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FACT Act Negative Notice Disclosure

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Question: 
Our Loan processor has added the capability to print out the FACT Act Negative Notice Disclosure with the new loan paperwork. The Negative Notice is a separate document. My concern is the Notice would be considered being included in the initial disclosures. I understand that the Negative Notice could not be provided with the initial disclosures under the Truth in Lending Act.
Answer: 

The FCRA prohibits including the Negative Report Disclosure in the disclosures under TILA Section 127(a), which are the basic open end credit disclosures. So just be certain not to include the FCRA disclosure in those disclosures themselves. You should still be able to provide the FCRA Section 623(a)(7) Negative Information disclosure, albeit in a separate document, when granting open end credit.

[Author's note: This answer was updated upon receipt of a comment, for which I thank an alert BOL reader.]

First published on BankersOnline.com 07/04/05; updated 08/15/05

First published on 08/15/2005

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