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FIL-26-2001 Attachment

[Federal Register: March 27, 2001 (Volume 66, Number 59)]

[Proposed Rules]

[Page 16624-16625]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr27mr01-18]


 

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DEPARTMENT OF THE TREASURY


 

Office of the Comptroller of the Currency


 

12 CFR Part 41


 

[Docket No. 01-04]

RIN 1557-AB78


 

FEDERAL RESERVE SYSTEM


 

12 CFR Part 222


 

[Regulation V; Docket No. R-1082]


 

FEDERAL DEPOSIT INSURANCE CORPORATION


 

12 CFR Part 334


 

RIN 3064-AC35


 

DEPARTMENT OF THE TREASURY


 

Office of Thrift Supervision


 

12 CFR Part 571


 

[Docket No. 2001-17]

RIN 1550-AB33


 

 

Fair Credit Reporting Regulations on Communication of Consumer

Information Among Affiliated Institutions


 

AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC);

Board of Governors of the Federal Reserve System (Board); Federal

Deposit Insurance Corporation (FDIC); and Office of Thrift Supervision,

Treasury (OTS).


 

[[Page 16625]]



 

ACTION: Joint notice of proposed rulemaking; update.


 

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SUMMARY: The OCC, Board, FDIC, and OTS (Agencies) have published for

comment proposed regulations implementing the provisions of the Fair

Credit Reporting Act (FCRA) that permit institutions to communicate

consumer information to their affiliates (affiliate information

sharing) without incurring the obligations of consumer reporting

agencies. Many of the comments have raised concerns about how this

rulemaking would affect compliance with the final regulations

implementing the privacy provisions of the Gramm-Leach-Bliley Act

(GLBA). The final FCRA rule will not apply to privacy notices that an

institution will have sent prior to January 1, 2002, or prior to the

effective date of a final FCRA rule, whichever is later. The Agencies

advise financial institutions to prepare their privacy notices in

accordance with the privacy regulations and the FCRA without delaying

compliance until publication of the final FCRA rule, and provide an

update on the status of the rulemaking.


 

FOR FURTHER INFORMATION CONTACT:

OCC: Michael S. Bylsma, Director, Community and Consumer Law

Division, (202) 874-5750; or Amy Friend, Assistant Chief Counsel, (202)

874-5200, Office of the Comptroller of the Currency, 250 E Street, SW.,

Washington, DC 20219.

Board: Jane J. Gell, Managing Counsel, Division of Consumer and

Community Affairs, (202) 452-3667; or Thomas E. Scanlon, Senior

Attorney, Legal Division (202) 452-3594, Board of Governors of the

Federal Reserve System, 20th and C Streets, NW., Washington, DC 20051.

FDIC: James K. Baebel, Assistant Director, Compliance Policy,

Division of Compliance and Consumer Affairs, (202) 942-3086, Federal

Deposit Insurance Corporation, 550 17th Street, NW., Washington, DC

20429.

OTS: Paul Robin, Assistant Chief Counsel, (202) 906-6648; or

Christine Harrington, Counsel (Banking and Finance), (202) 906-7957,

Regulations and Legislation Division, Office of Thrift Supervision,

1700 G Street, NW., Washington, DC 20552.


 

SUPPLEMENTARY INFORMATION:


 

Background


 

On June 1, 2000, the Agencies jointly published final regulations

implementing provisions of the GLBA regarding the privacy of consumer

financial information (privacy regulations) (65 FR 35162). The privacy

regulations require that financial institutions deliver initial privacy

notices to their existing customers no later than July 1, 2001. To meet

the July 1, 2001, deadline, many institutions are currently designing,

printing, and preparing to distribute their initial privacy notices.

Since 1997, the FCRA has permitted an institution to disclose

certain consumer information to its affiliates, without incurring the

obligations of consumer reporting agencies, if it first provides the

consumer with a notice regarding the disclosure and an opportunity to

opt out. The privacy regulations require an institution to include a

FCRA notice, if applicable, within its privacy notice.

On October 20, 2000, the Agencies published for comment proposed

regulations implementing the FCRA affiliate information-sharing

provisions (October FCRA Proposal) (65 FR 63120). The October FCRA

Proposal addressed, among other matters, the form, content, and means

of delivery of FCRA opt out notices.

A number of financial institutions have expressed concern that if

the FCRA opt out notices included in their initial privacy notices are

inconsistent with final FCRA regulations, then they may be required to

revise and reissue their privacy notices. As a result, some financial

institutions may consider delaying the preparation and delivery of

privacy notices until very close to July 1, 2001. Other financial

institutions that already have delivered their privacy notices are

concerned that they may have to revise and redeliver their notices.


 

Update


 

To allow financial institutions to plan for and meet the

requirements of the privacy regulations, the Agencies provide this

update on the October FCRA Proposal. The Agencies are actively

considering all of the comments submitted by the public regarding the

October FCRA Proposal. Among other things, the Agencies are considering

whether it is appropriate in light of suggestions and new issues raised

by commenters to request comment on a revised proposed rule or whether

to proceed to issue a final rule. In either event, the Agencies do not

contemplate that a final FCRA rule will be adopted in time for

institutions to adhere to the rule's requirements and deliver their

privacy notices before July 1, 2001. Accordingly, the Agencies

encourage institutions to deliver their privacy notices well in advance

of the July 1 deadline when possible.

The Agencies will also carefully consider and address the request

of commenters to the October FCRA Proposal that the Agencies delay the

effective date of the final FCRA rule to permit financial institutions

adequate time to comply with the final rule and the privacy

regulations. Under no circumstances, however, will the final FCRA rule

apply to privacy notices under the GLBA that an institution will have

sent prior to January 1, 2002, or prior to the effective date of a

final FCRA rule, whichever is later.


 

Dated: March 19, 2001.

John D. Hawke, Jr.,

Comptroller of the Currency.

By order of the Board of Governors of the Federal Reserve

System, March 14, 2001.

Jennifer J. Johnson,

Secretary of the Board.

By order of the Board of Directors.


 

Federal Deposit Insurance Corporation.


 

Dated at Washington, DC, this 13th day of March, 2001.

Robert E Feldman,

Executive Secretary.

Dated: March 13, 2001.


 

By the Office of Thrift Supervision.

Ellen Seidman,

Director.

[FR Doc. 01-7442 Filed 3-26-01; 8:45 am]

BILLING CODE 4810-33-P, 6210-01-P, 6714-01-P, 6720-01-P

Last Updated: March 24, 2024