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CThe Federal Trade Commission is seeking
public comment on different approaches to determining a
“fair and reasonable” fee for credit scores under the Fair
and Accurate Credit Transactions Act (FACTA) and the Fair
Credit Reporting Act (FCRA). FACTA, which was enacted on
December 4, 2003, amends the FCRA and requires, among
other things, that nationwide consumer reporting agencies
(CRAs) provide to consumers, upon request, a copy of their
credit scores.
A credit score is a numeric characterization of a
consumer’s credit history, which creditors may use to
predict the level of risk associated with providing credit
to the consumer. Generally, a higher score indicates lower
predicted risk. Consumers can purchase their credit score
from the three nationwide credit bureaus or other
companies not covered under FACTA. The cost for credit
scores currently appears to be between $4 and $8. FACTA
directs the Commission to develop a “fair and reasonable”
fee for credit bureaus to charge consumers for a copy of
their credit score beginning
December 1, 2004.
In a Federal Register notice published today, the
Commission presents several approaches for determining a
reasonable fee for score disclosure. The Commission seeks
comments on these approaches and on the various factors
and methods that should be considered in determining the
appropriate fee. The Commission also seeks comment on: (1)
the state of the current market in direct-to-consumer
scores; (2) the percentage of the credit score market that
would be regulated, and what percentage unregulated, under
the FCRA; (3) the competitive effects of the imposition of
a maximum price requirement that applies only to part of
the market for credit scores; (4) whether consumer
reporting agencies will choose to fulfill their obligation
under the FCRA directly or through subsidiaries; (5) the
appropriate market to consider if the Commission chooses
to determine a fee based on the market for scores; (6)
whether factors other than price should be considered in
determining a fee based on the market for scores; and (7)
should the Commission choose a specific dollar amount,
whether it should include a mechanism for periodic
adjustment of the price, and if so, what factors should
determine the need for an adjustment.
Written comments should refer to “FACTA Credit Score Fee,
Project No. R411004” both in the text and on the envelope,
and should be mailed to the following address: Federal
Trade Commission/Office of the Secretary, Room H-159
(Annex O), 600 Pennsylvania Avenue, N.W., Washington, DC
20580. Comments containing confidential material must be
filed in paper form. The FTC is requesting that any
comment filed in paper form be sent by courier or
overnight service, if possible, because U.S. postal mail
in the Washington area and at the Commission is subject to
delay due to heightened security precautions. Comments
also may be filed electronically at:
https://secure.commentworks.com/ftc-CreditScoreFee.
The Commission vote approving publication of the Federal
Register Notice was 5-0.
Copies of the Federal Register notice are available from
the FTC’s Web site at
http://www.ftc.gov and also from the FTC’s Consumer
Response Center, Room 130, 600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580. The FTC works for the consumer to
prevent fraudulent, deceptive, and unfair business
practices in the marketplace and to provide information to
help consumers spot, stop, and avoid them. To file a
complaint in English or Spanish (bilingual counselors are
available to take complaints), or to get free information
on any of 150 consumer topics, call toll-free,
1-877-FTC-HELP (1-877-382-4357), or use the complaint form
at http://www.ftc.gov.
The FTC enters Internet, telemarketing, identity theft,
and other fraud-related complaints into Consumer Sentinel,
a secure, online database available to hundreds of civil
and criminal law enforcement agencies in the U.S. and
abroad.
MEDIA CONTACT:
Jen Schwartzman
Office of Public Affairs
202-326-2674
STAFF CONTACT:
Christopher Keller
Division of Financial Practices
202-326-3224
(FTC File No. R411004)
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About the ICFE:
About the
ICFE:
The Institute of Consumer Financial Education (ICFE), founded in 1982 by the
late Loren Dunton (creator of the “certified financial planner” (CFP)
designation) and it is dedicated to helping consumers of all ages to improve
their spending, increase savings and use credit more wisely. The ICFE trains and
certifies Personal Finance Instructors for its own curriculum. It also trains
and certifies Credit Report Reviewers and Identity Theft Prevention Specialists.
The ICFE is an award winning, nonprofit, consumer education organization that
has helped millions of people through its education programs and resources. It
publishes the Do-It-Yourself Credit File correction Guide, now in its 16th
printing and has distributed over one million “Credit/Debit Card Warning Labels”
and “Credit/Debit Card Sleeves” world wide.
The ICFE became an official partner with the Department of Defense/Financial
Readiness Campaign in June of 2004.
The ICFE is also a partner in the national Jump$tart Coalition for Financial
Literacy and the California Jump$tart chapter. The ICFE staff is also active
with San Diego Saves, an offshoot of America Saves, and the California Student
Debt Resource Awareness Project (CASDRAP) (studentdebthelp.org).
The ICFE’s on-line help for consumers who spend too much was featured in PARADE
Magazine in the Intelligence Report section. The money helps and tips are from
“The Money Instruction Book,” a course in personal finance, positioned to become
among the premier programs in the new bankruptcy and debtor education
initiatives.
The ICFE Web site at:
http://www.icfe.info helps consumers with mending spending, learning about
the proper use of credit, budget and expense guidelines, how to set up and
implement a spending-plan and also how to access financial education courses and
videos and how to teach children about money. Other ICFE services include a free
eNewsletter, and an online resource center of financial education learning
tools, including videos, books, software and personal finance courses.
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