NAFCU Presses For Leeway In FACT ActInterpretation
ARLINGTON, Va. - (08/18/04) In a comment letter to NCUA onimplementing the affiliate marketing provisions of the Fair andAccurate Credit Transactions Act (FACT) of 2003, NAFCU said itbelieves the agency is being too narrow in defining "pre-existingbusiness relationships." "It could present problems when creditunions create currently unconsidered consumer-affiliaterelationships in the future," NAFCU wrote, asking that it beapplied flexibly. NAFCU also said NCUA has specifically requestedcomment on whether the affiliate receiving the information couldprovide the opt-out notice without concurrently making or sendingsolicitations and whether such notice would be effective. NAFCUsaid it believes that the receiving affiliate should be permittedto provide notice on its own behalf, and that such affiliatesshould not have problems complying with the requirement that theopt out notice be sent prior to any solicitation.