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Financial Services Law Insights and Observations

FTC approves five FCRA rule changes for auto dealers

Agency Rule-Making & Guidance FTC FCRA Dodd-Frank Auto Finance

Agency Rule-Making & Guidance

On September 8, the FTC announced it approved final revisions to rules that would implement parts of the FCRA in line with the Dodd-Frank Act. As previously covered by InfoBytes, the agency sought comment on the proposed rule changes in 2020. In separate notices, the FTC approved largely technical, non-substantive changes, clarifying five FCRA rules enforced by the FTC, which apply only to motor vehicle dealers. The changes affect the following rules:

  • Address Discrepancy Rule, which requires users of consumer reports to implement policies and procedures for, among other things, handling notices of address discrepancy received from a nationwide consumer reporting agency (CRA) and furnishing an address for a consumer that a “user has reasonably confirmed as accurate to the CRA from whom it received the notice.”
  • Affiliate Marketing Rule, which provides consumers the right to restrict a person from using certain information received from an affiliate to make solicitations.
  • Furnisher Rule, which requires entities to implement policies and procedures regarding the accuracy and integrity of the consumer information they provide to a CRA. 
  • Pre-screen Opt-Out Notice Rule, which outlines requirements for those who use consumer reports to make unsolicited credit or insurance offers to consumers.
  • Risk-Based Pricing Rule, which requires that persons who use information from a consumer report to offer less favorable terms are required to provide a risk-based pricing notice to consumers about the use of such data.
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