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#278749 - 11/23/04 01:24 PM suggested policy for FCRA
pjs Offline
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pjs
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Posts: 10,319
oHiO
Kirchman came out with a suggested policy for complying with the Fair Credit Reporting Act which includes the FACT Act- you can read it at Kirchman.com - click Compliance and then Hot Topics. Good Luck.

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#278750 - 11/23/04 03:23 PM Re: suggested policy for FCRA
HRH Okie Banker Offline
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Oklahoma
Thanks for the info on Kirchman's Fact Act Policy!
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#278751 - 11/23/04 04:42 PM Re: suggested policy for FCRA
Cat Woman Offline
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New England
I have a question regarding the suggested policy that Kirchman posted. Under the section "Reporting Negative Information," it states that "the Bank shall mail a copy of that notice to all pre-existing consumer loan customers with the [fill in mass mailing event, such as the annual privacy disclosure or a planned marketing mailing]." "That notice" is the Federal Reserve Model B-1. Is anyone else sending this notice out to all pre-existing customers with loans? We were only planning on adding this wording to our current letters sent out to members when they're late, delinqent, etc.

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#278752 - 11/23/04 04:44 PM Re: suggested policy for FCRA
someone else Offline
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someone else
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We are adding the verbiage to all Mortgage Statements each month.
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#278753 - 11/23/04 05:01 PM Re: suggested policy for FCRA
Cat Woman Offline
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Cat Woman
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New England
But what about car loans, VISAs, etc.? Are you telling all of your pre-existing customers before they are even late on payments? Or are you just relying on the late notices to provide the language that they may be reported to a credit bureau?

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#278754 - 11/23/04 05:05 PM Re: suggested policy for FCRA
someone else Offline
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Actually I just work in Mortgage Lending Compliance but I believe that all of Consumer Lending is following the same example. The verbiage will be added to all statements, whether they are late with their payments or not. This way we capture ALL borrowers, old and new, and can be considered compliant. I believe the verbiage goes out on all statements beginning 12/01/04 for us.
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#278755 - 11/23/04 06:48 PM Re: suggested policy for FCRA
SJB Offline
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California
Not that easy - there is a thread about how the notice has to go to each borrower by separate envelope. Will your system do that?
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#278756 - 11/23/04 06:54 PM Re: suggested policy for FCRA
someone else Offline
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I have been assured by the servicing department that they are a "go" for this. But who knows, right? I have a feeling we are ALL going to be fumbling through this for the first few weeks.
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#278757 - 11/23/04 09:22 PM Re: suggested policy for FCRA
Anonymous
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Quote:

I have been assured by the servicing department that they are a "go" for this. But who knows, right? I have a feeling we are ALL going to be fumbling through this for the first few weeks.



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#278758 - 11/23/04 09:32 PM Re: suggested policy for FCRA
Anonymous
Unregistered

Sorry, I hit the wrong button and I was the last "blank" post.

On the topic of the negative notice (I know, I know, we've beat it to death already) but I do have something funny to add to the discussion.

We made the decision not do any kind of mass mailing and we also did not like the upfront disclosure option. So we decided to add it to our late notices (both open-end lines, closed-end loans, ready reserve late notices, etc.) We are getting a fair number of calls from customers asking if we would "really report them to the credit bureau if they are late?". It's like they can't believe we would do that to them........ DAH.............Hello, is there coffee brewing and can you smell it?

We howl with laughter everytime we get these calls..........maybe the new notice requirement wasn't such a bad idea after all, since so many consumers don't seem to have a clue. Come to think of it, it's probably more scary, than funny........

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#278759 - 11/23/04 10:14 PM Re: suggested policy for FCRA
La. Lady Offline
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Quote:

I have a question regarding the suggested policy that Kirchman posted. Under the section "Reporting Negative Information," it states that "the Bank shall mail a copy of that notice to all pre-existing consumer loan customers with the [fill in mass mailing event, such as the annual privacy disclosure or a planned marketing mailing]." "That notice" is the Federal Reserve Model B-1. Is anyone else sending this notice out to all pre-existing customers with loans? We were only planning on adding this wording to our current letters sent out to members when they're late, delinqent, etc.




Ok...I must have been sleeping again when this thing started. But I thought that you only had to advise the consumer about the Negative Information reporting prior to or no later than 30 days after furnishing the negative information to a consumer reporting agency. We are posting it to our second default notice.........only......no mass mailing......I don't remember seeing anything about "mass mailing in separate envelopes", but hey...as I said, guess I dozed off.....could someone point me to that information.

Thanks.
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#278760 - 11/24/04 02:40 PM Re: suggested policy for FCRA
RR Joker Offline
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The Swamp
Quote:

Quote:

I have a question regarding the suggested policy that Kirchman posted. Under the section "Reporting Negative Information," it states that "the Bank shall mail a copy of that notice to all pre-existing consumer loan customers with the [fill in mass mailing event, such as the annual privacy disclosure or a planned marketing mailing]." "That notice" is the Federal Reserve Model B-1. Is anyone else sending this notice out to all pre-existing customers with loans? We were only planning on adding this wording to our current letters sent out to members when they're late, delinqent, etc.




Ok...I must have been sleeping again when this thing started. But I thought that you only had to advise the consumer about the Negative Information reporting prior to or no later than 30 days after furnishing the negative information to a consumer reporting agency. We are posting it to our second default notice.........only......no mass mailing......I don't remember seeing anything about "mass mailing in separate envelopes", but hey...as I said, guess I dozed off.....could someone point me to that information.

Thanks.




We are only sending the notice with delinquent notices as well. What you want to be sure of is that if you have borrower's at different addresses, that each address gets a notice. I believe it has been reasonably cleared with most regulatory agencies that borrowers at same address can receive a "joint" notice. (see thread named something like "2 negative notices required" to find the thread others are referring to.
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#278761 - 11/24/04 04:21 PM Re: suggested policy for FCRA
Nanwa Offline
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Joined: Oct 2001
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Clintonville, WI, USA
We are only sending the negative info notice on the delinquency notices since they are the ones we will be reporting. And on letters for overdrafts that go to collection.

Is anyone as bummed as I am that Kirchaman is going to charge us $1,995 annually for access to the Big Orange Book?
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#278762 - 11/24/04 04:46 PM Re: suggested policy for FCRA
Peridot Offline
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Joined: Jan 2004
Posts: 119
Rural Minnesota
I am with you Nanwa, I just received notification in the mail today from Kirchman. I think I am going to bite the bullet and pay the fee. I have relied on them for so many years that I think it would be a real loss not to have them on my side.
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#278763 - 11/24/04 06:14 PM Re: suggested policy for FCRA
Anonymous
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I had not heard that Kirchman is going to be charging. That is huge, as I rely on them almost everyday as well. I'm not sure how that will go over with my board - it's kind of spendy! Thanks for the heads up!

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#278764 - 11/24/04 06:39 PM Re: suggested policy for FCRA
MaryRink Offline
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Joined: Jul 2003
Posts: 306
Northern MN
Just received my letter from Kirchman also. They will be charging $1995 annual fee for their Premium Membership. Kirchman states, "It is priced so that it is easily affordable to every bank and no bank can afford not to be a member." Kirchman is a great compliance source, but I'm not going to pay almost two grand for it.

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#278765 - 11/24/04 07:02 PM Re: suggested policy for FCRA
someone else Offline
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back to my roots
No kidding! I mean, if you want to start charging for your services, fine. That's the American way. However, could you ease us into the transition? Maybe charge $500 the first year, $800 the next, and so on? I bet their subscriptions will drop by half. I know we will not be purchasing it. And why should we? There are so many other great resources out there like BOL and AllRegs that the Big Orange Book is just not necessary!
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#278766 - 11/24/04 07:03 PM Re: suggested policy for FCRA
waldensouth Offline
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FINALLY ABOVE the gnat line
Is that just the printed book or is it the on-line version as well?
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#278767 - 11/24/04 08:59 PM Re: suggested policy for FCRA
Happy Offline
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Happy
Joined: Jan 2002
Posts: 282
I was wondering the same thing. Will we be able to access the online version or will it be password protected, i.e for members only? I was not able to discern that from the letter we received. Bummer deal.

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#278768 - 11/24/04 09:23 PM Re: suggested policy for FCRA
Anonymous
Unregistered

I can't find the sample policy on Kirchman - I'm probably looking right at it, but could someone help? I looked on the hot issues page, but didn't see it?

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#278769 - 11/24/04 09:30 PM Re: suggested policy for FCRA
someone else Offline
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someone else
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Posts: 3,300
back to my roots
Now click on Fair Credit Reporting Act (which is the first one) and it will bring you directly to the sample policy.
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Somewhere, something incredible is waiting to be known. - Carl Sagan

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#278770 - 11/24/04 09:31 PM Re: suggested policy for FCRA
Happy Offline
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Happy
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Posts: 282
It is on the top of the hot issues page. Called Fair Credit Reporting Act (including FACT ACT) Policy | NEW! | Dateline 11/04

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#278771 - 11/24/04 09:33 PM Re: suggested policy for FCRA
Anonymous
Unregistered

I hope I don't sound like a complete idiot, I still can't find it - my first topic is about reg Z - do you have to be a member or anything?

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#278772 - 11/24/04 09:42 PM Re: suggested policy for FCRA
someone else Offline
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someone else
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Posts: 3,300
back to my roots
Check out this link to Kirchman. Scroll down to the section entitled Hot Issues. Click on the link. The first item listed should be the FCRA policy.
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Somewhere, something incredible is waiting to be known. - Carl Sagan

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#278773 - 11/24/04 09:49 PM Re: suggested policy for FCRA
Anonymous
Unregistered

This is what I'm getting with (the first item):

Hot Issues
Updated 10 | 22 | 2004

Note: HOEPA materials have been moved to the Support Materials page.

Beware…A New Interpretation of Finance Charges Under Regulation Z
| NEW! | Dateline 10/04

?????

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