The Fed WantsBank Customers Advised More Often About Fair Credit Act

The Federal Reserve Board proposed several clarifications to the Fair Credit Reporting Act's disclosure requirements last week. The changes would affect when a bank must notify consumers of their rights under the act, including their ability to receive copies of their credit reports.

The proposal would require a bank to make the disclosure statements whenever it uses credit reports to make a loan decision. It would apply even if the bank relied upon a credit report that an affiliate acquired for a different transaction.

Lenders, however, would not have to provide the disclosure if they relied on other information obtained from affiliates, such as repayment histories on existing loans. Comments are due Aug. 15.