On August 24, 2020 the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (NPRM) that would update several rules contained in the Fair Credit Reporting Act (FCRA) with provisions contained in the Dodd-Frank Act.
It is important to consider that rules under the FCRA that impact auto dealers are issued by the FTC. FCRA rules that impact financial institutions are issued by the Consumer Financial Protection Bureau.
The FTC issued five separate NPRMs that propose changes to the following rules as they apply to auto dealers:
- Address Discrepancy Rule, which outlines the obligations of users of consumer reports when they receive a notice of address discrepancy from a nationwide consumer reporting agency (CRA);
- Affiliate Marketing Rule, which gives consumers the right to restrict a person from using certain information obtained from an affiliate to make solicitations to the consumer;
- Furnisher Rule, which requires entities that furnish information to CRAs to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of the information relating to consumers provided to a CRA;
- Pre-screen Opt-Out Notice Rule, which outlines requirements for those who use consumer report information to make unsolicited credit or insurance offers to consumers; and
- Risk-Based Pricing Rule, which requires those who use information from a consumer report to offer less favorable terms to consumers to provide them with a notice about the use of such data.
The comment on each of the NPRMs expires 75 days after publication in the Federal Register, which is expected soon.