[Federal Register Volume 68, Number 247 (Wednesday, December 24, 2003)]
[Notices]
[Page 74582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-31715]


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FEDERAL TRADE COMMISSION


Charges for Certain Disclosures

AGENCY: Federal Trade Commission.

ACTION: Notice regarding charges for certain disclosures.

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SUMMARY: The Federal Trade Commission announces that the current $9.00 
ceiling on allowable charges under Section 612(f) of the Fair Credit 
Reporting Act (``FCRA'') will remain unchanged for 2003. Under 1996 
amendments to the FCRA, the Federal Trade Commission is required to 
increase the $8.00 amount referred to in paragraph (1)(A)(i) of Section 
612(f) on January 1 of each year, based proportionally on changes in 
the Consumer Price Index (``CPI''), with fractional changes rounded to 
the nearest fifty cents. The CPI increased 14.89 percent between 
September 1997, the date the FCRA amendments took effect, and September 
2003. This increase in the CPI and the requirement that any increase be 
rounded to the nearest fifty cents results in no change in the current 
maximum allowable charge of $9.00.

EFFECTIVE DATE: January 1, 2004.

ADDRESSES: Federal Trade Commission, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Keith B. Anderson, Bureau of 
Economics, Federal Trade Commission, Washington, DC 20580, 202-326-
3428.

SUPPLEMENTARY INFORMATION:
    Section 612(f)(1)(A) of the Fair Credit Reporting Act, which became 
effective in 1997, provides that a consumer reporting agency may charge 
a consumer a reasonable amount for making a disclosure to the consumer 
pursuant to section 609 of the Act, in those cases where the FCRA does 
not require the disclosure to be made without charge.\1\ The law states 
that, where a consumer reporting agency is permitted to impose a 
reasonable charge on a consumer for making a disclosure to the consumer 
pursuant to Section 609, the charge shall not exceed $8 and shall be 
indicated to the consumer before making the disclosure. Section 
612(f)(2) goes on to state that the Federal Trade Commission (``the 
Commission'') shall increase the $8.00 maximum amount on January 1 of 
each year, based proportionally on changes in the Consumer Price Index, 
with fractional changes rounded to the nearest fifty cents.
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    \1\ This provision, originally Section 612(a), was added to the 
FCRA in September 1996 and became effective in September 1997. It 
was relabeled Section 612(f) by Section 211(a) of the Fair and 
Accurate Credit Transactions Act of 1003 (``FACT Act''), Public Law 
108-159, which was signed into law on December 4, 2003. Because 
Section 211(a) of the FACT Act provides for free annual disclosures, 
assessment of this charge will be less frequent, but will still 
apply to a consumer who has already received a free annual 
disclosure and doesn't otherwise qualify for an additional free 
disclosure. The charge will also be permitted until the free annual 
disclosure requirement becomes effective.
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    The Commission considers the $8 amount referred to in paragraph 
(1)(A)(i) of Section 612(f) to be the baseline for the effective 
ceiling on reasonable charges dating from the effective date of the 
amended FCRA, i.e., September 30, 1997. Each year the Commission 
calculates the proportional increase in the Consumer Price Index (using 
the most general CPI, which is for all urban consumers, all items) from 
September 1997 to September of the current year. The Commission then 
determines what modification, if any, from the original base of $8 
should be made effective on January 1 of the subsequent year, given the 
requirement that fractional changes be rounded to the nearest fifty 
cents.
    Between September 1997 and September 2003, the Consumer Price Index 
for all urban consumers and all items increased by 14.89 percent--from 
an index value of 161.2 in September 1997 to a value of 185.2 in 
September 2003. An increase of 14.89 percent in the $8.00 base figure 
would lead to a new figure of $9.19. However, because the statute 
directs that the resulting figure be rounded to the nearest $0.50, the 
allowable charge should be $9.00.
    The Commission therefore determines that the allowable charge for 
the year 2004 will remain unchanged at $9.00.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 03-31715 Filed 12-23-03; 8:45 am]
BILLING CODE 6750-01-M