FDIC, Federal Reserve issue Voluntary Private Education Loan Rehabilitation Programs advisory

Agency Rule-Making & Guidance FDIC Federal Reserve Student Lending FCRA EGRRCPA

On February 4, the FDIC and the Federal Reserve Board issued a joint advisory on Voluntary Private Education Loan Rehabilitation Programs to alert financial institutions of an amendment to section 623 of the Fair Credit Reporting Act (FCRA) contained within section 602 of the Economic, Growth, Regulatory Relief and Consumer Protection Act. The amendment provides a safe harbor from potential claims of inaccurate reporting under the FCRA, provided the financial institutions who choose to offer private education loan rehabilitation programs satisfy section 602’s statutory requirements before removing a reported default from a qualified borrower’s credit report.