FEDERAL TRADE COMMISSION - 16 CFR Part 601
AGENCY: Federal Trade Commission.
ACTION: Publication of guidance for prescribed notice
forms.
SUMMARY: The Federal Trade Commission is publishing
three notices that it is required to prescribe under recent amendments to
the Fair Credit Reporting Act (FCRA). These are: A summary of consumer
rights under the FCRA; a notice setting forth the responsibilities under the
FCRA of those who regularly furnish consumer report information to consumer
reporting agencies; and a notice setting forth the duties of any person who
uses information covered by the FCRA. These notices must be distributed by
consumer reporting agencies once the amendments to the FCRA become effective
on September 30, 1997. A consumer reporting agency will be in compliance
with the FCRA if it provides notices substantially similar to those
prescribed by the Commission.
DATES: The amendments become effective September 30,
1997.
ADDRESSES: Federal Trade Commission, Washington, DC
20580.
FOR FURTHER INFORMATION CONTACT: Clarke Brinckerhoff
or William Haynes, Attorneys, Division of Credit Practices, Federal Trade
Commission, Washington, DC 20580, 202-326-3224.
SUPPLEMENTARY INFORMATION:
The Fair Credit Reporting Act (FCRA), originally enacted in
1970,(1)
was extensively amended in 1996. Most of the amendments to the law,
including those discussed in this notice, go into effect on September 30,
1997.
As amended, the FCRA requires each consumer reporting agency
("CRA," usually a credit bureau) to distribute three types of notices in
order to better educate consumers, furnishers and users of consumer report
information as to their rights or duties under the law. Section 609(c) of
the amended FCRA mandates that each CRA provide, as part of its file
disclosure to consumers, a written summary of consumer rights ("summary" or
"consumer summary") under the FCRA. Section 607(d) requires each CRA to
provide a notice to persons who buy consumer information from the CRA of
their responsibilities under the FCRA ("user notice"), and a notice to
persons who regularly furnish consumer information to the CRA of their
responsibilities under the FCRA ("furnisher notice"). The Federal Trade
Commission ("Commission") is required to prescribe the content of the
notices, and, in the case of the consumer summary, the form as well. A CRA
complies with the law if it provides the applicable party with a summary or
notice that is substantially similar to the one prescribed by the
Commission.
On February 28, 1997, the Commission published for comment
proposed versions of the three notices (collectively, "the notices"). The
discussion accompanying the proposed notices outlined in detail the relevant
FCRA sections, and set forth a number of questions designed to facilitate
public comment on the proposals. 62 Fed. Reg. 9123 (1997).
The comment period closed on March 31, 1997. The Commission
received 28 comments from credit bureaus and other CRAs, creditors (and
other parties that make use of consumer reports and/or furnish information
to CRAs), consumers and their representatives, regulatory authorities, and
other interested parties. Although the Commission stated that it was
requesting comments until March 31, 1997, comments received after that date
were taken into account.
This document highlights the principal areas in which the
Commission revised the proposed versions of the notices or decided not to do
so.
The comments overwhelmingly supported the content and
organization of the proposed summary. Many commenters praised the
Commission's effort in offering a proposal that was thorough,
understandable, succinct, and user-friendly. None suggested any major
revision to the overall presentation. Accordingly, the basic framework of
the notice remains unchanged -- a two-page document that starts with an
introductory paragraph explaining the FCRA very generally, features ten
"bullet" sections to describe significant consumer FCRA rights, and includes
the required list of the federal agencies with FCRA enforcement authority at
the end.
A. Principal Revisions Based on Public Comments
1. Additions and deletions. The amended FCRA provides
conflicting guidance as to whether the consumer summary should be brief or
comprehensive. The law mandates a "summary of all the rights the consumer
has under" the FCRA (Section 609(c)(1)(A)). The law also requires "a brief
description of . . . all rights of consumers" provided by that law (Section
609(c)(2)(A)). Arguably, no document that is actually a "summary" -- or that
constitutes a "brief description" of FCRA consumer rights -- could literally
include "all" consumer rights.
The Commission specifically asked for suggestions as to
areas in which the proposed form was too long to be effective as a summary,
or, conversely, had omitted something important to consumers. 62 Fed. Reg.
9123, 9124 (1997). The Commission has deleted three items from the proposed
form that were persuasively cited by commenters as unnecessary or not
helpful to the goal of educating consumers about their FCRA rights:
The sentence noting that a CRA is not required to include a
"risk score" or "credit score" in disclosures to consumers of their credit
histories. The Commission included the sentence in the proposed summary to
try to answer a question that consumers would otherwise ask of CRAs. Upon
review of the diverse comments,(2)
the Commission now believes that the reference would be more hindrance
than help, and accordingly has deleted it.
A discussion of FCRA litigants' ability to obtain attorney's
fees from one another. The comments made it clear that the topic cannot be
covered both briefly and precisely, because of the complexity of this
portion of the amended FCRA.(3)
For that reason, and because the issue is ancillary to the consumer's
right to sue for damages that continues to be emphasized in this portion of
the summary, the Commission decided not to retain the discussion of
attorney's fees.
The reference to a toll-free number in the case of
nationwide CRAs. National CRAs are required to include this number in their
file disclosures; however (as noted by one such CRA), it need not be part of
the summary.(4)
Conversely, other commenters noted that the summary needed
more discussion of the rights of consumers who dispute file data with CRAs.
These rights, which are central to the FCRA and provide important
protections for consumers, are found in Section 611.(5)
Accordingly, the Commission has added a discussion of
(1) the right provided consumers by Section 611(b) to add a
brief statement to their files when they continue to dispute information
that the CRA has investigated and concluded to be accurate, and (2) the
right of consumers under Section 611(d) to have revised reports provided to
all recent recipients of information from their files.(6)
2. Editorial revisions. The Commission's most significant
editorial revisions to the summary are two adjustments in the opening
paragraph to avoid misleading consumers about the range of parties covered
by the FCRA, and to emphasize consumer rights under state law. In the first
case, a major credit bureau asserted that the proposed summary focused on
CRAs to a degree that is unwarranted in view of the fact that the amended
FCRA also imposes substantial duties on users and furnishers of CRA data.
The Commission therefore revised the text to eliminate the unnecessary
reference to FCRA rights "in dealing with CRAs (which must) provide you with
a summary of these rights as listed below"(7)
that preceded the body of the summary. In the second case, state
regulatory authorities asserted that the discussion of state law, which is
specifically required by Section 609(c)(2)(D), should be featured more
prominently. Accordingly, the Commission increased the emphasis by moving
the reference to the opening paragraph. The Commission did not intend the
proposed notice to single out CRAs, or to give short shrift to state law;
these two revisions to the opening paragraph of the prescribed summary
should make that clear.
The Commission also adopted some suggestions for stylistic
or technical changes where the Commission believed the change would make the
summary appreciably more precise or useful for consumers. For example, in
the second sentence of the introductory paragraph, the Commission added an
example of consumer report users (landlords) that a state regulator
recommended as useful and deleted a type of CRA information (where consumers
work and live) that industry representatives cited as a poor example for a
summary. Also, the Commission revised a sentence, formerly in the fourth
(now in the third) bullet, to make it clear that national CRAs are not
required to report erroneous information to one another; rather, furnishers
must report to them any disputed data that they find to be inaccurate or
incomplete, a task made easier by an automated system to be created by
national CRAs.
The Commission also made some minor changes to improve the
technical legal accuracy of the summary. The heading to the fourth bullet
was expanded ("Inaccurate information must be corrected or deleted") to
describe precisely a CRA's options when its investigation shows that
disputed information is not accurate.(8)
Similarly, the statement of consumers' right to sue violators has been
amended to state that furnishers can be sued only "in some cases" because
the amended FCRA limits the situations in which consumers are authorized to
sue directly for damages.(9)
B. Principal Public Comments Not Adopted
Commenters made suggestions for stylistic revisions of the
consumer summary, many of which were adopted because they improved the
clarity or comprehensibility of the summary. However, the Commission could
not make all of these changes without unduly lengthening the document.
Because of the large volume of suggested wording and other
changes contained in more than 170 pages of comments received by the
Commission, it is not feasible to discuss them all in this notice. This
section is intended to identify some of the more significant comments that
are not reflected in the finally-prescribed consumer summary.
1. Form of the summary. The principal credit bureau trade
association expressed the view that the Commission specifications for the
form of the summary were unduly "rigid" in two ways. First, the Commission
proposed that the summary be on paper no smaller that 8 x 11 inches in size.
The commenter noted that continuous feed forms are not always perforated as
8 x 11-inch sheets, and that the requirement that the summary be "on paper"
would inhibit the possibility of electronic disclosures. Second, the
Commission proposed that the notice be in 12-point type (8-point for the
table at the end). The commenter stated that type sizes may vary based on
the font being used.
Section 609(c)(3) of the amended FCRA specifically states
that the "Commission shall prescribe the form and substance of" the summary
(emphasis added). The Commission is required by law to prescribe a format
that ensures that consumers will receive a summary that is readable and
useful, and believes that the format prescribed in the proposal is
appropriate for that purpose. However, the Commission does not intend to
impose an absolutely "rigid" standard, which would be inappropriate under
the statute. Section 609(c)(3) requires only that a summary be
"substantially similar" (i.e., not identical) to the Commission-prescribed
version. Therefore, a format that approximates that published by the
Commission as "Appendix A" (which meets the type size requirements and can
be printed, with comfortable margins, on two 8 x 11-inch pages) will comply,
even if the print is technically not 12-point in size because of a different
font, or it is provided on computer paper that is slightly smaller in size.
Similarly, an electronic submission that normally allows the recipient to
receive it in a format similar to the prescribed version will also comply.(10)
Such summaries will not result in the consumer receiving a form that is
harder to read or use than the exact prescribed version.(11)
2. Items required by Section 609(c)(2). The Commission
received a number of comments relating to each of three sections the amended
FCRA requires be included in the summary: (1) a reference to rights provided
by state law, (2) a statement that the CRAs are not required to delete
accurate data that is not obsolete under Section 605, and (3) a list of
federal agencies that have authority to enforce the FCRA. The Commission
made few additions or deletions in these areas, because Congress has given
precise instructions. This section describes the nature of those comments
and the basis for the Commission's decision in most cases not to change the
proposed form.
State regulators suggested a substantial expansion of the
reference to state law required by Section 609(c)(2)(D), including multiple
references to state and local authorities, and more detailed instructions on
how to reach them. As noted above (I-A-2), the Commission has decided to
feature the statutorily-required section more prominently in the summary.
However, the Commission does not believe the section should be expanded
because it currently uses the language prescribed by Congress.
Several commenters offered revisions of the sentence,
required by Section 609(c)(2)(E), reminding consumers in bold letters that
they cannot require CRAs to remove information that is accurate and not
outdated. The Commission adopted a suggestion by a CRA trade association to
add a parenthetical cross-reference to clarify that "outdated" means the
FCRA's seven year period (ten for bankruptcies), a change that made the bold
statement more precise. It did not adopt suggestions for change that were
not specifically authorized by the statute.(12)
Similarly, the Commission did not adopt suggestions by
commenters to reduce the list of federal agencies with regulatory authority.
Section 609(c)(2)(C) requires that the summary include "a list of all
federal agencies responsible for enforcing [the FCRA] and the address and
any appropriate phone number of each such agency, in a form that will assist
the consumer in selecting the appropriate agency." Suggestions for pruning
this section involved using a narrative to replace the required "list,"
reducing the list from "all" agencies by eliminating those deemed to be of
low interest to consumers, and other revisions that would delete or reduce
the jurisdictional summaries designed to "assist the consumer in selecting
the appropriate agency." The comments appeared well-intended, but the
Commission concluded that the summary should reflect the specific
instructions of Congress on this point.
3. Use of "CRA" as an acronym. A number of commenters from
different sectors asserted that "CRA" is an awkward acronym for "consumer
reporting agency; most of them suggested that "credit bureau" would be more
easily understood. Some opined that "CRA" is too easily confused with a
common acronym for the Community Reinvestment Act.
The term "credit bureau" is certainly known to more
consumers than "CRA," but it has major drawbacks that the Commission
believes make its use inappropriate here. The FCRA unquestionably applies to
all consumer reporting agencies, a universe that includes more than credit
bureaus (e.g., specialized CRAs that report only on mortgage or tenant
applications, or only on consumers' check writing habits). It thus would be
legally inaccurate to use "credit bureau" as a replacement. In addition, it
would make the summary confusing to a consumer who receives it from a CRA
that is not a credit bureau. While some commenters who are knowledgeable
about financial laws may be accustomed to "CRA" as an acronym for the
Community Reinvestment Act, only a small fraction of consumers who get this
summary may make such a connection.(13)
The furnisher and user notices occasioned relatively few
comments, and thus are little changed from the proposed versions. The
Commission, responding to a suggestion by state regulators, added a sentence
to each notice referring to the possible applicability of state law. With
the exception of a few subjects discussed in the following sections on each
of these notices, the only changes were revisions that were very slight
adjustments that the Commission believes, based on the comments, would make
the notice more clearly reflect the FCRA and be of assistance to the
recipients.
The Commission specifically asked whether the public wanted
guidance as to the timing and frequency of notice distribution, in view of
the amended FCRA's silence on the point. 62 Fed. Reg. 9123, 9125 (1997). The
overwhelming majority of the commenters did not address the issue, and those
who commented gave very different views -- a comment from state regulators
advocated requiring frequent notices, two furnishers/users asked for a
ruling limiting or not requiring multiple notices, and a CRA trade
association urged that the marketplace be allowed to work its will in light
of the FCRA's silence. Based on the limited number of (and wide disagreement
among) commenters, formal guidance on these issues at this early stage seems
unwise. If experience after the amendments become effective indicates a need
for such action, the Commission can revisit the issue.
A. Furnisher Notice
The one significant change in the furnisher notice is the
addition of a reference to the fact that two of the sections apply only to
parties that furnish information to CRAs regularly and in the ordinary
course of their business.(14)
The Commission specifically asked for public comment on this issue. 62
Fed. Reg. 9123, 9125 (1997). There was a consensus among the commenters that
the notice should be revised to include reference to the different standards
that apply to occasional users.
Representatives of different furnishers suggested two
additions that the Commission did not adopt. First, credit card issuers
advocated adding a section spelling out the limitations on consumers'
ability to sue furnishers, a topic that seemed inappropriate for a
Commission-prescribed notice of duties to furnishers. Second, debt
collectors and creditors urged that the notice specify that a furnisher's
duty to report an item as "disputed" lasts only while it is investigating
the dispute. This point involves an issue of statutory interpretation that
is more appropriately resolved in another forum.
Finally, the Commission asked for comments on whether the
prescribed form should include the text of Section 623. 62 Fed. Reg. 9123,
9125 (1997). The Commission has not included the text, because the
commenters generally stated that it was unnecessary. However, a CRA form
that does so will be "substantially similar" and thus in compliance with
Section 609(c).
B. User Notice
The Commission asked for comment as to whether it should
prescribe separate notices for different types of specialized users (62 Fed.
Reg. 9125). The overwhelming majority of the commenters stated that a single
notice (as the Commission proposed) was best.
One commenter representing specialized reporting services,
while agreeing that a single notice is appropriate for most CRAs, stated
that its members' business activities are so focused that the information
provided to their clients would never relate to some of the points in the
comprehensive notice. As an example, the commenter asserted that the
portions of the proposed notice concerning employment reports (section II of
the Notice), investigative reports (section III), medical information
(section IV) or prescreened lists (section V) might not be pertinent to
purposes of any clients of a mortgage reporting company. Similarly, it noted
that a different set of sections might not be relevant to the purposes of
any customers of a CRA that provides reports only for employment or tenant
screening uses. The Commission agrees that a CRA may delete sections of the
notice that are irrelevant to the business purposes for which any user is
contractually authorized to purchase consumer reports from the CRA, in the
same fashion that a creditor may omit inapplicable sections of prescribed
forms under other statutes.(15)
The only significant addition to the user notice is in
Section I-B of the notice, concerning the certification of permissible
purpose that users must provide to CRAs that sell consumer reports to them.
Several parties advocated that the Commission expand this Section to account
for the possibility of a general certification, as permitted by Section
604(f). The Commission has done so, but added the words "as appropriate" to
make it clear that some consumer report users whose activities involve both
permissible and impermissible purposes,(16)
or who have given the CRA reason to believe they have violated a general
certification, must be required to provide individual certifications for
each consumer report.
In publishing the proposed notices, the Commission stated
that the notices would not have a significant economic impact on a
substantial number of small entities. The Commission explained that it is
prescribing the notices at the direction of Congress, so that any economic
costs imposed on small entities by the required dissemination of the notices
are in fact imposed by statute. The Commission noted further that its
publication of forms for the proposed notices could be said to lessen the
burden on small businesses, since the entities can -- but need not -- adopt
the Commission's forms, and thereby avoid the risk and expense of developing
their notices independently. The Commission nevertheless requested comments
in order to ensure that it did not overlook any substantial economic impact
on small businesses.
The Commission received four comments addressing the
question of the notices' economic impact on small businesses. Two commenters
agreed that the Commission's publication of the notices would not have a
significant economic impact on a substantial number of small businesses. One
commenter disagreed, but provided data supporting the conclusion that the
statutory requirement would create a significant economic impact, rather
than any evidence that the Commission's publication of the model forms for
the notices would do so. Finally, one commenter stated that small businesses
would be significantly burdened if the Commission were to require repeated
distribution of the notices. As stated in the second paragraph of Section II
above, the Commission has determined not to impose any requirements
concerning the timing and frequency of dissemination of the notices at this
time. Accordingly, the Commission has determined that public comments and
information before the Commission do not alter the conclusion that its
publication in final form of the models for the prescribed notices will not
have a significant economic impact on a substantial number of small
entities.
In its initial review of the proposed notices, the
Commission considered whether it was "sponsoring or conducting" any
"collection[s] of information" that would trigger the provisions of the
Paperwork Reduction Act, 44 USC Chapter 35. In this regard, the Commission
observed that the notices contain only statutorily imposed investigation,
disclosure, and recordkeeping requirements; the FTC introduces no additional
elements. Further, two of the notices will become effective on September 30,
1997, regardless of whether the FTC has provided the language for these
forms by that time. In this situation, the Commission does not "require" or
"cause" the disclosures to occur.
The Commission also observed that the three notices contain
all the information that subject firms will be required to disclose to third
parties. The reporting agencies can simply adopt these notices for
distribution without any change to the language. Therefore, the three
notices fall within an exception to the definition of a "collection of
information" as being "[t]he public disclosure of information originally
supplied by the Federal government to the recipient for the purpose of
disclosure to the public.") 5 C.F.R. 1320.3(c)(2). Accordingly, none of the
three require approval by OMB. Nonetheless, the Commission requested public
comment on this matter. No comments were received.
Credit, Trade practices.
Pursuant to 15 USC 1681g and 1681s, the FTC hereby adds to
Subchapter F of Chapter I of 16 CFR a new Part 601 to read as follows:
PART 601 -- SUMMARY OF CONSUMER RIGHTS, NOTICE OF USER RESPONSIBILITIES,
AND NOTICE OF FURNISHER RESPONSIBILITIES UNDER THE FAIR CREDIT REPORTING ACT
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601.1 Authority and purpose.
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601.2 Legal effect.
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Appendix A to Part 601 - Prescribed Summary of Consumer
Rights
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Appendix B to Part 601 - Prescribed Notice of Furnisher
Responsibilities
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Appendix C to Part 601 - Prescribed Notice of User
Responsibilities
Authority: 15 USC
1681g and
1681s.
601.1 Authority and purpose.
(a) Authority. This part is issued by the Commission
pursuant to the provisions of the Fair Credit Reporting Act (15 USC 1681 et
seq.), as most recently amended by the Consumer Credit Reporting Reform Act
of 1996 (Title II, Subtitle D, Chapter 1, of the Omnibus Consolidated
Appropriations Act for Fiscal Year 1997), Public Law 104-208, 110 Stat.
3009-426 (Sept. 30, 1996).
(b) Purpose. The purpose of this part is to comply with
sections 607(c) and 609(c) of the Fair Credit Reporting Act, as amended.
Section 609(c)(3) directs the FTC to prescribe the form and content of a
summary of consumers' legal rights under the FCRA that the amended law
requires each consumer reporting agency to provide when disclosing the
information in its file to consumers, and section 609(c)(4) provides that
the summary need not be provided until the FTC has in fact prescribed its
form and content. Section 607(d)(2) directs the FTC to prescribe the content
of notices that consumer reporting agencies are required to provide to
parties that supply information to, or purchase consumer reports from, the
agency. These notices will set forth the responsibilities under the FCRA of
all persons who furnish information to consumer reporting agencies or use
information subject to the FCRA.
601.2 Legal effect.
The forms prescribed by the FTC do not constitute a trade
regulation rule. They carry out the directive in the statute that the FTC
prescribe the summary and notices. A consumer reporting agency that provides
notices substantially similar to those prescribed by the FTC will be in
compliance with Section 607(d) or 609(c) of the FCRA, as applicable.
Appendix A to Part 601 -
Prescribed Summary of Consumer Rights
Appendix B to Part 601 -
Prescribed Notice of Furnisher Responsibilities
Appendix C to Part 601 -
Prescribed Notice of User Responsibilities
By direction of the Commission.
Donald S. Clark,
Secretary.
1. 15 USC Sections 1681-1681u; Title VI of
the Consumer Credit Protection Act.
2. This sentence in the second bullet ("You
can find out what is in your file") was based on a clause specifically added
to Section 609(a)(1). One comment from major creditors stated that the
reference should be expanded to refer to "any information concerning" such
scores "or other predictors." A more frequent view, offered by a major CRA,
a trade association, and a federal regulatory agency stated that the section
was unnecessary and would confuse rather than educate consumers.
3. This sentence, which appeared in the
last bullet ("You may seek damages from violators"), was an effort to
synthesize the various applicable provisions of Sections 616-617, as
amended. The Commission's decision to delete this reference follows the
recommendation of two commenters from disparate points of view -- a
nationwide credit bureau and a nationwide consumer advocacy organization.
Other comments suggested expanding it further to make it more precise.
4. This appeared in the proposed notice
after the tenth and last bullet, before the list of federal agencies.
5. Because of space limitations, the
proposed notice focused on the rights provided for the first time by the
amended section 611(a): the 30-day period for CRA investigations; the CRA
obligation to consider (and pass on to the furnisher of the item) "all
relevant information" submitted by the consumer when a dispute occurs; the
consumer's right to a written statement of results of an investigation; and
limits on the ability of CRAs to re-insert an item of information deleted
pursuant to a consumer dispute.
6. These items are now included in the
third bullet of the prescribed notice ("You can dispute inaccurate
information with the CRA"). The sentence dealing with limits on CRA ability
to re-insert information after it had been deleted, previously located
there, now appears in the fourth bullet ("Inaccurate information must be
corrected or deleted").
7. Partially in response to the same
comment, the Commission also revised the tenth and last bullet to refer to
the liability of users and furnishers (as well as CRAs) in civil actions.
8. Both industry and consumer
representatives asserted that the summary should clearly inform consumers
that a CRA may cure an inaccuracy with respect to a disputed item of
information by either deleting the information or amending it to make it
accurate.
9. Section 623(c) of the amended FCRA
specifically bars consumers from bringing suit against furnishers of
information for violation of the accuracy and reporting duties imposed by
Section 623(a), allowing only regulatory authorities to enforce those
provisions.
10. Section 610(a)(2) provides that file
disclosures are normally to be made in writing. However, Section 610(b)(2)
allows the consumer to specify disclosure by other means, including
electronic means if available from the CRA.
11. In some cases, a CRA may use an
entirely different format to respond to a consumer request under Section
610(b)(2), or to accommodate visually (or otherwise) impaired consumers
pursuant to relevant federal or local laws.
12. One CRA accurately pointed out that it
is not technically correct to imply that a CRA must "remove" outdated
accurate information from its files, because such data may be retained to be
reported in situations listed in Section 605(b) where the obsolescence
provisions do not apply. However, it is common practice for credit bureaus
to delete information from their files before the time periods set forth in
Section 605; thus, it makes sense that Section 609(c)(2)(E) should direct
that a summary, as opposed to a legal brief, include a statement concerning
limits on the CRA's duty to "remove" outdated data.
13. Of course, a credit bureau may elect
to replace "CRA" with "agency" or some other appropriate term in the notice
it provides to any party, because it would be "substantially similar" to the
Commission's form under Section 609(c)(3).
14. Sections 623(a)(2) and (a)(4) provide
that the obligations described in the notice as "Duty to Correct and Update
Information" and "Duty to Report Voluntary Closing of Credit Accounts" apply
only to such parties.
15. Creditors are required to notify
consumers of their rights under the Fair Credit Billing Act, Regulation Z
226.6(d), 12 C.F.R. 226.6(d). The Federal Reserve Board has prescribed forms
for that purpose. Regulation Z, Appendix G, Forms G-3 and G-4. However,
creditors that do not issue credit cards may omit a section in the form on
the rights of cardholders, and creditors that are not able to debit a
savings or checking account for payment may omit a section about the
consumer's right to stop such debits. Official Staff Commentary for
Regulation Z, Appendix G-3, 12 C.F.R. Part 226, Supp. 1.
16. Certain businesses typically have both
permissible and impermissible purposes -- e.g., an attorney could obtain a
consumer report to decide whether to hire a job applicant or to extend
credit to a client, but not to decide whether to name a person as a
defendant in a tort action.
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