NCUA and the other financial regulators issued a regulatory alert Friday notifying credit unions and other lenders that the use of medical information to determine a borrower's creditworthiness is prohibited under the Fair and Accurate Credit Transaction (FACT) Act.
The new law, which amends the Fair Credit Reporting Act, prohibits a creditor from obtaining or using medical information, such as billing or adverse physical conditions, in connection with any determination of a consumer's eligibility, or continued eligibility, except when specifically allowed by regulation.
The individual agencies must develop their own regulations explaining any such exceptions by June 4.
