Skip to content
BOL Conferences
Page 1 of 2 1 2
Thread Options
#278749 - 11/23/04 01:24 PM suggested policy for FCRA
pjs Offline
10K Club
pjs
Joined: Aug 2004
Posts: 10,321
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.

Return to Top
#278750 - 11/23/04 03:23 PM Re: suggested policy for FCRA
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Thanks for the info on Kirchman's Fact Act Policy!
_________________________
Just working here until I get my letter from Hogwarts.

Return to Top
#278751 - 11/23/04 04:42 PM Re: suggested policy for FCRA
Cat Woman Offline
Diamond Poster
Cat Woman
Joined: Sep 2004
Posts: 1,342
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.

Return to Top
#278752 - 11/23/04 04:44 PM Re: suggested policy for FCRA
someone else Offline
Power Poster
someone else
Joined: Aug 2004
Posts: 3,300
back to my roots
We are adding the verbiage to all Mortgage Statements each month.
_________________________
Somewhere, something incredible is waiting to be known. - Carl Sagan

Return to Top
#278753 - 11/23/04 05:01 PM Re: suggested policy for FCRA
Cat Woman Offline
Diamond Poster
Cat Woman
Joined: Sep 2004
Posts: 1,342
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?

Return to Top
#278754 - 11/23/04 05:05 PM Re: suggested policy for FCRA
someone else Offline
Power Poster
someone else
Joined: Aug 2004
Posts: 3,300
back to my roots
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.
_________________________
Somewhere, something incredible is waiting to be known. - Carl Sagan

Return to Top
#278755 - 11/23/04 06:48 PM Re: suggested policy for FCRA
SJB Offline
Diamond Poster
SJB
Joined: Jun 2002
Posts: 1,210
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?
_________________________
My opinions are not legal advice and are worth what you paid for them.

Return to Top
#278756 - 11/23/04 06:54 PM Re: suggested policy for FCRA
someone else Offline
Power Poster
someone else
Joined: Aug 2004
Posts: 3,300
back to my roots
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.
_________________________
Somewhere, something incredible is waiting to be known. - Carl Sagan

Return to Top
#278757 - 11/23/04 09:22 PM Re: suggested policy for FCRA
Anonymous
Unregistered

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.



Return to Top
#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........

Return to Top
#278759 - 11/23/04 10:14 PM Re: suggested policy for FCRA
La. Lady Offline
Diamond Poster
La. Lady
Joined: May 2001
Posts: 1,873
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.
_________________________
Riding the waves of change.....2014

Return to Top
#278760 - 11/24/04 02:40 PM Re: suggested policy for FCRA
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
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.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#278761 - 11/24/04 04:21 PM Re: suggested policy for FCRA
Nanwa Offline
Power Poster
Nanwa
Joined: Oct 2001
Posts: 5,564
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?
_________________________
Member of the National Sarcasm Society - like we need your support!

Return to Top
#278762 - 11/24/04 04:46 PM Re: suggested policy for FCRA
Peridot Offline
100 Club
Joined: Jan 2004
Posts: 121
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.
_________________________
My opinions are definitely my own; who else would want them!

Return to Top
#278763 - 11/24/04 06:14 PM Re: suggested policy for FCRA
Anonymous
Unregistered

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!

Return to Top
#278764 - 11/24/04 06:39 PM Re: suggested policy for FCRA
MaryRink Offline
Gold Star
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.

Return to Top
#278765 - 11/24/04 07:02 PM Re: suggested policy for FCRA
someone else Offline
Power Poster
someone else
Joined: Aug 2004
Posts: 3,300
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!
_________________________
Somewhere, something incredible is waiting to be known. - Carl Sagan

Return to Top
#278766 - 11/24/04 07:03 PM Re: suggested policy for FCRA
waldensouth Offline
Power Poster
waldensouth
Joined: Nov 2001
Posts: 7,983
FINALLY ABOVE the gnat line
Is that just the printed book or is it the on-line version as well?
_________________________
"Once you learn to read, you will be forever free."

- Frederick Douglass




My Opinion Only.

Return to Top
#278767 - 11/24/04 08:59 PM Re: suggested policy for FCRA
Happy Offline
Gold Star
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.

Return to Top
#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?

Return to Top
#278769 - 11/24/04 09:30 PM Re: suggested policy for FCRA
someone else Offline
Power Poster
someone else
Joined: Aug 2004
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.
_________________________
Somewhere, something incredible is waiting to be known. - Carl Sagan

Return to Top
#278770 - 11/24/04 09:31 PM Re: suggested policy for FCRA
Happy Offline
Gold Star
Happy
Joined: Jan 2002
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

Return to Top
#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?

Return to Top
#278772 - 11/24/04 09:42 PM Re: suggested policy for FCRA
someone else Offline
Power Poster
someone else
Joined: Aug 2004
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.
_________________________
Somewhere, something incredible is waiting to be known. - Carl Sagan

Return to Top
#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

?????

Return to Top
Page 1 of 2 1 2