The federal
bank, thrift, and credit union regulatory agencies today issued interim final
rules under the Fair Credit Reporting Act (FCRA) that create exceptions to the statutory prohibition against
obtaining or using medical information in connection with credit eligibility
determinations. The interim final rules
also address the sharing of medically related information among affiliates.
The effective date for these rules
is nine months after the date of publication in the Federal Register, which is expected on or about June 9, 2005.
Section 411
of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) amended the
FCRA to provide that a creditor may not obtain or use medical information in
connection with any determination of a consumer’s eligibility, or continued
eligibility, for credit, except as permitted by regulations or the FACT
Act. However, the FACT Act also
requires the agencies to prescribe regulations that permit creditors to obtain
and use medical information for credit eligibility purposes when necessary and
appropriate to protect legitimate operational, transactional, risk, consumer,
and other needs. A proposed rule was
published for comment on April 28, 2004.
The interim
final rules create exceptions to the general statutory prohibition on obtaining
and using medical information. The
provisions are similar to those contained in the proposed rule and include
exceptions for the use of medical information that is also financial
information typically considered in credit underwriting. As authorized by the FACT Act, the agencies
have expanded the scope of the rules so that the exceptions will apply to all
creditors, not just to creditors ordinarily regulated by one of the agencies.
Section 411
of the FACT Act also amended the FCRA to limit the ability of creditors and
others to share medically related information among affiliates, except as
permitted by the statute, regulation, or order. The interim final rules specify the
circumstances in which creditors may share medically related
information among affiliates without becoming consumer reporting agencies.
The interim
final rules are being issued by the Board of Governors of the Federal Reserve
System, Federal Deposit Insurance Corporation, National Credit Union
Administration, Office of the Comptroller of the Currency, and Office of Thrift
Supervision. The rules of each agency
are substantively identical.
The rules
are being issued as interim final rules to allow for public comment on their
expanded scope. The agencies request
comment within thirty days after publication in the Federal Register. The Federal Register notice is attached.
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Attachment
Media Contacts:
Federal Reserve Susan
Stawick (202) 452-2955
FDIC Frank Gresock (202) 898-6634
NCUA Cherie Umbel (703) 518-6330
OCC Dean DeBuck (202)
874-5770
OTS Erin Hickman (202) 906-6913