requires each furnisher to review its policies and procedures periodically and update them as necessary to ensure their continued effectiveness. I. Nature, Scope, and Objectives of Policies and Procedures (a) Nature and Scope. (1) The types of business activities in which the furnisher engages; (2) The nature and frequency of the information the furnisher provides to consumer reporting agencies; and (3) The technology used by the furnisher to furnish information to consumer reporting agencies. (b) Objectives. (1) To furnish information about accounts or other relationships with a consumer that is accurate, such that the furnished information: (i) Identifies the appropriate consumer; (ii) Reflects the terms of and liability for those accounts or other relationships; and (iii) Reflects the consumer's performance and other conduct with respect to the account or other relationship; (2) To furnish information about accounts or other relationships with a consumer that has integrity, such that the furnished information: (i) Is substantiated by the furnisher's records at the time it is furnished; (ii) Is furnished in a form and manner that is designed to minimize the likelihood that the information may be incorrectly reflected in a consumer report; thus, the furnished information should: (A) Include appropriate identifying information about the consumer to whom it pertains; and (B) Be furnished in a standardized and clearly understandable form and manner and with a date specifying the time period to which the information pertains; and (iii) Includes the credit limit, if applicable and in the furnisher's possession; (3) To conduct reasonable investigations of consumer disputes and take appropriate actions based on the outcome of such investigations; and (4) To update the information it furnishes as necessary to reflect the current status of the consumer's account or other relationship, including, for example: (i) Any transfer of an account ( e.g., (ii) Any cure of the consumer's failure to abide by the terms of the account or other relationship. II. Establishing and Implementing Policies and Procedures In establishing and implementing its policies and procedures, a furnisher should: (a) Identify practices or activities of the furnisher that can compromise the accuracy or integrity of information furnished to consumer reporting agencies, such as by: (1) Reviewing its existing practices and activities, including the technological means and other methods it uses to furnish information to consumer reporting agencies and the frequency and timing of its furnishing of information; (2) Reviewing its historical records relating to accuracy or integrity or to disputes; reviewing other information relating to the accuracy or integrity of information provided by the furnisher to consumer reporting agencies; and considering the types of errors, omissions, or other problems that may have affected the accuracy or integrity of information it has furnished about consumers to consumer reporting agencies; (3) Considering any feedback received from consumer reporting agencies, consumers, or other appropriate parties; (4) Obtaining feedback from the furnisher's staff; and (5) Considering the potential impact of the furnisher's policies and procedures on consumers. (b) Evaluate the effectiveness of existing policies and procedures of the furnisher regarding the accuracy and integrity of information furnished to consumer reporting agencies; consider whether new, additional, or different policies and procedures are necessary; and consider whether implementation of existing policies and procedures should be modified to enhance the accuracy and integrity of information about consumers furnished to consumer reporting agencies. (c) Evaluate the effectiveness of specific methods (including technological means) the furnisher uses to provide information to consumer reporting agencies; how those methods may affect the accuracy and integrity of the information it provides to consumer reporting agencies; and whether new, additional, or different methods (including technological means) should be used to provide information to consumer reporting agencies to enhance the accuracy and integrity of that information. III. Specific Components of Policies and Procedures In developing its policies and procedures, a furnisher should address the following, as appropriate: (a) Establishing and implementing a system for furnishing information about consumers to consumer reporting agencies that is appropriate to the nature, size, complexity, and scope of the furnisher's business operations. (b) Using standard data reporting formats and standard procedures for compiling and furnishing data, where feasible, such as the electronic transmission of information about consumers to consumer reporting agencies. (c) Maintaining records for a reasonable period of time, not less than any applicable recordkeeping requirement, in order to substantiate the accuracy of any information about consumers it furnishes that is subject to a direct dispute. (d) Establishing and implementing appropriate internal controls regarding the accuracy and integrity of information about consumers furnished to consumer reporting agencies, such as by implementing standard procedures and verifying random samples of information provided to consumer reporting agencies. (e) Training staff that participates in activities related to the furnishing of information about consumers to consumer reporting agencies to implement the policies and procedures. (f) Providing for appropriate and effective oversight of relevant service providers whose activities may affect the accuracy or integrity of information about consumers furnished to consumer reporting agencies to ensure compliance with the policies and procedures. (g) Furnishing information about consumers to consumer reporting agencies following mergers, portfolio acquisitions or sales, or other acquisitions or transfers of accounts or other obligations in a manner that prevents re-aging of information, duplicative reporting, or other problems that may similarly affect the accuracy or integrity of the information furnished. (h) Deleting, updating, and correcting information in the furnisher's records, as appropriate, to avoid furnishing inaccurate information. (i) Conducting reasonable investigations of disputes. (j) Designing technological and other means of communication with consumer reporting agencies to prevent duplicative reporting of accounts, erroneous association of information with the wrong consumer(s), and other occurrences that may compromise the accuracy or integrity of information provided to consumer reporting agencies. (k) Providing consumer reporting agencies with sufficient identifying information in the furnisher's possession about each consumer about whom information is furnished to enable the consumer reporting agency properly to identify the consumer. (l) Conducting a periodic evaluation of its own practices, consumer reporting agency practices of which the furnisher is aware, investigations of disputed information, corrections of inaccurate information, means of communication, and other factors that may affect the accuracy or integrity of information furnished to consumer reporting agencies. (m) Complying with applicable requirements under the FCRA and its implementing regulations. Appendixes F-G to Part 1022 [Reserved] Appendix H to Part 1022—Model Forms for Risk-Based Pricing and Credit Score Disclosure Exception Notices 1. This appendix contains four model forms for risk-based pricing notices and three model forms for use in connection with the credit score disclosure exceptions. Each of the model forms is designated for use in a particular set of circumstances as indicated by the title of that model form. 2. Model form H-1 is for use in complying with the general risk-based pricing notice requirements in Sec. 1022.72 if a credit score is not used in setting the material terms of credit. Model form H-2 is for risk-based pricing notices given in connection with account review if a credit score is not used in increasing the annual percentage rate. Model form H-3 is for use in connection with the credit score disclosure exception for loans secured by residential real property. Model form H-4 is for use in connection with the credit score disclosure exception for loans that are not secured by residential real property. Model form H-5 is for use in connection with the credit score disclosure exception when no credit score is available for a consumer. Model form H-6 is for use in complying with the general risk-based pricing notice requirements in Sec. 1022.72 if a credit score is used in setting the material terms of credit. Model form H-7 is for risk-based pricing notices given in connection with account review if a credit score is used in increasing the annual percentage rate. All forms contained in this appendix are models; their use is optional. 3. A person may change the forms by rearranging the format or by making technical modifications to the language of the forms, in each case without modifying the substance of the disclosures. Any such rearrangement or modification of the language of the model forms may not be so extensive as to materially affect the substance, clarity, comprehensibility, or meaningful sequence of the forms. Persons making revisions with that effect will lose the benefit of the safe harbor for appropriate use of appendix H model forms. A person is not required to conduct consumer testing when rearranging the format of the model forms. a. Acceptable changes include, for example: i. Corrections or updates to telephone numbers, mailing addresses, or Web site addresses that may change over time. ii. The addition of graphics or icons, such as the person's corporate logo. iii. Alteration of the shading or color contained in the model forms. iv. Use of a different form of graphical presentation to depict the distribution of credit scores. v. Substitution of the words “credit” and “creditor” or “finance” and “finance company” for the terms “loan” and “lender.” vi. Including pre-printed lists of the sources of consumer reports or consumer reporting agencies in a “check-the-box” format. vii. Including the name of the consumer, transaction identification numbers, a date, and other information that will assist in identifying the transaction to which the form pertains. viii. Including the name of an agent, such as an auto dealer or other party, when providing the “Name of the Entity Providing the Notice.” ix. Until January 1, 2013, substituting “For more information about credit reports and your rights under Federal law, visit the Federal Reserve Board's Web site at www.federalreserve.gov, www.ftc.gov. www.consumerfinance.gov/learnmore. b. Unacceptable changes include, for example: i. Providing model forms on register receipts or interspersed with other disclosures. ii. Eliminating empty lines and extra spaces between sentences within the same section. 4. If a person uses an appropriate appendix H model form, or modifies a form in accordance with the above instructions, that person shall be deemed to be acting in compliance with the provisions of § 1022.73 or § 1022.74, as applicable, of this part. It is intended that appropriate use of Model Form H-3 also will comply with the disclosure that may be required under section 609(g) of the FCRA. Optional language in model forms H-6 and H-7 may be used to direct the consumer to the entity (which may be a consumer reporting agency or the creditor itself, for a proprietary score that meets the definition of a credit score) that provided the credit score for any questions about the credit score, along with the entity's contact information. Creditors may use or not use the additional language without losing the safe harbor, since the language is optional. H-1 Model form for risk-based pricing notice. H-2 Model form for account review risk-based pricing notice. H-3 Model form for credit score disclosure exception for credit secured by one to four units of residential real property. H-4 Model form for credit score disclosure exception for loans not secured by residential real property. H-5 Model form for credit score disclosure exception for loans where credit score is not available. H-6 Model form for risk-based pricing notice with credit score information. H-7 Model form for account review risk-based pricing notice with credit score information. Appendix I to Part 1022—Summary of Consumer Identity Theft Rights The prescribed form for this summary is a disclosure that is substantially similar to the Bureau's model summary with all information clearly and prominently displayed. A summary should accurately reflect changes to those items that may change over time (such as telephone numbers) to remain in compliance. Translations of this summary will be in compliance with the Bureau's prescribed model, provided that the translation is accurate and that it is provided in a language used by the recipient consumer. [83 FR 47033, Sept. 18, 2018] Appendix J to Part 1022 [Reserved] Appendix K to Part 1022—Summary of Consumer Rights The prescribed form for this summary is a disclosure that is substantially similar to the Bureau's model summary with all information clearly and prominently displayed. The list of Federal regulators that is included in the Bureau's prescribed summary may be provided separately so long as this is done in a clear and conspicuous way. A summary should accurately reflect changes to those items that may change over time ( e.g., [88 FR 58066, Aug. 25, 2023] Appendix L to Part 1022—Standardized Form for Requesting Annual File Disclosures Appendix M to Part 1022—Notice of Furnisher Responsibilities The prescribed form for this disclosure is a separate document that is substantially similar to the Bureau'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. [77 FR 67750, Nov. 14, 2012] Appendix N to Part 1022—Notice of User Responsibilities The prescribed form for this disclosure is a separate document that is substantially similar to the Bureau'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. [77 FR 67754, Nov. 14, 2012] 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 2026, the maximum allowable charge is $16.00. 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 was $12.50. 10. For calendar year 2021, the maximum allowable disclosure charge was $13.00. 11. For calendar year 2022, the maximum allowable disclosure charge was $13.50. 12. For calendar year 2023, the maximum allowable disclosure charge was $14.50. 13. For calendar year 2024, the maximum allowable disclosure charge was $15.50. 14. For calendar year 2025, the maximum allowable disclosure charge was $15.50. 15. For calendar year 2026, the maximum allowable disclosure charge is $16.00. [90 FR 57889, Dec. 15, 2025]

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