FACT Negative Report Disclosure

Posted By: Anonymous

FACT Negative Report Disclosure - 06/23/04 10:31 PM

Has anyone given thought to if the new disclosure, required by 7/16, telling the customer you may give negative information to a credit reporting agency, would apply to deposit accounts? Technically, not "credit" by definition, but what if you have one of those OD programs?
Posted By: Andy_Z

Re: FACT Negative Report Disclosure - 06/24/04 02:31 PM

There is another thread on this but yes, it will as you look at Reg. B's definition, not Z.
Posted By: Ted Dreyer

Re: FACT Negative Report Disclosure - 06/24/04 02:50 PM


required by 7/16

If you reread the regulation, the model notice language is final as of 7/16 but the requirement to give the notice contained in section 217 of the FACT Act has an effective date of December 1.
Posted By: Anonymous

Re: FACT Negative Report Disclosure - 06/24/04 03:07 PM

I looked for it before I posted, but apparently missed it. Any help you can give me to point me in the right direction will be appreciated.
Posted By: Ted Dreyer

Re: FACT Negative Report Disclosure - 06/24/04 04:47 PM

The document with the model notices is at:


On page 2 it says:

"Section 217 of the FACT Act requires that if any financial institution (1) extends credit and regularly and in the ordinary course of business furnishes information to a nationwide consumer reporting agency, and (2) furnishes negative information to such an agency regarding credit extended to a customer, the institution must provide a clear and conspicuous notice about furnishing negative information, in writing, to the customer. Section 217 defines the term “negative information” to mean information concerning a customer’s delinquencies, late payments, insolvency, or any form of default. The term “credit” is defined under the FACT Act to have the same meaning as in section 702 of the Equal Credit Opportunity Act, which defines “credit” to mean “the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment or to purchase property or services and defer payment therefor.” 15 U.S.C. 1691a. The provisions in Section 217 will become effective December 1, 2004. 69 FR 6526, (February 11, 2004)."
Posted By: Anonymous

Re: FACT Negative Report Disclosure - 06/24/04 07:13 PM

Thanks! I have the document, but I was looking for the thread that discussed the impact on deposit accounts that Andy referred to. Appreciate the help!!!!!