Ok...what's section 312 of the Fact Act and we have to have it up and running by july?

Regulations involving accuracy of information and direct disputes of information become effective then:

Section 312 regs

Thanks Ted. Can you point me to the where i can find section 312 itself in the Reg, instead of the final rule. Isn't the final rule where they tell you the entire history of it, the arguments made back and forth, etc.? That is always confusing to me....but when i pull up my version of the FCRA/FACTA, i see sections starting in the 600s.....confused.

It's section 623 isn't it? I'm thinking maybe the 623 is a FCRA thing where the 312 of FACTA got inserted...is that how that works?

Right. Section 623 is the section number of the Fair Credit Reporting Act and section 312 is the section number from the FACT Act, which was a series of amendments to the FCRA.

The two parts of section 623 that were added for these requirements were subsection (a)(8) and subsection (e).

thanks

The final rules implement the requirement that the Agencies issue guidelines for use by furnishers regarding the accuracy and integrity of the information about consumers that they furnish to consumer reporting agencies (CRAs) and prescribe regulations requiring furnishers to establish reasonable policies and procedures for implementing the guidelines.

Does anyone have a written policy and procedure that I can use as a template? I know what we do, I just need to write it out but a template would really help out.

Never mind. I found an awesome template in the BOL Banker Tools.

What is the effective date for this section?

Also, does anyone have any procedures yet that they would be willing to share?

Effective date is July 1, 2010.

CSB1 Go to the BOL Banker Tools

http://www.bankersonline.com/tools/tools_ppp.html

*bump*

If the bank only reports to one of the 3 credit reporting agencies, would it be safe to say that the bank would only have to ensure that the information provided to the one CRA meets the guidelines for accuracy and integrity?

Example: If customer disputes information on a CBR that is from a CRA the bank does not report to, the bank has no way to investigate because the information would have been received from a third party - not directly from the bank. If the bank verifies that the information it provides to its CRA is accurate, is that sufficient?

Direct Dispute ___.43(b)Exceptions
(vi) Information provided to a consumer reporting agency by another furnisher;

Thanks!

With the section 312 of the FACT Act being effective 7/1/2010 need a refresher, does anyone remember when Chex Systems was determined to NOT be a CRA under previous section of the FACT Act that were imposed? In an earlier webinar there was a Q&A which indicated Chex Systems IS considered a CRA....just want to get this correct.

Chexsystems is a CRA. The confusion arises because some FACT Act sections apply to all CRAs, while other sections apply only to those CRAs defined in section 603(p), which means only the Big Three. This section applies to all CRAs.

Thanks for the clarification!

Silly question: we do not report to credit bureaus but we do submit information to ChexSystems on abuse of deposit accounts - any ideas as to how in depth our procedures need to be in order to be compliant? We do have an identity theft/red flag program in place that deals with the other big piece of facta. Thanks!

In order to comply with this we only need the following?:

1) written policy/procedures
2) some type of log for disputes (maybe info worksheet w/dates)
3) form for communicating to customer
4) training for those who deal with disputes

I am feeling a little overwhelmed from just finishing up escrow training and trying to get on to the next fun item (there are so many to choose from).

Please provide any info if I missed anything.

Thanks for the little checklist above. I am now just getting to this. Is there anything else we will do to comply with the changes?

The policy we currently have in place is pretty similar to the one on BankersOnline. Would this policy be sufficient? We then would just need to develop procedures for furnishing inofmraiton to consumer reporting agencies?

Appendix E to the regulation includes guidelines for developing your policies and procedures. We are supposed to incorporate those that are appropriate.

What is the form you refer to in #3?

How are banks verifying the credit information transmitted (Appendix E, section III(d))? For example, are you getting a report from your core processor (if they are ones that actually transmit the data to the credit bureaus)?

Also, what sample size are you using?

Ok....we already have a Red Flag policy.....with the implementation of Sec. 312 of the FACT Act...should we AMEND that policy to include these requirements?

I've looked at the sample policy, and the section on "Responsibility of Furnishers of Credit Information" (pg 17-22) seems to adequately cover the requirements of the reg. I am suggesting to management adding a variation of it (tailor it to our operations a bit more) as an appendix or amending and expanding the one paragraph-long section we currently have in our Red Flag policy.

Are you talking about the sample policy on BOL?

Management level policy with underlying procedures O.K., correct? No requirement for Board approval?

I have not yet gotten around to submitting a comprehensive FACT Act policy to the Board at this institution yet due to other more pressing matters. That will come on the heels of getting into compliance by July 1st.

I have the same question about the form referred to in #3.

I assuming they mean a response/follow-up form to the consumers direct dispute, you either say yes or no.

Can you tell me where it states that Chexsystems will be included as a CRA to comply with these changes?

Does anyone have written procedures that they are willing to share? I saw the one on BOL, but I was hoping to get a few more to help me out.

Thanks!

You have to look at the definition of "consumer reporting agency" in the FCRA. ChexSystems meets that definition.

Okay....I have serious tired head from all of the FACTA/FCRA mumbo jumbo. One question for those who still have sanity....

Do you think it would be acceptable to combine red flag, identity theft program, items effective July 1st, etc, etc all into one document for board approval?

I have accumulated way too many policies, programs, etc for this convaluted mess.

I considered that, but then decided against it. That's a lot of information for a board member to have to read.

On our Intranet, I have a section for FCRA. In it I have included separate documents for the policies, procedures and programs named below. I always consider the user. If it's too difficult to find what they are looking for, they end up calling me. By making it easy for them, I hope to preserve some of my precious time!

These are the sections I will have when I am finished:

Accuracy & Integrity Policy
Direct Dispute Procedures
Credit Reporting Agency Dispute Procedures
Reporting Information to Credit Reporting Agencies Procedures

Red Flag Program

and FCRA Procedures that include:

Permissible Uses of Credit Reports
Adverse Action
Alerts/Freezes
Use of Medical Information
Adverse Action

Only the policy and procedures that require board approval are taken to the board.

Can I ask a question? At the end of the day, should we have a policy statement for 1) FCRA/Fact ACt, 2) Reg Flag, 3) ID Theft and 4) Credit Reporting? Then, have separate procedures for each? Am I missing a any actual policy that would require board approval?

Dolly: Unless they are already covered under other sections of your list, you might want to also include Affiliate Sharing, Affiliate Marketing and Notice to Home Loan Applicant/Credit Score disclosures.

Good point Ted. I failed to mention that I have a procedure section for the Credit Score Disclosure. I reference sharing under the FCRA in our Privacy Policy & Procedures.

From ChexSystems:
Tips to Comply with FACTA Accuracy and Integrity of Data Reported to CRAs
Are you ready for the FACTA Accuracy and Integrity of Data Reported to Consumer Reporting Agencies? Section 312 of the Fair and Accurate Credit Transaction Act (FACTA) becomes effective on July 1, 2010. To help you prepare, FIS recommends:
1. Please read the ChexSystems, Inc. (Chex) Data Contribution Policy (DCP) that defines the requirements for furnishing data to ChexSystems, a Consumer Reporting Agency (CRA

Other than references made to this on webinar advertisements, I'm not seeing anything in the guidance that specifies what the "required data audit and testing techniques" are under FCRA and FACTA 312. The ads lead me to believe there are very specific steps to be included....any insight, anyone? Thanks.

Where can i find Appendix E? I'm used to using BOL to look at regulations, and i don't see Appendix E.

Do we need a board approved policy statement or can this be rolled into a existing policy, with "robust" procedures, of course?

http://www.bankersonline.com/regs/222/e222.html

raitch....you can find this and the rest of the FCRA & FACT Act amendments under Reg V in Alphabet Soup.

Dani...thanks.....i was having a major brain cramp.

Just so everyone knows, I used the FACT Act Policy on BOL and our auditor said we needed to enhance the integrity and accuracy of information provided to credit reporting agencies as outlined in Regulation V Section 222.42. So everyone that used the section under Responsibility of Furnishers of Credit Informtion may want to review their policy again.