Regulation V - Fair Credit Reporting

Editor's Note: As mandated by the Dodd-Frank Act, the Consumer Financial Protection Bureau has republished portions of this regulation in its own Regulation V, at 12 CFR Part 1022, effective December 30, 2011. Sections of the Federal Reserve Board's regulation that were not republished by the Bureau are marked with an asterisk below. For the Bureau's Regulation V, click HERE.
Authority: 15 U.S.C. 1681b, 1681c, 1681m, 1681s, 1681s-2, and 1681w; Secs. 3 and 214, Pub. L. 108–159, 117 Stat. 1952.
Reg Letter: 
V
Issuing Agency: 
FRB
FRB Letter Classification: 
Regulation V

Subpart A - General Provisions

Sec. 222.1 Purpose, scope, and effective dates.

Regulation Subsection Info: 
Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.1 of its Regulation V.].

Sec. 222.2 Examples

c
Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.2 of its Regulation V.].

Sec. 222.3 Definitions

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.3 of its Regulation V.].

Subpart B [Reserved]

Subpart C - Affiliate Marketing

Sec. 222.20 Coverage and definitions

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.20 of its Regulation V.].

Sec. 222.21 Affiliate marketing opt-out and exceptions.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.21 of its Regulation V.].

Sec. 222.22 Scope and duration of opt-out.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.22 of its Regulation V.].

Sec. 222.23 Contents of opt-out notice; consolidated and equivalent notices.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.23 of its Regulation V.].

Sec. 222.24 Reasonable opportunity to opt out.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.24 of its Regulation V.].

Sec. 222.25 Reasonable and simple methods of opting out.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.25 of its Regulation V.].

Sec. 222.26 Delivery of opt-out notices.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.26 of its Regulation V.].

Sec. 222.27 Renewal of opt-out.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.27 of its Regulation V.].

Sec. 222.28 Effective date, compliance date, and prospective application.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, The CFPB assumed responsibility for issuing regulations under the FCRA. When it reissued Regulation V, this section of the Federal Reserve Board's Regulation V was omitted because it was no longer applicable.

Subpart D - Medical Information

Sec. 222.30 Obtaining or using medical information in connection with a determination of eligibility for credit

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.30 of its Regulation V.].

Sec. 222.31 Limits on redisclosure of information

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.31 of its Regulation V.].

Sec. 222.32 Sharing medical information with affiliates

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.32 of its Regulation V.

Subpart E - Duties of Furnishers of Information

Sec. 222.40 Scope

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.40 of its Regulation V.

Sec. 222.41 Definitions

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.41 of its Regulation V.

Sec. 222.42 Reasonable policies and procedures concerning the accuracy and integrity of furnished information.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.42 of its Regulation V.

Sec. 222.43 Direct disputes.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.43 of its Regulation V.

Subparts F-G [Reserved]

Subpart H - Duties of Users Regarding Risk-Based Pricing

Sec. 222.70 Scope.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.70 of its Regulation V.

Sec. 222.71 Definitions.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.71 of its Regulation V.

Sec. 222.72 General requirements for risk-based pricing notices.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.72 of its Regulation V.

Sec. 222.73 Content, form, and timing of risk-based pricing notices.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.73 of its Regulation V.

Sec. 222.74 Exceptions

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.74 of its Regulation V.

Sec. 222.75 Rules of construction.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.75 of its Regulation V.

Subpart I - Duties of Users of Consumer Reports Regarding Address Discrepancies and Records Disposal

Sec. 222.82 Duties of users regarding address discrepancies.

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this section of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Section 1022.82 of its Regulation V.

Sec. 222.83 - Disposal of Consumer Information *

(a) Definitions as used in this section.

(1) You means member banks of the Federal Reserve System (other than national banks) and their respective operating subsidiaries, branches and agencies of foreign banks (other than Federal branches, Federal agencies and insured State branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act (12 U.S.C. 601 et seq., 611 et seq.).

(b) In general. You must properly dispose of any consumer information that you maintain or otherwise possess in accordance with the Interagency Guidelines Establishing Information Security Standards, as required under sections 208.3(d) (Regulation H), 211.5(l) and 211.24(i) (Regulation K) of this chapter, to the extent that you are covered by the scope of the Guidelines.

 

(c) Rule of construction. Nothing in this section shall be construed to:

 

(1) Require you to maintain or destroy any record pertaining to a consumer that is not imposed under any other law; or

(2) Alter or affect any requirement imposed under any other provision of law to maintain or destroy such a record.

Subpart J - Identity Theft Red Flags *

Sec. 222.90 Duties regarding the detection, prevention, and mitigation of identity theft. *

This section is added effective 1/1/2008, with a mandatory compliance date of 11/1/2008.

 

(a) Scope. This section applies to financial institutions and creditors that are member banks of the Federal Reserve System (other than national banks) and their respective operating subsidiaries that are not functionally regulated within the meaning of section 5(c)(5) of the Bank Holding Company Act, as amended (12 U.S.C. 1844(c)(5)), branches and agencies of foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act (12 U.S.C. 601 et seq., and 611 et seq.).

 

(b) Definitions. For purposes of this section and Appendix J, the following definitions apply:

 

(1) Account means a continuing relationship established by a person with a financial institution or creditor to obtain a product or service for personal, family, household or business purposes. Account includes:

(i) An extension of credit, such as the purchase of property or services involving a deferred payment; and

(ii) A deposit account.

(2) The term board of directors includes:

(i) In the case of a branch or agency of a foreign bank, the managing official in charge of the branch or agency; and

(ii) In the case of any other creditor that does not have a board of directors, a designated employee at the level of senior management.

(3) Covered account means:

(i) An account that a financial institution or creditor offers or maintains, primarily for personal, family, or household purposes, that involves or is designed to permit multiple payments or transactions, such as a credit card account, mortgage loan, automobile loan, margin account, cell phone account, utility account, checking account, or savings account; and

(ii) Any other account that the financial institution or creditor offers or maintains for which there is a reasonably foreseeable risk to customers or to the safety and soundness of the financial institution or creditor from identity theft, including financial, operational, compliance, reputation, or litigation risks.

(4) Credit has the same meaning as in 15 U.S.C. 1681a(r)(5).

(5) Creditor has the same meaning as in 15 U.S.C. 1681a(r)(5), and includes lenders such as banks, finance companies, automobile dealers, mortgage brokers, utility companies, and telecommunications companies.

(6) Customer means a person that has a covered account with a financial institution or creditor.

(7) Financial institution has the same meaning as in 15 U.S.C. 1681a(t).

(8) Identity theft has the same meaning as in 16 CFR 603.2(a).

(9) Red Flag means a pattern, practice, or specific activity that indicates the possible existence of identity theft.

(10) Service provider means a person that provides a service directly to the financial institution or creditor.

(c) Periodic Identification of Covered Accounts. Each financial institution or creditor must periodically determine whether it offers or maintains covered accounts. As a part of this determination, a financial institution or creditor must conduct a risk assessment to determine whether it offers or maintains covered accounts described in paragraph (b)(3)(ii) of this section, taking into consideration:

(1) The methods it provides to open its accounts;

(2) The methods it provides to access its accounts; and

(3) Its previous experiences with identity theft.

(d) Establishment of an Identity Theft Prevention Program.

 

(1) Program requirement. Each financial institution or creditor that offers or maintains one or more covered accounts must develop and implement a written Identity Theft Prevention Program (Program) that is designed to detect, prevent, and mitigate identity theft in connection with the opening of a covered account or any existing covered account. The Program must be appropriate to the size and complexity of the financial institution or creditor and the nature and scope of its activities.

(2) Elements of the Program. The Program must include reasonable policies and procedures to:

(i) Identify relevant Red Flags for the covered accounts that the financial institution or creditor offers or maintains, and incorporate those Red Flags into its Program;

(ii) Detect Red Flags that have been incorporated into the Program of the financial institution or creditor;

(iii) Respond appropriately to any Red Flags that are detected pursuant to paragraph (d)(2)(ii) of this section to prevent and mitigate identity theft; and

(iv) Ensure the Program (including the Red Flags determined to be relevant) is updated periodically, to reflect changes in risks to customers and to the safety and soundness of the financial institution or creditor from identity theft.

(e) Administration of the Program. Each financial institution or creditor that is required to implement a Program must provide for the continued administration of the Program and must:

 

(1) Obtain approval of the initial written Program from either its board of directors or an appropriate committee of the board of directors;

(2) Involve the board of directors, an appropriate committee thereof, or a designated employee at the level of senior management in the oversight, development, implementation and administration of the Program;

(3) Train staff, as necessary, to effectively implement the Program; and

(4) Exercise appropriate and effective oversight of service provider arrangements.

(f) Guidelines. Each financial institution or creditor that is required to implement a Program must consider the guidelines in Appendix J of this part and include in its Program those guidelines that are appropriate.

 

[Amended eff. 5/14/09, 74 FR 22639, 5/14/09]

 

Sec. 222.91 Duties of card issuers regarding changes of address. *

Editor's Note: This section is added effective 1/1/2008, with a mandatory compliance date of 11/1/2008.

(a) Scope. This section applies to a person described in § 222.90(a) that issues a debit or credit card (card issuer).

(b) Definitions. For purposes of this section:

(1) Cardholder means a consumer who has been issued a credit or debit card.

(2) Clear and conspicuous means reasonably understandable and designed to call attention to the nature and significance of the information presented.

(c) Address validation requirements. A card issuer must establish and implement reasonable policies and procedures to assess the validity of a change of address if it receives notification of a change of address for a consumer’s debit or credit card account and, within a short period of time afterwards (during at least the first 30 days after it receives such notification), the card issuer receives a request for an additional or replacement card for the same account. Under these circumstances, the card issuer may not issue an additional or replacement card, until, in accordance with its reasonable policies and procedures and for the purpose of assessing the validity of the change of address, the card issuer:

(1)(i) Notifies the cardholder of the request:

(A) At the cardholder’s former address; or

(B) By any other means of communication that the card issuer and the cardholder have previously agreed to use; and

(ii) Provides to the cardholder a reasonable means of promptly reporting incorrect address changes; or

(2) Otherwise assesses the validity of the change of address in accordance with the policies and procedures the card issuer has established pursuant to § 222.90 of this part.

(d) Alternative timing of address validation. A card issuer may satisfy the requirements of paragraph (c) of this section if it validates an address pursuant to the methods in paragraph (c)(1) or (c)(2) of this section when it receives an address change notification, before it receives a request for an additional or replacement card.

(e) Form of notice. Any written or electronic notice that the card issuer provides under this paragraph must be clear and conspicuous and provided separately from its regular correspondence with the cardholder.

APPENDICES

Appendix A – [Reserved]

Appendix B – Model Notices of Furnishing Negative Information

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this appendix of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Appendix B of its Regulation V.

Appendix C – Model Forms for Opt-Out Notices

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this appendix of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Appendix C of its Regulation V.

Appendix D [reserved]

Appendices F - G [reserved]

Appendix H—Model Forms for Risk-Based Pricing and Credit Score Disclosure Exception Notices

Regulation Subsection Info: 

Editor's Note: Effective December 30, 2011, this appendix of the Federal Reserve Board's Regulation V was republished by the Consumer Financial Protection Bureau as Appendix H of its Regulation V.

Appendix I [reserved]

APPENDIX J TO PART 222 - INTERAGENCY GUIDELINES ON IDENTITY THEFT DETECTION, PREVENTION, AND MITIGATION*

Editor's Note: This section is added effective 1/1/2008, with a mandatory compliance date of 11/1/2008.

Section 222.90 of this part requires each financial institution and creditor that offers or maintains one or more covered accounts, as defined in § 222.90(b)(3) of this part, to develop and provide for the continued administration of a written Program to detect, prevent, and mitigate identity theft in connection with the opening of a covered account or any existing covered account. These guidelines are intended to assist financial institutions and creditors in the formulation and maintenance of a Program that satisfies the requirements of § 222.90 of this part.

I. The Program

In designing its Program, a financial institution or creditor may incorporate, as appropriate, its existing policies, procedures, and other arrangements that control reasonably foreseeable risks to customers or to the safety and soundness of the financial institution or creditor from identity theft.

II. Identifying Relevant Red Flags

(a) Risk Factors. A financial institution or creditor should consider the following factors in identifying relevant Red Flags for covered accounts, as appropriate:

(1) The types of covered accounts it offers or maintains;

(2) The methods it provides to open its covered accounts;

(3) The methods it provides to access its covered accounts; and

(4) Its previous experiences with identity theft.

(b) Sources of Red Flags. Financial institutions and creditors should incorporate relevant Red Flags from sources such as:

(1) Incidents of identity theft that the financial institution or creditor has experienced;

(2) Methods of identity theft that the financial institution or creditor has identified that reflect changes in identity theft risks; and

(3) Applicable supervisory guidance.

(c) Categories of Red Flags. The Program should include relevant Red Flags from the following categories, as appropriate. Examples of Red Flags from each of these categories are appended as Supplement A to this Appendix J.

(1) Alerts, notifications, or other warnings received from consumer reporting agencies or service providers, such as fraud detection services;

(2) The presentation of suspicious documents;

(3) The presentation of suspicious personal identifying information, such as a suspicious address change;

(4) The unusual use of, or other suspicious activity related to, a covered account; and

(5) Notice from customers, victims of identity theft, law enforcement authorities, or other persons regarding possible identity theft in connection with covered accounts held by the financial institution or creditor.

III. Detecting Red Flags

The Program’s policies and procedures should address the detection of Red Flags in connection with the opening of covered accounts and existing covered accounts, such as by:

(a) Obtaining identifying information about, and verifying the identity of, a person opening a covered account, for example, using the policies and procedures regarding identification and verification set forth in the Customer Identification Program rules implementing 31 U.S.C. 5318(l) (31 CFR 103.121); and

(b) Authenticating customers, monitoring transactions, and verifying the validity of change of address requests, in the case of existing covered accounts.

IV. Preventing and Mitigating Identity Theft

The Program’s policies and procedures should provide for appropriate responses to the Red Flags the financial institution or creditor has detected that are commensurate with the degree of risk posed. In determining an appropriate response, a financial institution or creditor should consider aggravating factors that may heighten the risk of identity theft, such as a data security incident that results in unauthorized access to a customer’s account records held by the financial institution, creditor, or third party, or notice that a customer has provided information related to a covered account held by the financial institution or creditor to someone fraudulently claiming to represent the financial institution or creditor or to a fraudulent website. Appropriate responses may include the following:

(a) Monitoring a covered account for evidence of identity theft;

(b) Contacting the customer;

(c) Changing any passwords, security codes, or other security devices that permit access to a covered account;

(d) Reopening a covered account with a new account number;

(e) Not opening a new covered account;

(f) Closing an existing covered account;

(g) Not attempting to collect on a covered account or not selling a covered account to a debt collector;

(h) Notifying law enforcement; or

(i) Determining that no response is warranted under the particular circumstances.

V. Updating the Program

Financial institutions and creditors should update the Program (including the Red Flags determined to be relevant) periodically, to reflect changes in risks to customers or to the safety and soundness of the financial institution or creditor from identity theft, based on factors such as:

(a) The experiences of the financial institution or creditor with identity theft;

(b) Changes in methods of identity theft;

(c) Changes in methods to detect, prevent, and mitigate identity theft;

(d) Changes in the types of accounts that the financial institution or creditor offers or maintains; and

(e) Changes in the business arrangements of the financial institution or creditor, including mergers, acquisitions, alliances, joint ventures, and service provider arrangements.

VI. Methods for Administering the Program

(a) Oversight of Program. Oversight by the board of directors, an appropriate committee of the board, or a designated employee at the level of senior management should include:

(1) Assigning specific responsibility for the Program’s implementation;

(2) Reviewing reports prepared by staff regarding compliance by the financial institution or creditor with § 222.90 of this part; and

(3) Approving material changes to the Program as necessary to address changing identity theft risks.

(b) Reports. (1) In general. Staff of the financial institution or creditor responsible for development, implementation, and administration of its Program should report to the board of directors, an appropriate committee of the board, or a designated employee at the level of senior management, at least annually, on compliance by the financial institution or creditor with § 222.90 of this part.

(2) Contents of report. The report should address material matters related to the Program and evaluate issues such as: the effectiveness of the policies and procedures of the financial institution or creditor in addressing the risk of identity theft in connection with the opening of covered accounts and with respect to existing covered accounts; service provider arrangements; significant incidents involving identity theft and management’s response; and recommendations for material changes to the Program.

(c) Oversight of service provider arrangements. Whenever a financial institution or creditor engages a service provider to perform an activity in connection with one or more covered accounts the financial institution or creditor should take steps to ensure that the activity of the service provider is conducted in accordance with reasonable policies and procedures designed to detect, prevent, and mitigate the risk of identity theft. For example, a financial institution or creditor could require the service provider by contract to have policies and procedures to detect relevant Red Flags that may arise in the performance of the service provider’s activities, and either report the Red Flags to the financial institution or creditor, or to take appropriate steps to prevent or mitigate identity theft.

VII. Other Applicable Legal Requirements

Financial institutions and creditors should be mindful of other related legal requirements that may be applicable, such as:

(a) For financial institutions and creditors that are subject to 31 U.S.C. 5318(g), filing a Suspicious Activity Report in accordance with applicable law and regulation;

(b) Implementing any requirements under 15 U.S.C. 1681c-1(h) regarding the circumstances under which credit may be extended when the financial institution or creditor detects a fraud or active duty alert;

(c) Implementing any requirements for furnishers of information to consumer reporting agencies under 15 U.S.C. 1681s-2, for example, to correct or update inaccurate or incomplete information, and to not report information that the furnisher has reasonable cause to believe is inaccurate; and

(d) Complying with the prohibitions in 15 U.S.C. 1681m on the sale, transfer, and placement for collection of certain debts resulting from identity theft.

Regulation V - Supplement A to Appendix J *

In addition to incorporating Red Flags from the sources recommended in section II.b of the Guidelines in Appendix J of this part, each financial institution or creditor may consider incorporating into its Program Red Flags, whether singly or in combination, from the following illustrative examples in connection with covered accounts:

Alerts, Notifications or Warnings from a Consumer Reporting Agency

1. A fraud or active duty alert is included with a consumer report.

2. A consumer reporting agency provides a notice of credit freeze in response to a request for a consumer report.

3. A consumer reporting agency provides a notice of address discrepancy, as defined in § 222.82(b) of this part.

4. A consumer report indicates a pattern of activity that is inconsistent with the history and usual pattern of activity of an applicant or customer, such as:

a. A recent and significant increase in the volume of inquiries;

b. An unusual number of recently established credit relationships;

c. A material change in the use of credit, especially with respect to recently established credit relationships; or

d. An account that was closed for cause or identified for abuse of account privileges by a financial institution or creditor.

Suspicious Documents

5. Documents provided for identification appear to have been altered or forged.

6. The photograph or physical description on the identification is not consistent with the appearance of the applicant or customer presenting the identification.

7. Other information on the identification is not consistent with information provided by the person opening a new covered account or customer presenting the identification.

8. Other information on the identification is not consistent with readily accessible information that is on file with the financial institution or creditor, such as a signature card or a recent check.

9. An application appears to have been altered or forged, or gives the appearance of having been destroyed and reassembled.

Suspicious Personal Identifying Information

10. Personal identifying information provided is inconsistent when compared against external information sources used by the financial institution or creditor. For example:

a. The address does not match any address in the consumer report; or

b. The Social Security Number (SSN) has not been issued, or is listed on the Social Security Administration's Death Master File.

11. Personal identifying information provided by the customer is not consistent with other personal identifying information provided by the customer. For example, there is a lack of correlation between the SSN range and date of birth.

12. Personal identifying information provided is associated with known fraudulent activity as indicated by internal or third-party sources used by the financial institution or creditor. For example:

a. The address on an application is the same as the address provided on a fraudulent application; or

b. The phone number on an application is the same as the number provided on a fraudulent application.

13. Personal identifying information provided is of a type commonly associated with fraudulent activity as indicated by internal or third-party sources used by the financial institution or creditor. For example:

a. The address on an application is fictitious, a mail drop, or prison; or

b. The phone number is invalid, or is associated with a pager or answering service.

14. The SSN provided is the same as that submitted by other persons opening an account or other customers.

15. The address or telephone number provided is the same as or similar to the address or telephone number submitted by an unusually large number of other persons opening accounts or by other customers.

16. The person opening the covered account or the customer fails to provide all required personal identifying information on an application or in response to notification that the application is incomplete.

17. Personal identifying information provided is not consistent with personal identifying information that is on file with the financial institution or creditor.

18. For financial institutions and creditors that use challenge questions, the person opening the covered account or the customer cannot provide authenticating information beyond that which generally would be available from a wallet or consumer report.

Unusual Use of, or Suspicious Activity Related to, the Covered Account

19. Shortly following the notice of a change of address for a covered account, the institution or creditor receives a request for new, additional, or replacement cards or a cell phone, or for the addition of authorized users on the account.

20. A new revolving credit account is used in a manner commonly associated with known patterns of fraud. For example:

a. The majority of available credit is used for cash advances or merchandise that is easily convertible to cash (e.g., electronics equipment or jewelry); or

b. The customer fails to make the first payment or makes an initial payment but no subsequent payments.

21. A covered account is used in a manner that is not consistent with established patterns of activity on the account. There is, for example:

a. Nonpayment when there is no history of late or missed payments;

b. A material increase in the use of available credit;

c. A material change in purchasing or spending patterns;

d. A material change in electronic fund transfer patterns in connection with a deposit account; or

e. A material change in telephone call patterns in connection with a cellular phone account.

22. A covered account that has been inactive for a reasonably lengthy period of time is used (taking into consideration the type of account, the expected pattern of usage and other relevant factors).

23. Mail sent to the customer is returned repeatedly as undeliverable although transactions continue to be conducted in connection with the customer's covered account.

24. The financial institution or creditor is notified that the customer is not receiving paper account statements.

25. The financial institution or creditor is notified of unauthorized charges or transactions in connection with a customer's covered account.

Notice from Customers, Victims of Identity Theft, Law Enforcement Authorities, or Other Persons Regarding Possible Identity Theft in Connection with Covered Accounts Held by the Financial Institution or Creditor

26. The financial institution or creditor is notified by a customer, a victim of identity theft, a law enforcement authority, or any other person that it has opened a fraudulent account for a person engaged in identity theft.

[Amended eff. 5/14/09, 74 FR 22639, 5/14/09]

Recent Federal Register Documents Affecting this Regulation

Federal Register documents affecting this regulation:
FR CitationDateStatusComments
76 FR 416027/15/11Final; effective 8/15/2011Amends FRB risk-based pricing rules to require disclosure of credit scores and information relating to credit scores in risk-based pricing notices of a credit score of the cconsumer is used in setting material terms of credit. Reflects new FCRA §615(h) rerquirements added by § 1100F of the Dodd-Frank Act, effective 7/21/2011
76 FR 139023/15/10Proposed; Finalized 7/15/11Would require disclosure of credit scores and information relating to credit scores in risk-based pricing notices if a credit score of the consumer is used in setting the material terms of credit. These proposed amendments reflect the new requirements in section 615(h) of the FCRA that were added by section 1100F of the Dodd-Frank Act.
75 FR 27241/15/10Final; Eff. 1/1/11Final rule to implement the risk-based pricing provisions in section 311 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), which amends the Fair Credit Reporting Act (FCRA). Added Subpart H.
74 FR 6289012/1/09Final; Eff. 12/31/09 & 1/1/12Final rule adopting revised model form for disclosures under GLBA privacy rules. The 2012 effective date is for removal of vestiges of the old rule.
74 FR 314847/1/09Final Eff. 7/1/10eImplemented the accuracy and integrity and direct dispute provisions in section 312 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) that amended section 623 of the Fair Credit Reporting Act (FCRA). Added Subpart E.
74 FR 315297/1/09Advance Notice of Proposed Rulemaking (ANPR)Request for comment to gather information that would assist the Agencies in considering the development of a possible proposed addition to the furnisher accuracy and integrity guidelines published the same date (see above).
74 FR 226395/14/09Final; Eff. 1/1/10Technical corrections to final rules issued on 11/7/07 implementing the affliliate marketing provisions, and on 11/9/07 implementing the identity theft red flags and address discrepancy provisions, of FACTA. The 5/14/09 changes were immediately effective, except for changes to Appendix C, which took effect 1/1/10.
73 FR 28965 & 73 FR 308145/19/09 & 5/29/08Proposed; finalized on 1/5/10 (see above)Proposed rules to implement the risk-based pricing provisions in section 311 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), which amends the Fair Credit Reporting Act (FCRA).
72 FR 7094312/13/07Proposed; Finalized on 7/1/09 (see above)Proposed regulations and guidelines to implement the accuracy and integrity provisions in section 312 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act).
72 FR 6371711/9/07Final, but corrected on 5/14/09 (see above)Implementing §§ 114 and 315 of FACTA, relating to ID theft red flags and address change verification, and address discrepancies, respectively.
72 FR 6290911/7/07Final, but corrected on 5/14/09 (see above)Implementing § 214 of FACTA, relating to affiliate marketing.
71 FR 407857/18/06Proposed; finalized 11/9/07 (see above)Proposed rules and guidelines to implement §§ 114 and 315 of FACTA, relating to ID theft red flags and address change verification, and address discrepancies, respectively.
71 FR 144193/22/06Advance notice of proposed rulemaking (ANPR)Agencies sought comments to gather information useful for developing the guidelines and regulations required by section 312 of the Fair and Accurate Credit Transactions Act (FACT Act). See also entries for proposed (12/13/07) and final (7/1/09) rules, above.
70 FR 7066411/22/05 & 12/22/05 (corrections)Final; Eff. 4/1/06Implements amendments to FCRA made by § 411 of the FACT Act, relating to obtaining and using medical information in consumer reports and sharing same with affiliates. Delayed the effective date of the interim rule published on 6/10/05 (see entry below) until 4/1/06 .
70 FR 339576/10/05Interim Final; Eff. 3/7/06Implements amendments to FCRA made by § 411 of the FACT Act, relating to obtaining and using medical information in consumer reports and sharing same with affiliates. Replaced by final rule 11/22/05 (see entry above).
69 FR 7761012/28/04Final; Eff. 7/1/05Implements section 216 of the Fair and Accurate Credit Transactions Act of 2003 by amending the Interagency Guidelines Establishing Standards for Safeguarding Customer Information. Section 216 addresses proper disposal of consumer information from credit reports.
69 FR 425017/15/04Proposed; finalized 11/7/07 (see above)Proposed rules relating to information sharing with affiliates for marketing purposes.
69 FR 332816/15/04FinalAdds model notices that financial institutions may use to comply with the notice requirement relating to furnishing negative information contained in section 217 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act).
69 FR 332814/28/04Proposal;Proposal to implement amendments to FCRA by § 411 of the FACT Act, addressing obtaining, use and affiliate sharing of medical information in consumer reports.
69 FR 191234/12/04Proposal; finalized on 6/15/04 (see above)Proposal to add model form to be used with the notice requirement relating to furnishing negative information.
69 FR 65262/11/04FinalPublication of effective dates for FACT Act provisions.
68 FR 7452912/24/03Proposal; finalized on 2/11/04 (see above)The Agencies proposed rules that would establish a schedule of effective dates for many of the provisions of the FACT Act for which the Act itself does not specifically provide an effective date.
68 FR 7446712/24/03Interim final; eff. 12/31/03Established December 31, 2003, as the effective date for provisions of the FACT Act that determine the relationship between the Fair Credit Reporting Act (FCRA) and state laws and provisions that authorize rulemakings or other implementing action by various agencies.