Economic Growth, Regulatory Relief, and Consumer Protection Act

Have you addressed the new provision in the Economic Growth, Regulatory Relief, and Consumer Protection Act that goes into effect on September 21, 2018?

Consumers have the right to obtain a security freeze

S. 2155 includes a new notice requirement that must be provided to consumers “[a]t any time a consumer is required to receive a summary of rights required under section 609.” Therefore, as of September 21, 2018, this new consumer notice (see below) should be sent whenever the consumer is required to receive a summary of rights under Section 609 (§1681g) of the FCRA (either the federal Summary of Rights notice or the “Remedying the Effects of Identity Theft” notice).

Cisive clients who utilize our onboarding portal with standard forms for delivery of the FCRA Summary of Rights need not do anything further as we are making changes to comply automatically. If you have “customized” forms (logo, words, content, etc.), you will need to review the forms in the system and advise Cisive if you are changing them. For those companies who manage their own pre-adverse/adverse process and deliver the FCRA Summary of Rights on their own, should consult Counsel and prepare to include the below notice when sending their Summary of Rights.

The notice required by the new provision that applies to any circumstance in which the consumer is required to receive a summary of rights under Section 609 is as follows:

You have a right to place a ”security freeze” on your credit report, which will prohibit a consumer reporting agency from releasing information in your credit report without your express authorization. The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gets access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, or any other account involving the extension of credit. As an alternative to a security freeze, you have the right to place an initial or extended fraud alert on your credit file at no cost. An initial fraud alert is a 1-year alert that is placed on a consumer’s credit file. Upon seeing a fraud alert display on a consumer’s credit file, a business is required to take steps to verify the consumer’s identity before extending new credit. If you are a victim of identity theft, you are entitled to an extended fraud alert, which is a fraud alert lasting 7 years. A security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity, with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.

Should there be any question regarding this, please contact your client services representative at Cisive.

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