['Recruiting and hiring']
['Fair Credit Reporting Act (FCRA)']
09/19/2024
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...
FEDERAL TRADE COMMISSION
16 CFR Parts 640, 680, and 698
Rescission of Model Forms and Disclosures
AGENCY: Federal Trade Commission.
ACTION: Final rule; rescission of regulations.
SUMMARY: The Federal Trade Commission (“FTC” or “Commission”) is rescinding several Model Forms and Disclosures promulgated pursuant to the Fair Credit Reporting Act (“FCRA”) that it has determined are no longer necessary. The Dodd-Frank Wall Street Reform and Consumer Protection Act transferred rulemaking authority associated with these forms and disclosures to the Bureau of Consumer Financial Protection (“Bureau” or “CFPB”). Given the CFPB's 2018 updates to its model forms and disclosures, the Commission has determined that rescinding several of its model forms and disclosures would reduce confusion. The Commission is also making conforming amendments to address references to the updated model forms and disclosures in related rules.
DATES: This action is effective May 22, 2019.
FOR FURTHER INFORMATION CONTACT:
David Lincicum, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580, (202) 326-2773, dlincicum@ftc.gov, or Kenny Wright, Office of the General Counsel, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580, (202) 326-2907, kwright@ftc.gov.
SUPPLEMENTARY INFORMATION:
I. Background
Section 1061 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) 1 transferred rulemaking authority for certain enumerated consumer financial laws to the Bureau, including portions of the Fair Credit Reporting Act (“FCRA”),2 although the FTC retained general rulemaking authority under Sections 615(e) (“Red Flag Guidelines and Regulations Required”) and 628 (“Disposal of Records”) of the FCRA. See 15 U.S.C. 1681s(e); Public Law 111-203, sec. 1088(a)(10)(E). Following these amendments, the Commission retains rulemaking authority for its “Identity Theft Rules,” 16 CFR part 681, and its rules governing “Disposal of Consumer Report Information and Records,” 16 CFR part 682, for all entities subject to those rules. See 15 U.S.C. 1681m, 1681w.
1 Public Law 111-203, 124 Stat. 1376 (2010).
2 15 U.S.C. 1681 et seq. Section 1088 of the Dodd-Frank Act made conforming amendments to the FCRA.
The Commission also retains rulemaking authority under the FCRA over any motor vehicle dealer described in Section 1029(a) of the Dodd-Frank Act that is predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both. See Dodd-Frank Act, sec. 1029(a), (c).
After the issuance of the Dodd-Frank Act, the Commission rescinded several rules following their republication by the CFPB. See 77 FR 22200 (2012). The Commission rescinded five rules issued under the FCRA, as amended by the FACT Act, that were republished by the CFPB: (1) [Identity Theft] Definitions, 16 CFR part 603 (republished by the CFPB at 12 CFR 1022.3); (2) Free Annual File Disclosures Rule, 16 CFR part 610 (republished by the CFPB at 12 CFR 1022.130); (3) Prohibition Against Circumventing Treatment as a Nationwide Consumer Reporting Agency, 16 CFR part 611 (republished by the CFPB at 12 CFR 1022.140); (4) Duration of Active Duty Alerts, 16 CFR part 613 (republished by the CFPB at 12 CFR 1022.121); and (5) Appropriate Proof of Identity, 16 CFR part 614 (republished by the CFPB at 12 CFR 1022.123).
The FTC also retained seven rules issued under the FCRA, as amended, that continue to apply to motor vehicle dealers, including the FCRA Model Forms and Disclosures in 16 CFR part 698.3
3 The other six retained rules that pertain to motor vehicle dealers consisted of: (1) Privacy of Consumer Financial Information Privacy Rule, 16 CFR part 313; (2) Duties of Creditors Regarding Risk-Based Pricing, 16 CFR part 640; (3) Duties of Users of Consumer Reports Regarding Address Discrepancies, 16 CFR part 641; (4) Prescreen Opt-Out Notice, 16 CFR part 642; (5) Duties of Furnishers of Information to Consumer Reporting Agencies, 16 CFR part 660; and (6) Affiliate Marketing, 16 CFR part 680.
The CFPB recently issued further revisions to its own model forms and disclosures associated with the FCRA on September 18, 2018 through an interim final rulemaking. See 83 FR 47027 (2018).
The Commission is now adopting further revisions to its own Model Forms and Disclosures to rescind forms that are no longer necessary. Accordingly, the Commission is rescinding the following appendices in 16 CFR part 698:
• Appendix A—Model Prescreen Opt-Out Notices;
• Appendix D—Standardized Form for Requesting Annual File Disclosures;
• Appendix E—Summary of Identity Theft Rights;
• Appendix F—General Summary of Consumer Rights;
• Appendix G—Notice of Furnisher Responsibilities; and
• Appendix H—Notice of User Responsibilities.
In addition, the Commission is redesignating Appendix B—Model Forms for Risk-Based Pricing and Credit Score Disclosure Exception Notices as appendix A, and Appendix C—Model Forms for Affiliate Marketing Opt-Out Notices as appendix B.
Following these rescissions, covered entities should look to the corresponding forms issued by the CFPB to obtain the appropriate model forms and disclosures. The following is a chart that provides cross-references to the appropriate forms:
| Rescinded FTC Form (16 CFR part 698) | Corresponding CFPB Form in Regulation V (12 CFR part 1022) |
|---|---|
| Appendix A: Model Prescreen Opt Notices | Appendix D to Part 1022—Model Forms for Firm Offers of Credit or Insurance. |
| Appendix D: Standardized Form for Requesting Annual File Disclosures | Appendix L to Part 1022—Standardized Form for Requesting Annual File Disclosures. |
| Appendix E: Summary of Identity Theft Rights | Appendix I to Part 1022—Summary of Consumer Identity Theft Rights. |
| Appendix F: General Summary of Consumer Rights | Appendix K to Part 1022—Summary of Consumer Rights. |
| Appendix G: Notice of Furnisher Responsibilities | Appendix M to Part 1022—Notice of Furnisher Responsibilities. |
| Appendix H: Notice of User Responsibilities | Appendix N to Part 1022—Notice of User Responsibilities. |
The Commission is also making conforming amendments to update references in several Commission rules to the currently applicable forms issued under the FCRA. These amendments address references to the model forms and disclosures in the Risk-Based Pricing Rule, 16 CFR part 640, and the Affiliate Marketing Rule, 16 CFR part 680.
II. Procedural Requirements
Under the Administrative Procedure Act, an agency may promulgate or rescind a rule without prior notice and an opportunity for public comment if the agency finds for good cause that notice and comment are unnecessary.4 The Commission has determined that public comment on the rescission of these rules is unnecessary because the rulemaking authority for rules associated with these model forms and disclosures has transferred to the CFPB pursuant to the Dodd-Frank Act. The rescission of these FTC model forms will help avoid confusion as to which model forms and disclosures covered entities should look to in order to fulfill their disclosure obligations under the FCRA. Thus, there is no reason for public comment on this regulatory action.
4 5 U.S.C. 553(b)(B).
In addition, the Commission has determined that these rescissions may take effect immediately upon publication of this notice in the Federal Register, as permitted by the Administrative Procedure Act.5 The removal of the regulations is exempt from the usual 30-day notice requirement as it merely “relieves a restriction” from FTC requirements. The 30-day notice requirement does not apply under these circumstances, in which the underlying rulemaking authority for rules associated with these model forms and disclosures has transferred to the CFPB. Therefore, affected persons do not need time to prepare for or take any action with regard to the rescission.
5 5 U.S.C. 553(d)(1).
III. Paperwork Reduction Act
The FTC is rescinding several model forms and disclosures contained in 16 CFR part 698 that it has determined are no longer necessary. The removal of these forms will not impact paperwork burden estimates relating to the Commission's rules issued under the FCRA. Neither the Model Forms and Disclosures in 16 CFR part 698 that are being rescinded nor the remaining Model Forms and Disclosures fall within the definition of a “collection of information” covered by the Paperwork Reduction Act (“PRA”), 44 U.S.C. 3501-3521, because they constitute “[t]he public disclosure of information originally supplied by the Federal government to the recipient for the purpose of disclosure to the public * * *.” 5 CFR 1320.3(c)(2).6 Accordingly, these model forms and disclosures do not constitute a “collection of information” as defined in the regulations implementing the PRA, nor do the financial resources expended in relation to the distribution of these documents constitute a PRA burden.
6 See 62 FR 35586, 35589 (1997); 69 FR 69776, 69784 (2004).
IV. Regulatory Flexibility Act
Because the Commission has determined that it may remove these model forms and disclosures without public comment, the Commission is also not required to publish an initial or final regulatory flexibility analysis under the Regulatory Flexibility Act as part of such action.7
7 See 5 U.S.C. 603(a), 604(b).
List of Subjects in 16 CFR Parts 640, 680, and 698
Consumer reporting agencies, Consumer reports, Credit, Fair Credit Reporting Act, Trade practices.
April J. Tabor,
Acting Secretary.
[FR Doc. 2019-10110 Filed 5-21-19; 8:45 am]
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