16 CFR Part 642 — Prescreen Opt-out Notice

PART 642—PRESCREEN OPT-OUT NOTICE Authority: Pub. L. 108-159, sec. 311; 15 U.S.C. 1681m(d); 12 U.S.C. 5519(d). Source: 70 FR 5032, Jan. 31, 2005, unless otherwise noted. § 642.1 Purpose and scope. (a) Purpose. (b) Scope. [70 FR 5032, Jan. 31, 2005, as amended at 86 FR 50850, Sept. 13, 2021] § 642.2 Definitions. As used in this part: (a) Simple and easy to understand (1) A layered format as described in § 642.3 of this part; (2) Plain language designed to be understood by ordinary consumers; and (3) Use of clear and concise sentences, paragraphs, and sections. (i) Examples. (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. (ii) [Reserved] (b) Motor vehicle dealer (c) Principal promotional document [70 FR 5032, Jan. 31, 2005, as amended at 86 FR 50850, Sept. 13, 2021] § 642.3 Prescreen opt-out notice. Any motor vehicle dealer that uses a consumer report on any consumer in connection with any credit or insurance transaction that is not initiated by the consumer, and that is provided to that person under section 604(c)(1)(B) of the FCRA (15 U.S.C. 1681b(c)(1)(B)), shall, with each written solicitation made to the consumer about the transaction, provide the consumer with the following statement, consisting of a short portion and a long portion, which shall be in the same language as the offer of credit or insurance: (a) Short notice. (1) Content. (2) Form. (i) 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; (ii) 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; (iii) Located on the page and in a format so that the statement is distinct from other text, such as inside a border; and (iv) 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. (b) Long notice. (1) Content. (2) Form. (i) Appear in the solicitation; (ii) 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; (iii) Begin with a heading in capital letters and underlined, and identifying the long notice as the “ PRESCREEN OPT-OUT NOTICE (iv) 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 (v) 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. [70 FR 5032, Jan. 31, 2005, as amended at 86 FR 50850, Sept. 13, 2021] § 642.4 Effective date. This part is effective on August 1, 2005.

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