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Updating Loan Policy to Reflect FACTA Changes

I am in the process of updating my loan policy to reflect recent changes to FACTA and predatory lending. I was going to just add a general statement to the policy stating that we comply with the changes in the FACT Act. Should I elaborate more in my policy and do I need to outline the entire Act in my procedures? What recent changes that I may have missed that need to be added to adjusted to my policy?

The BOL FACTA/FCRA page has several sections, including charts produced by Lucy Griffin, that will assist you in a section by section analysis of what impact this has on you.

And I would caution anyone wanting to be FACTA compliant that this is an amendment to the FCRA. The FCRA in its entirety cannot be ignored at the insertion of only FACTA sections, or you will set yourself up for failure.

You will have to determine how detailed you want your procedures to be. If you transfer the applicable FCRA sections to procedures that are easily read, understood and implemented by your employees, they will be effective and that is all that is needed. Referring to the FCRA may be an option for very special projects, but I wouldn't do that for a day-to-day activity.

First published on 11/07/05

First published on 11/07/2005

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