CFPB announces revised allowable charge limits under FCRA
AML AND COMPLIANCE NEWS |
On April 3, 2012 the Consumer Financial Protection Bureau (CFPB) published a notice in the Federal Register amending charge limits for certain disclosures under the Fair Credit Reporting Act (FCRA). The FCRA provides that a consumer reporting agency may charge a consumer a reasonable amount for making a disclosure to the consumer pursuant to Section 609 of the FCRA. Section 609 requires a consumer reporting agency to clearly and accurately disclose the following upon request to the consumer: all the information in the consumer’s file at time of the request, the sources of that information, and the identity of each person that acquired a copy of the consumer’s report.
The FCRA provided an initial limitation of $8.00 for the charge, with the caveat that the CFPB increase the ceiling annually on Jan.1. based on the changes to the Consumer Price Index (CPI). The CPI increased 40.75 percent between September 1997 (the date the FCRA amendments took effect) and September 2011. This increase in the CPI results in a maximum allowable charge of $11.50. The new ceiling is effective as of the date of publication in the Federal Register, April 3, 2012.
The Fair and Accurate Credit Transactions Act of 2003 added a new requirement to the FCRA that provided consumers the right to request free annual disclosures once every 12 months. The maximum allowable charge established by this notice does not apply to requests made under that provision. The charge does apply when a consumer who orders a file disclosure has already received a free annual disclosure and does not otherwise qualify for an additional free disclosure.
Read the Federal Register notice.