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Friday, October 24, 2014

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Compliance Corner: Third Quarter 2005

Compliance Alert: Agencies Issue Interim Final Rules for FACT Act Medical Information Provision

On June 10, 2005, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision published interim final rules to implement section 411 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act).

The rules create exceptions to the statute’s general prohibition on creditors obtaining or using medical information pertaining to a consumer in connection with any determination of the consumer’s eligibility, or continued eligibility, for all credit, except as permitted by regulations or the FACT Act. The exceptions permit creditors to obtain or use medical information in connection with credit eligibility determinations where necessary and appropriate for legitimate purposes. The interim final rules also specify the circumstances in which creditors may share medical information with affiliates without becoming consumer reporting agencies.

The interim final rules are effective March 7, 2006. The complete text of the rules can be found at Federal Reserve Board’s website.External Link

The views expressed in this article are those of the author and are not necessarily those of this Reserve Bank or the Federal Reserve System.