[Federal Register Volume 84, Number 21 (Thursday, January 31, 2019)]
[Rules and Regulations]
[Pages 515-517]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-28372]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1022

RIN 3170-AA94


Fair Credit Reporting Act Disclosures

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
amending Regulation V, which implements the Fair Credit Reporting Act 
(FCRA), to add a section establishing a maximum allowable charge for 
disclosures by a consumer reporting agency to a consumer pursuant to 
FCRA section 609. The Bureau is also amending Regulation V to add an 
appendix setting forth the statutory requirements for determining the 
maximum allowable charge; announcing the maximum charge for 2019; and 
preserving a list of historical maximum allowable charges. 
Historically, the Bureau has published these FCRA annual adjustments as 
a notice. The Bureau is now codifying those notices and adding a 
provision to Regulation V to track the FCRA's provisions concerning the 
annual maximum allowable charge.

DATES: Effective date: This rule is effective January 31, 2019.
    Applicability date: This rule is applicable on January 1, 2019, 
consistent with relevant statutory provisions.

FOR FURTHER INFORMATION CONTACT: Seth Caffrey, Senior Counsel; or 
Monique Chenault, Paralegal Specialist at (202) 435-7700 or https://reginquiries.consumerfinance.gov. If you require this document in an 
alternative electronic format, please contact 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Under section 609 of the FCRA, a consumer reporting agency must, 
upon a consumer's request, disclose to the consumer information in the 
consumer's file.\1\ Section 612(a) of the FCRA gives consumers the 
right to a free file disclosure upon request once every 12 months from 
the nationwide consumer reporting agencies and nationwide specialty 
consumer reporting agencies.\2\ Section 612 of the FCRA also gives 
consumers the right to a free file disclosure under certain other, 
specified circumstances.\3\ Where the consumer is not entitled to a 
free file disclosure, section 612(f)(1)(A) of the FCRA provides that a 
consumer reporting agency may impose a reasonable charge on a consumer 
for making a file disclosure. Section 612(f)(1)(A) of the FCRA provides 
that the charge for such a disclosure shall not exceed $8.00 and shall 
be indicated to the consumer before making the file disclosure.\4\
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    \1\ 15 U.S.C. 1681g.
    \2\ 15 U.S.C. 1681j(a).
    \3\ 15 U.S.C. 1681j(b)-(d). The maximum allowable charge 
announced by the Bureau does not apply to requests made under 
Section 612(a)-(d) of the FCRA. The charge does apply when a 
consumer who orders a file disclosure has already received a free 
annual file disclosure and does not otherwise qualify for an 
additional free file disclosure.
    \4\ 15 U.S.C. 1681j(f)(1)(A).
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    Section 612(f)(2) of the FCRA also states that the $8.00 maximum 
amount shall increase on January 1 of each year,

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based proportionally on changes in the Consumer Price Index, with 
fractional changes rounded to the nearest fifty cents.\5\ Such 
increases are based on the Consumer Price Index for All Urban Consumers 
(CPI-U), which is the most general Consumer Price Index and covers all 
urban consumers and all items.
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    \5\ 15 U.S.C. 1681j(f)(2).
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    Prior to 2011, the Federal Trade Commission (FTC) set the maximum 
allowable charge under section 612(f) of the FCRA (the ``annual 
adjustment''). The FTC set these amounts by issuing a notice rather 
than by issuing a rule. In 2011, the responsibility for setting the 
maximum allowable charge transferred from the FTC to the Bureau 
pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection 
Act (Dodd-Frank Act).\6\ Consistent with the FTC's historical practice, 
the Bureau has continued to publish the FCRA annual adjustment as a 
notice.\7\ To underscore for stakeholders that the FCRA annual 
adjustment amount is legally binding, the Bureau is now issuing a final 
rule to add a provision to Regulation V (Fair Credit Reporting) to 
codify a maximum allowable charge for disclosures by a consumer 
reporting agency to a consumer pursuant to FCRA section 609 and to 
announce the annual maximum allowable charge.
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    \6\ Public Law 111-203, section 1088, 124 Stat. 2086 (2010).
    \7\ 77 FR 20011 (Apr. 3, 2012); 77 FR 74831 (Dec. 18, 2012), 78 
FR 79410 (Dec. 30, 2013); 79 FR 74068 (Dec. 15, 2014); 80 FR 72711 
(Nov. 20, 2015); 81 FR 81745 (Nov. 18, 2016); 82 FR 53481 (Nov. 16, 
2017).
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II. 2019 Annual Adjustment

    For 2019, the ceiling on allowable charges under section 612(f) of 
the FCRA will be $12.50. The Bureau is using the $8.00 amount set forth 
in section 612(f)(1)(A)(i) of the FCRA as the baseline for its 
calculation of the increase in the ceiling on reasonable charges for 
certain disclosures made under section 609 of the FCRA. Since the 
effective date of section 612(a) was September 30, 1997, the Bureau 
calculated the proportional increase in the CPI-U from September 1997 
to September 2018. The Bureau then determined what modification, if 
any, from the original base of $8.00 should be made effective for 2019, 
given the requirement that fractional changes be rounded to the nearest 
fifty cents.
    Between September 1997 and September 2018, the CPI-U increased by 
56.59 percent from an index value of 161.2 in September 1997 to a value 
of 252.439 in September 2018. An increase of 56.59 percent in the $8.00 
base figure would lead to a figure of $12.53. However, because the 
statute directs that the resulting figure be rounded to the nearest 
$0.50, the maximum allowable charge is $12.50. The Bureau therefore 
determines that the maximum allowable charge for the year 2019 will be 
$12.50.

III. Legal Authority and Effective Date

    The Bureau issues this rule pursuant to its authority under the 
FCRA and the Dodd-Frank Act. Effective July 21, 2011, section 1061 of 
the Dodd-Frank Act \8\ transferred to the Bureau the rulemaking and 
certain other authorities of the FTC and the prudential regulators 
relating to the enumerated consumer laws, including most rulemaking 
authority under the FCRA.\9\ Likewise, section 1088 of the Dodd-Frank 
Act made conforming amendments to the FCRA, transferring rulemaking 
authority under much of the FCRA to the Bureau.\10\ As amended by the 
Dodd-Frank Act, the FCRA generally authorizes the Bureau to issue 
regulations ``as may be necessary or appropriate to administer and 
carry out the purposes and objectives of [the FCRA], and to prevent 
evasions thereof or to facilitate compliance therewith.'' \11\ 
Additionally, FCRA section 612(f)(2) specifically directs the Bureau to 
annually modify the maximum allowable charge for consumer file 
disclosures based on changes to the Consumer Price Index.\12\
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    \8\ Public Law 111-203, 124 Stat. 2035 (2010).
    \9\ Section 1002(12)(F) of the Dodd-Frank Act designates most of 
the FCRA as an ``enumerated consumer law.'' Public Law 111-203, 124 
Stat. 1957 (2010).
    \10\ Public Law 111-203, 124 Stat. 2086 (2010).
    \11\ Public Law 11-203, section 1088(a)10)(E), 124 Stat. 2090 
(2010) (codified at 15 U.S.C. 1681s(e).
    \12\ 15 U.S.C. 1681j(f)(2).
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    This final rule is effective on January 31, 2019.

IV. Administrative Procedure Act (APA)

    Under the Administrative Procedure Act (APA), notice and 
opportunity for public comment are not required if the Bureau for good 
cause finds that notice and public comment are impracticable, 
unnecessary, or contrary to the public interest. 5 U.S.C. 553(b)(B). 
The annual adjustment to the maximum allowable charge under section 
612(f) of the FCRA is technical, routine, and nondiscretionary: Each 
year, the Bureau takes the $8.00 figure set forth in the statute and 
applies the adjustment formula also set forth in the statute to arrive 
at the maximum allowable charge. The annual adjustment to the maximum 
allowable charge merely codifies the result of the calculation 
prescribed by Congress. The amendments to Regulation V are also 
technical. The new regulatory text and appendix track the FCRA. For 
these reasons, the Bureau has determined that publishing a notice of 
proposed rulemaking and providing opportunity for public comment are 
unnecessary. Therefore, the amendments are adopted in final form.
    Section 553(d) of the APA generally requires publication of a final 
rule not less than 30 days before its effective date, except: (1) A 
substantive rule which grants or recognizes an exemption or relieves a 
restriction; (2) interpretive rules and statements of policy; or (3) as 
otherwise provided by the agency for good cause found and published 
with the rule. 5 U.S.C. 553(d). At a minimum, the Bureau believes the 
amendments fall under the third exception to section 553(d). As 
mentioned above, the annual adjustment and the amendments to Regulation 
V are technical. The amendments codify the language of the FCRA, and 
the annual adjustment merely applies the statutory method for adjusting 
the maximum allowable charge and follows the statutory directive to 
make the annual adjustment each year.

V. Regulatory Flexibility Act (RFA)

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking 
where general notice of proposed rulemaking is not required.\13\ As 
noted previously, the Bureau has determined that it is unnecessary to 
publish a general notice of proposed rulemaking for this rule. 
Accordingly the RFA's requirements relating to an initial and final 
regulatory flexibility analysis do not apply.
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    \13\ 5 U.S.C. 603(a), 604(a).
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VI. Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et 
seq.), Federal agencies are generally required to seek the Office of 
Management and Budget (OMB) approval for information collection 
requirements prior to implementation. According to the PRA, the Bureau 
may not conduct or sponsor, and, notwithstanding any other provision of 
law, a person is not required to respond to an information collection 
unless the information collection displays currently a valid control 
number assigned by OMB. The information requested by Regulation V has 
been previously approved by OMB and assigned OMB control number 3170-
0002. It expires on 08/31/2020. The Bureau has determined that the 
revisions to this Policy do not introduce

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any new or substantively or materially revised collections of 
information beyond what has been previously approved by OMB.

VII. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Bureau will submit a report containing this rule and other required 
information to the United States Senate, the United States House of 
Representatives, and the Comptroller General of the United States prior 
to the rule taking effect. The Office of Information and Regulatory 
Affairs (OIRA) has designated this rule as not a ``major rule'' as 
defined by 5 U.S.C. 804(2).

List of Subjects in 12 CFR Part 1022

    Banks, Banking, Consumer protection, Credit unions, Fair Credit 
Reporting Act, Holding companies, National banks, Privacy, Reporting 
and recordkeeping requirements, Savings associations, State member 
banks.

Authority and Issuance

    For the reasons set forth above, the Bureau amends Regulation V, 12 
CFR part 1022, as set forth below:

PART 1022--FAIR CREDIT REPORTING (REGULATION V)

0
1. The authority citation for part 1022 continues to read as follows:

    Authority: 12 U.S.C. 5512, 5581; 15 U.S.C. 1681a, 1681b, 1681c, 
1681c-1, 1681e, 1681g, 1681i, 1681j, 1681m, 1681s, 1681s-2, 1681s-3, 
and 1681t; Sec. 214, Public Law 108-159, 117 Stat. 1952.

Subpart O--Miscellaneous Duties of Consumer Reporting Agencies

0
2. Section 1022.141 is added to read as follows:


Sec.  1022.141  Reasonable charges for certain disclosures.

    Pursuant to section 612(f) of the FCRA, 15 U.S.C. 1681j(f), the 
charge imposed by a consumer reporting agency for a disclosure to the 
consumer pursuant to section 609 of the FCRA, 15 U.S.C. 1681g, shall 
not exceed the maximum allowable charge set by the Bureau.

0
3. Appendix O is added to read as follows:

Appendix O to Part 1022--Reasonable Charges for Certain Disclosures

    Section 612(f) of the FCRA, 15 U.S.C. 1681j(f), directs the 
Bureau to increase the maximum allowable charge a consumer reporting 
agency may impose for making a disclosure to the consumer pursuant 
to section 609 of the FCRA, 15 U.S.C. 1681g, on January 1 of each 
year, based proportionally on changes in the Consumer Price Index, 
with fractional changes rounded to the nearest fifty cents. The 
Bureau will publish notice of the maximum allowable charge each year 
by amending this appendix. For calendar year 2019, the maximum 
allowable charge is $12.50. For historical purposes:
    1. For calendar year 2012, the maximum allowable disclosure 
charge was $11.50.
    2. For calendar year 2013, the maximum allowable disclosure 
charge was $11.50.
    3. For calendar year 2014, the maximum allowable disclosure 
charge was $11.50.
    4. For calendar year 2015, the maximum allowable disclosure 
charge was $12.00.
    5. For calendar year 2016, the maximum allowable disclosure 
charge was $12.00.
    6. For calendar year 2017, the maximum allowable disclosure 
charge was $12.00.
    7. For calendar year 2018, the maximum allowable disclosure 
charge was $12.00.
    8. For calendar year 2019, the maximum allowable disclosure 
charge is $12.50.

    Dated: December 21, 2018.
Kathleen Kraninger,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2018-28372 Filed 1-29-19; 8:45 am]
BILLING CODE 4810-AM-P