Changes in FTC FCRA Rules

Posted By: TeamComply

Changes in FTC FCRA Rules - 09/09/21 02:25 PM

In today's BO's Compliance Briefing there was a tidbit on Changes to FTC FCRA Rules approved. We are involved in indirect lending, so just to clarify this change by the FTC basically states these rules apply to motor vehicle dealers (under the FTC's authority). And these FCRA rules still apply to financial institutions under the CFPB's authority. Do I have this correct?
Posted By: rlcarey

Re: Changes in FTC FCRA Rules - 09/09/21 02:32 PM

The FTC regulates motor vehicle dealers through there own regulations. The CFPB regulates financial institutions through Regulation V.
Posted By: TeamComply

Re: Changes in FTC FCRA Rules - 09/09/21 02:39 PM

So this change just clarifies that the rules apply to motor vehicle dealers?
So these rules never previously applied to motor vehicle dealers?
Posted By: rlcarey

Re: Changes in FTC FCRA Rules - 09/09/21 02:45 PM

Have you read the press release?

https://www.ftc.gov/news-events/press-releases/2021/09/ftc-approves-changes-five-fcra-rules
Posted By: TeamComply

Re: Changes in FTC FCRA Rules - 09/09/21 04:19 PM

Yes.

And it states in part that: "In separate notices, which will be published in the Federal Register shortly, the FTC approved largely technical changes that would clarify that five FCRA rules enforced by the FTC apply only to motor vehicle dealers."

So these rules were previously in place under the the FTC authority, but didn't specifically indicate that the rules applied only to motor vehicle dealers?
Posted By: rlcarey

Re: Changes in FTC FCRA Rules - 09/09/21 04:34 PM

The FTC rules are found under 16 CFR Subchapter F - FAIR CREDIT REPORTING ACT

Some of the FTC rules already specify that it only pertains to motor vehicle dealers and some do not. I guess we are going to have to wait until the revised rules are published in the FR to see the exact changes. The DFA limited the FTC's enforcement authority to motor vehicle dealers regardless of whether the rules specifically said it or not.
Posted By: rlcarey

Re: Changes in FTC FCRA Rules - 09/17/21 07:31 PM

They were published today in the FR: https://www.govinfo.gov/content/pkg/FR-2021-09-17/pdf/FR-2021-09-17.pdf