Rely on the Fair Credit Reporting Act experts

Interpreting the Fair Credit Reporting Act ("FCRA") is one area where financial institutions and others have come to rely on Schwartz & Ballen for legal guidance. The Fair Credit Reporting Act, which establishes requirements for companies that use consumer credit reports or provide information to consumer reporting agencies, is of great importance to those involved in modern financial services.

The Schwartz & Ballen web site provides original and continually updated information on the Fair Credit Reporting Act.

The Fair Credit Reporting Act regulates the use of information for consumer credit, insurance and employment purposes. The Fair Credit Reporting Act requires users of consumer credit reviews to keep the information they receive confidential, and to use it only for appropriate purposes in connection with transactions relating to consumer credit, insurance and employment. When adverse actions are taken, companies are required to notify consumers if such action is based upon information contained in the consumer's credit reviews and provide the consumer with certain information regarding the consumer's right to obtain that information from the related agency.

Due to the FCRA, a company that discloses certain information about consumers to others may become a consumer reporting agency if it does not comply strictly with the disclosure limitations. However, companies are permitted to share with others certain types of information, such as transaction and experience information, without becoming subject to the requirements of the FCRA. In addition, companies are permitted to share all types of information with affiliates if they comply with certain additional requirements. Failure to comply with the provisions of the FCRA will subject the company to civil liability and penalties.

Congress has enacted the FACT legislation, which extends certain provisions of the FCRA that expired on January 1, 2004. The legislation addresses areas such as identity theft, sharing of medical information and accuracy of consumer information supplied by companies to the involved agencies. The changes will have a significant effect on companies and will require users of consumer credit reviews, such as insurance companies, banks, and others, to analyze their current procedures for obtaining, using and disclosing consumer information and to implement necessary changes to their procedures in view of the statutory changes Congress made to the FCRA.

The Schwartz & Ballen web site provides the text of the FACT legislation as well as regulations proposed and adopted by the federal agencies. The site also provides analyses of the requirements imposed on financial institutions by the regulations that are adopted by federal agencies.

The Schwartz & Ballen web site provides succinct analyses of laws and regulations that affect financial institutions (banks, thrifts, bank holding companies, savings and loan associations) in addition to providing the text of significant new laws and regulations. While major emphasis is placed on federal laws and regulation, significant state actions are also covered as are important court cases. The analyses are grouped by areas of expertise - privacy, money laundering, Federal Reserve Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Office of Thrift Supervision, Federal Financial Institutions Examination Council, Federal Trade Commission and the Securities and Exchange Commission.

Partner Gilbert Schwartz has played a leading role in advising clients on how to implement and comply with the FCRA.

He also understands the circumstances under which companies may request and use consumer information as well as share that information with affiliated and unaffiliated companies. His expertise involves legal issues related to consumer issues in the financial services industry, including the area of privacy.