June 22, 2009
New Rules for Information Your Bank Furnishes to Credit Reporting Agencies
The Federal Banking Agencies (OCC, FDIC, OTS, FRB, NCUA) and the Federal Trade Commission will publish in the Federal Register Joint Final Rules concerning the accuracy and integrity of consumer financial information banks and other businesses furnish to credit reporting agencies. At the same time, the agencies will publish questions for possible future additions to the regulations. All financial institutions should consider submitting comments in response.
In 2003, Congress passed the Fair and Accurate Transactions Act ("FACTA" or the "FACT Act"). The new Final Regulations address the accuracy and integrity of information in consumer reports
The new FACTA rules also set up a framework for the consumer to communicate directly with the business that provided the information rather than having to go through the credit reporting agency to investigate and correct errors in a consumer's credit report.
Compliance Officer Alert: Banks must adopt policies and procedures required by these new regulations. The regs allow flexibility for the scope, size and complexity of the financial institution or business.
Link: http://www.occ.treas.gov/ftp/release/2009-64.htm
(ag) June 22, in Credit Rating Agencies
June 22, 2009 in Credit Rating Agencies | Permalink | Comments (0) | TrackBack
October 02, 2006
Credit Rating Agency Bill Signed by President
With enactment of the Credit Rating Agency Bill, the SEC will assume oversight for NRSROs ("Nationally Recognized Statistical Ratings Organizations"). The bill is also touted as breaking the credit rating "duopoly" previously held by Moody's and Standard & Poor's, with new registration procedures opening participation in this industry to over 130 ratings firms. Incentive to pass this legislation came from "mistakes S&P and Moody's made by telling investors that Enron and WorldCom were safe investments just days before they filed for bankrupty."
Link to U.S. House of Representatives Committee on Financial Services Sept. 29, 2006, Press Release: http://financialservices.house.gov/News.asp?FormMode=release&ID=876
(ag) Oct. 2, 2006, in Credit Rating Agencies/Congress
October 2, 2006 in Congress, Credit Rating Agencies | Permalink | Comments (0) | TrackBack
