[Federal Register Volume 71, Number 239 (Wednesday, December 13, 2006)]
[Notices]
[Pages 74913-74914]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-21196]


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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 ceiling on 
allowable charges under Section 612(f) of the Fair Credit Reporting Act 
(``FCRA'') will remain unchanged at $10.00 for 2007. 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 25.88 percent between 
September 1997, the date the FCRA amendments took effect, and September 
2006. 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 $10.00.

DATES: Effective Date: January 1, 2007.

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.\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) states 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)(1) of the Fair and 
Accurate Credit Transactions Act of 2003 (``FACT Act''), Public Law 
108-159, which was signed into law on December 4, 2003.
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    Section 211(a)(2) of the Fair and Accurate Credit Transactions Act 
of 2003 (``FACT Act'') added a new Section 612(a) to the FCRA that 
gives consumers the right to request free annual disclosures once every 
12 months. The maximum allowable charge established by this Notice does 
not apply to requests made under that provision. The charge will, 
however, apply when a consumer who orders a file disclosure has already 
received a free annual disclosure and does not otherwise qualify for an 
additional free disclosure.
    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 2006, the Consumer Price Index 
for all urban consumers and all items increased by 25.88 percent--from 
an index value of 161.2 in September 1997 to a value of 202.9 in 
September 2005. An increase of 25.88 percent in the $8.00 base figure 
would lead to a new figure of $10.07. However, because the statute 
directs that the resulting figure be rounded to the nearest $0.50, the 
allowable charge should be $10.00.
    The Commission therefore determines that the allowable charge for 
the year 2007 will remain unchanged at $10.00.


[[Page 74914]]


    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. E6-21196 Filed 12-12-06; 8:45 am]
BILLING CODE 6750-01-P