BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.  20551

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

CA 06-10

May 16, 2006

TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS:

SUBJECT: Updated Examination Procedures for the Fair Credit Reporting Act

The FFIEC Task Force on Consumer Compliance recently approved an examination module for the medical information regulation that implements Section 604(g) of the Fair Credit Reporting Act.¹ This rule was incorporated into the Board's Regulations V and FF² which became effective April 1, 2006 (70 Federal Register 70664). Section 604(g) generally prohibits creditors from obtaining and using medical information in connection with any determination of the consumer's eligibility, or continued eligibility, for credit unless permitted by regulation. The medical information regulations create exceptions to the statute's general prohibition.

As noted in CA 05-9, modules will be added to the FCRA examination procedures as regulations implementing FACT Act changes to FCRA are approved and become effective. In an effort to consolidate all FCRA examination guidance in one location, this CA letter incorporates the medical information module into the FCRA examination procedures released in CA 05-9. Accordingly, this letter rescinds CA 05-9. Please note that the examination procedures cover provisions required either by statute (FCRA) or regulation (Regulation V). Thus, examination reports (and data entry into NED) should reflect the appropriate statutory or regulatory cite.

If you have any questions, please contact Timothy Burniston, Manager, Reserve Bank Oversight (202-452-3488), or Beverly Smith, Manager, Applications and Special Projects Section (202-452-5291).

Sincerely,
(signed)

Sandra F. Braunstein
Director

Attachment

Supersedes: CA 05-9 (November 14, 2005)

Notes:

^1.   The Fair and Accurate Credit Transaction Act of 2003 (FACT Act) amended Section 604(g) of FCRA to include requirements for the protection of medical information.  Return to text

^2.   Regulation V's medical information rules generally apply to state member banks, banking holding companies, and other entities regulated by the Federal Reserve System (see 12 CFR 222.30(a)). Regulation FF applies to all creditors except for those covered by the medical information regulations of the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (see 12 CFR 232.1(a)).  Return to text