Fair and Equal Credit and Lending Laws

The three nationwide CRAs are

-equifax -experian -transunion

All of the following are included in an ECOA adverse action notice

-names and address of the federal agency administering the loan originator's compliance with ECOA - a statement of the action taken -the ECOA notice

also included in the implementation of FACTA, the FTC and the federal financial institution regulatory agencies have published the

Red Flags Rule

under HDMA a dwelling is

any residential structure whether or not attahed to real property

redlining

districts of neighborhood

if such a consumer asks not to be contacted, the company must enter him on their

own do not call list of such consumers

Consumers have the right to

"opt- out" and block solicitations from affiliates of companies with whom they do business

In an individual lawsuit, a violator of the Equal Credit Opportunity Act is subject to punitive damages of up to

$10,000. ECOA can be enforced through administrative action by the agency regulating the creditor or through a civil lawsuit. A violator is subject to actual damages; reasonable attorneys' fees and costs of the plaintiff; and punitive damages of up to $10,000 in an individual lawsuit, or the lesser of $500,000 or 1 percent of the violator's net worth in a class-action lawsuit.

adverse action is defined in the law as any of the following

-a denial or revocation of credit -a change in the terms of an existing credit arrangement -a refusal to grant credit in substantially the amount or on substantially the terms requested

protected classes

-race -color/ethnicity -religion -national orientation (birth place) -sex -marital status -age -public assistance

the HDMA dwelling includes

-vacation or second homes and rental property -multifamily residential structures or communities -individual conod and cooperative units -manufactured homes or other factory-built homes (eg mobile homes)

The Equal Credit Opportunity Act requires that a creditor retain a loan application form for how many months?

25 months

Federal Trade Commission links to laws

http://www.ftc.gov/os/statutes/fcrajump.shtm

Once a person registers his phone number on the federal Do-Not-Call list, how long will it remain there?

until he removes it or phone service is discontinued

in describing the reasons given for an adverse action must be specific

use their blah blah blah

Under Dodd-Frank, the CFPB is given enforcement authority

ver Sections 502 through 509 of the GLBA, with the exception of Section 505 as it applies to Section 501(b). These provisions are codified under 15 USC §6802-6809 and have to do with the disclosure of nonpublic personal financial information. The transfer to the CFPB of the enforcement and rulemaking authority over these privacy provisions in the GLBA occurred on July 21, 2011. (Dodd-Frank Act, Title 10, Section 1002(12)(F), (14); Sections 1062, 1088)

the FCRA was enforced by the FTC until July 21, 2011 when

when the CFPB took over its enforcement and associated rulemaking authority. (Dodd-Frank Act, Title 10, Section 1002(12)(F), (14); Sections 1062, 1088)

A person that takes adverse action because of information obtained from:

- a person other than a CRA relating to the consumer's credit character etc at the time of communicating the adverse action must disclose to the consumer his rights to request a disclosure of the nature of the information - an affiliate must notify the consumer of the action and include a disclosure of the consumer's right to request, within 60 days of the disclosure, the nature of the info upon which the action is based. The person must then disclose the nature of the information within 30 days after receipt of the request

A financial institution must notify a consumer if

- it grants him credit at less favorable terms than those received by most other consumers; or -it will report or does report any negative information to the credit bureaus *** this notification requirement makes it easier for the consumer to learn about and remove fraudulent info from his credit report

the following are examples of an unreasonable expectation of receipt of actual notice

- only posting a sign in a branch or office or on a website, or generally publishing advertisements of privacy policies and practices -sending the notice via electronic mial to a consumer who does not obtaina financial product or service electronically -providing a required notice solely by orally explaining it, either in person or over the telephone

for each transaction, the lender must report on its HDMA loan application record (HMDA LAR) the following data

-The loan (or application), such as the type and amount of the loan made (or applied for) and, in limited circumstances, its price -The disposition of the application (i.e., denial or approval) -The type (single family vs. multifamily) and location (including the census tract) of property to which the loan relates -The applicant's ethnicity, race, sex and annual income

For 25 months (12 months for business credit) after notifying an applicant of action taken on an application or of incompleteness, a lender or mortgage broker must retain the following:

-The original application or a copy of it -Information obtained to monitor compliance -Any other written or recorded information used in evaluating the application and not returned to the applicant at his request -Any notification of action taken or statement of specific reasons for adverse action -Any written statement from the applicant alleging a violation of ECOA

All of the following are mortgage loans subject to coverage under the Home Mortgage Disclosure Act

-a loan to purchase a condo unit -a loan to purchase a mobile home or miltifamily dwelling -a home improvement loan made for the purpose of repairing, rehabilitating, or remodeling a dwelling

For data collected in or after 2018, the lender will be required to report addition categories including

-applicant or borrower age and credit score -automated underwriting system info -unique loan identifier and loan originator ID -property value -points and fees, borrower-paid origination charges, discount points and lender credits -loan term, prepayment penalty, nonamortizing loan features and interest

A financial institution must have a written information security program that is appropriate to its size and complexity, to the nature and scope of its activities, and to the sensitivity of the customer information it handles. As part of its program, the financial institution must:

-assign one or more employees to oversee the program -conduct a risk assessment -put safeguards in palce to control the risk identified in the assesment and regulatory test and monitor them -require service providers, by written contract, to protect customers' personal information -periodically update its security program

under the disclosure rule, businesses are required to take reasonable and appropriate measures to dispose of sensitive information derived from consumer reports and records to protect against "unauthorized access to or use of the information." Such measures might include:

-burning, pulverizing, or shredding paper containing the info -destroying or erasing electronic files or media containing the information -conducting due diligence prior to hiring a document-destruction contractor to dispose the information

In the decision to extend credit:

-consideration cannot be gicen to the race of people in the neighborhood where the applicant wants to buy, refi, or improve with borrower money -income of an applicant or spouse cannot be discounted to excluded from consideration because of a prohibited basis or because it is derived from part-time employment or is an annuity, pension, or other retirement benefits. However, the amount and probable contiuance of income can be considered in evaluating an applicants creditworthiness

the LO is not required to

-explain the information in relation to the credit score -disclose any info other that a credit score or key factors -disclose any credit score or related information obtained by the user after a loan has closed -provide more than one disclosure per loan transaction -provide the disclosure when another person has made the disclosure to the consumer for a particular transaction

Publicly available information includes

-federal, state or local government records made available to the public, such as the fact that an individual has a mortgage with a particular financial institution. -information in widely distributed media such as telephone books, newspapers and websites available to the general public on an unrestricted basis, even if the site requires a password or fee for access.

For customers only, the financial institution must provide the required initial notice, annual notice, and any revised notice so that the customer can retain them or obtain them later in writing or, if the customer agrees, electronically. A privacy notice has been provided so the customer can retain it or obtain it later when it is:

-hand delivered to a customer -mailed to the last known address of the customer -avaialbe ona website (or a link to another website) for a customer who agrees to receive the notice at the webisted

the following types of mortgage loans are subject to the provision of HMDA

-home purchase loans for any residential dwelling -home improvement loans made for the purchase of repairing, rehabilitating, or remoldeling dwelling -refinancing for a home previously covered by HMDA

the red flag rule requires financial institutions (including mortgage lenders) and creditors that hold any consumer account, or other account for which there is a reasonably foreseeable risk of identity theft, to develop and implement an Identity Theft Prevention Program (the Program) that will:

-identify patterns, practices, and specific forms of activity that are "red flags" signaling possible identity theft -detect and respond appropriately to red flags in order to prevent and mitigate identity theft -be updated periodically to reflect changes is risk from identity theft

A CRA can report negative information up to 7 years, subject to the following exceptions:

-information about a lawsuit or an unpaid judgmen against the consumer can be reported for seven years until the statute of limitations runs out, whichever is longer -bankruptcy info may be reported for 10 years -there is no time limit on reporting information: 1. about criminal convictions; 2. in response to an application for a job with a salary of more than $75,000 3. in response to an application for more than $150,0000 worth of credit or life insurance

appropriate responses to red flags include

-monitoring a covered account for evidence of identity theft -contacting the customer -changing any passwords, security codes or other security devices that permit access to a covered account -reopening an existing account with a new account number, clsoing an existing account or not opening a new account -not attempting to collect a covered account or not selling a covered account to a debt collector -notifying law enforcement -determining that no response is warranted under the particular circumstances

A creditor cannot discriminate against an applicant in any aspect of a credit transaction:

-on the basis of race, color, religion, national origin, sex, marital status or age (provided he is of age to enter into a contract). -because all or part of his income derives from a public assistance program. (This income must be considered the same as other income.) -because he has in good faith exercised any right under the Consumer Credit Protection Act. ***These factors cannot be the basis for discouraging persons from applying for credit or be considered in the decision to extend credit.

A creditor is required to provide an applicant with a copy of all appraisals and other written valuations (i.e., any estimate of the value of a dwelling) developed in connection with an application for credit that is to be secured by a first lien on a dwelling. A copy of each appraisal or other written valuation must be provided the earlier of:

-promptly upon completion; or -three business days prior to: 1. consummation of the transaction for closed-end credit; or 2. account opening for open-end credit. ***The copies may be provided in electronic form so long as it is done in compliance with the Electronic Signatures in Global and National Commerce Act (E-SIGN Act) (15 USC §7001 et seq.).

an established business relationship means a relationship between the conmpany and a consumer based on the consumer's

-purchase, rental or lease of the seller's goods or services or a financial transation between the consumer and seller within the 18 months immediately preceding the date of a telemarketing call; or -inquiry or application regarding an offered product or services, within the three months immediately preceding the date of a telemarketing call

HDMA excludes

-recreational vehicles such as travel trailers, boats and campers; and -transitory residences such as hotels, hospitals and college dormitories.

ECOA applies to any creditor, which includes any person who

-regularly extends, renews, or continues credit (e.g., mortgage banker, bank, credit union, small loan and finance company, retail store, credit card company). -regularly arranges for a credit extension, renewal or continuation (e.g., real estate broker, mortgage broker or loan originator who arranges financing). - as an assignee of an original creditor, participates in the decission to extend, renew or continue credit

The purpose of the Fair Credit Reporting Act (FCRA) and Regulation V is to:

-regulate agencies that provide consumer reports -ensure the fairness accuracy, timeliness and privacy of the information used in a consumer report; employment purposes; or any other purpose authorized under 15 USC §1681b. -impose disclosure requirements on persons who use consumer reports

The Fair Credit Reporting Act provides all of the following courses of action for an identity theft victim who has filed a valid police report

-requesting changes in the information on the credit report -applying for a fraud alert - requesting deletion of challenged items from credit report

the written or electronic notice of adverse action must contain:

-the actual numerical credit score -the range of credit scores possible under the model used -all key factors that adversely affected the credit score including 1. the top 4 and 2. a fifth key factor when the number of inquiries plays a negative part i the score calculation -the date of the credit score and -the name of the entity that created the score or the credit file upon which the score was based

Applicants do not have to supply the information about ethnicity, race or sex. They must be informed that:

-the info is being requested by the federal government for the purpose of monitoring compliance with the federal statutes that prohibit discrimination -the lender cant discriminate based on this info or their refusal to provide it -if they coose to not provide the info, in a face to face application the mortgage LO will note the race, ethnicity, and sex on the basis of visual observation

Mortgage and consumer finance companies may have to report HMDA data, depending on:

-their asset size (e.g., banks, savings associations and credit unions with assets at or below $44 million as of December 31, 2015, are exempt from the data collection requirement for 2016). - whether they ahve an office in a metropolitan statistical area -the extent of their housing-related lending activity

the risk based pricing notice must be provided

-to each consumer in a transaction involving more than 1 consumer -no earlier than when the approval is communicated to the consumer and 1. for closed-end credit, before loan consummation; and 2. for open-end credit before the first transaction

the creditor origniation a loan must provide a a consumer with a risk based pricing notice if the creditor

-uses a consumer report in connection with an extension of credit for personal, family, or household purposes; and -based on the report, extends credit to the consumer or material terms (e.g., the annual percentage rate) that are less favorable than the most favorable terms available to a substantial proportion of consumers.

an applicant has the right to receive

-within 30 days of the creditors receipt of an incomplete application, notice of incompleteness with a reasonable time to respond -within 30 days after receipt of a completed credit application, notice of action taken (i.e., acceptance or adverse action).

Under the rules for the Do-Not-Call Registry, a mortgage broker may make an unsolicited call to a potential customer whose name is on the Registry for up to how many months after that person made an inquiry or submitted an application?

3

The Equal Credit Opportunity Act requires that an applicant be informed about action taken on his completed loan application within how many days of its filing?

30

A lender must report a spread (difference) between the

APR on a loan and the average prime offer rate for comparable transactions and must report a loan exceeding the price triggers of the Home Ownership and Equity Protection Act (HOEPA).

The federal agency that oversees the federal Do-Not-Call Registry is

Federal Trade Commission

a note on HDMA

Note Beginning January 1, 2018, covered loans under the HMDA Rule generally will include closed-end mortgage loans and open-end lines of credit secured by a dwelling. Dwelling-secured business-purpose loans and lines of credit will be covered only if they are home purchase loans, home improvement loans, or refinancings. Covered loans and lines of credit will not include agricultural-purpose transactions or other specifically excluded transactions, even if they are dwelling-secured. Home improvement loans will only be covered loans if they are secured by a dwelling. (http://files.consumerfinance.gov/f/201510_cfpb_hmda-executive-summary.pdf)

The Federal reservce boards of govenors administered ECOA and issued

Regulation B to implement its provisions and other federal banking agencies. The Federal Trade Commission (FTC) enforced the law until July 21, 2011, when the Consumer Financial Protection Bureau (CFPB) assumed the enforcement and rulemaking authority over ECOA. (Dodd-Frank Act, Title 10, Section 1002(12)(D), (14); Sections 1062, 1085)

Withdrawn, Denied, or Incomplete Applications

The requirement to provide an appraisal or other written valuation must be met whether credit is extended or denied, or if the application is incomplete or withdrawn.

a consumer who requests a copy of his credit report will receive

a consumre version that shows promotional inquiries and account management inquiries which are omitted from a business version. These inquiries are not counted as official inquiries

In an effort to protect the privacy of consumer information and reduce the risk of fraud and identity theft, in the implementation of FACTA, the FTC has created and enforces

a disclosure rule

In order to protect the privacy of consumer information, the Gramm-Leach-Bliley Financial Modernization Act of 1999 (GLBA) and Regulation P implementing it require

a financial institution to give consumers privacy notices that explain its information-sharing practices. In turn, consumers have the right to limit some, but not all, sharing of their information. GLBA applies to financial institutions (i.e., companies that offer to individuals financial products or services, such as loans, financial or investment advice, or insurance).

once registered with the do not call,

a phone number remains on the list until it is removed or service is discontinued. The FTC Telemarketing Sales Rules as they relate to the Do-Not-Call Registry are administered jointly by the FTC and the Federal Communications Commission (FCC).

For all home purchase loans and applications, lenders must report whether

a preapproval was requested and, if so, report denials of such preapproval requests. A request for preapproval is an application for a home purchase loan in which the lender, after an analysis of the applicant's creditworthiness, may issue a written commitment to make a home purchase loan up to a specified amount, subject to the home's appraisal.

A creditor cannot charge an applicant for providing a copy of appraisals and other written valuations as required but may require applicants to pay

a reasonable fee to reimburse the creditor for the cost of the appraisal or other written valuation. ***lender has to pay if a second appraisal is needed

The Disposal Rule, a part of the Fair and Accurate Credit Transactions Act, is intended to prevent

acts of fraud such as identity theft

ECOA can be enforced through

administrative action by the agency regulating the creditor or through a civil lawsuit filed within five years of when the alleged violation occurred. A violator is subject to actual damages; reasonable attorneys' fees and costs of the plaintiff; and punitive damages of up to $10,000 in an individual lawsuit, or the lesser of either $500,000 or 1 percent of the violator's net worth in a class-action lawsuit.

In order to prevent identity theft, a consumer is entitled to a free credit report from each major CRA

annually

Regulatory agencies may review a lender's mortgage loan record to determine

any discriminatory practices against classes of individuals and/or within particular areas within the communities served by the lender.

Nonpublic personal information (NPI) is

any personally identifiable financial information that a financial institution collects about an individual in connection with providing product or service

a consumer report is

anywritten oral or other communication of information by a CRA bearing 1. bearing on a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living; and 2. to be used in establishing eligibility for credit or insurance to be used primarily for personal, family, household or employment purposes.

the financial privacy rule of GLBA governs the

collection and disclosure of customers' personal financial information by financial institutions

the company may develop written procedures, train its personnel in its procedures and monitor their performance to ensure

compliance with the do not call requirements. Each Violation of telemarketing sales requirements (ad each day is considered a new violation) can result in a penalty of $16,000.

The Fair Credit Reporting Act defines companies that gather and evaluate consumer credit records as

consumer reporting agencies

Under the Gramm-Leach-Bliley Act, a financial institution may share a customer's account information with a nonaffiliated third party that is

consumer reporting agency

onley a person with a legitimate business need, as recognized by the FCRA, can get a copy of a

consumer's report. For example, a company is allowed to get a report if someone applies for credit, for insurance, for employment or to rent an apartment. In a loan transaction, the borrower, the underwriter and the closer would be entitled to a copy of the borrower's report, but the seller would NOT.

to help ward off identity theft, retailers are required to hide

credit card and debit card info on customer receipts. Only the last 5 digits of a card can be listed. All cash registers and point of sale terminals must print these safeguarded receipts

It is optional for financial institutions supervised by the Federal Reserve or FDIC to report reasons for

denying a loan application, but institutions that are supervised by other regulators are required to report this data.

GLBA, prior to amendments made by the Dodd-Frank Act, gave authority to

eight federal agencies and the state to adminster and enforce its Financial Privacy Rule and Safeguards Rule.

the goal of ECOA is to

ensure that all persons, consumers, ad businesses are given an equal chance to obtain credit.

The purpose of the Fair Credit Reporting Act is to

ensure the accuracy of information in consumer reports

The FTC's Telemarketing Sales Rule requires that persons who engage in telemarketing

establish policies and procedures to ensure compliance with the rule

upon request, the CRA must disclose to the consumer

everything in his report including medical information and in most cases the sources of the info and must provide a list of everyone who requested his report within the past year (or two years for employment related requests)

Originators given fax numbers by clients or customers, or who obtained the fax number from a public source such as a directory, advertisement or a website, can send

faxes to these persons even though the faxes are not specifically requested. Because there are no time restrictions specified in the laws, a mortgage brokerage can send faxes to any person who has made an inquiry to the brokerage indefinitely, until the person requests that he not be sent any more faxes.

FACTA requires the three major CRAs to allow consumer to obtain a

free copy of their own credit report every 12 months so they have an opportunity to discover and correct errors in their credit records and make sure that accounts have not been fraudulently opened in their names

All faxes must provide a

free opt-out mechanism, through which the recipient may request that the sender not send any future similar documents. The faxes must contain the date and time they were sent, as well as the name and phone number of the business sending them, on the first page.

promotional inquiries are

from venders who examine a credit bureaus database on a set of parameters and receive mailing address information for individuals matching their criteria. These vendors are not viewing a report but obtaining a list of individuals to whom they wish to ffer either credit or insurance services

Regulation C requires a lending institution to post a

general notice about the availibility of HMDA data in the lobby of its home office and each branch office located in a metrioplitan area. The following is suggested, not required, wording. Insert an address at the end, or if HMDA data is available at branch offices, omit the last sentence.

In a face-to-face application, if the applicant chooses not to provide his race, national origin or sex, the licensee must inform the applicant that

he will note the information on the basis of his visual observation and continue to process the application

The FTC Red Flags Rule requires that creditors create and monitor policies applying to red flags that indicate

identity theft

The Equal Credit Opportunity Act (ECOA) was enacted

in 1974

any debt collector that learns that information on a consumer's credit report is fraudulent must

inform the creditor that the information is false. No retailer or creditor may report to credit bureaus credit information that is known to, or believed to, stem from fraud.

NPI does not include

information where there is reasonable basis to believe it is lawfully made publicly available

account management inquiries are

inquiries from creditors with whom a borrower has an existing account and to whom he has granted the authorization to make periodic inquiries. Because the morre inquiries a consumer has to his credit report the less favorable he looks to a creditor, these inquiries are omitted from the business version to avoid penalizing the consumers for inquiries he did not initiate or request

A lender engages in redlining when

it refuses to provide lending products and services on an equal basis to residents of minority neighborhoods. (The term is derived from the practice of drawing red lines around minority areas on a map.)

Financial institutions covered by the GLBA's Safeguard rule include

lender and other traditional institutions, as well as payday lenders, check-cashing businesses, professional tax preparers, auto dealers engaged in financing or leasing, electronic funds transfer networks, mortgage brokers, credit counselors, real estate settlement companies, and retailers that issue credit

effective 2018

lending institutions will no longer be required to provide HMDA data to the public upon request. Instead, the public should be directed to the CFPB's website.

A company engaging in telemarketing is prohibited from

making interstate or intrastate calls to anyone whose number is listed on the Registry, unless an "established business relationship" exists.

The Home Mortgage Disclosure Act (HMDA) was enacted by Congress

n 1974 and has been implemented by the Federal Reserve Board's Regulation C. On July 21, 2011, the enforcement and rulemaking authority over the HMDA transferred to the CFPB, under the provisions of the Dodd-Frank Act. (Dodd-Frank Act, Title 10, Section 1002(12)(K), (14); Sections 1062, 1094

The Do-Not-Call Implementation Act authorized the creation of a

national Do-Not-Call Registry that enables consumers to register their phone numbers (including cell phone numbers) as numbers not to be called by telemarketers.

citizenship is different than

national orientation

with full disclosure to the consumer and a contractual confidentiality agreement, a financial institution can provide

nonpublic personal information to a nonaffiliated third party to perform services for it or perform functions on its behalf. A financial institution may, for example, share information with CRAs or with service providers that will assist it in marketing its own products or services, or financial products or services offered under joint agreements with other financial institutions. Therefore, a lender may disclose customer information to a service provider that will mail account statements and will use the information only for the limited purpose of mailing those statements, but the lender may not sell the information to other organizations or use it for marketing.

a financial institution must provide a privacy notice to a consumer (an individual who obtains or has obtained a financial product or service from a financial institution for personal, family or household reasons) before it or an affiliate discloses

nonpublic personal information to a nonaffiliated third party. A consumer who has a continuing relationship with the institution is considered a customer and is entitled to a privacy notice automatically every year for as long as the relationship lasts.

If a request for a credit report has an address for the consumer that is substantially different from the addresses in the consumer's file, the CRA must

notify the loan originator of the discrepancy. Upon receipt of this notice, the originator has some responsibility to validate the loan applicant's identity in order to form a reasonable belief that the applicant is actually the person to whom the consumer report pertains.

No later than the third business day after receipt of an application for credit to be secured by a first lien on a dwelling, the creditor must mail or provide a notice

of the applicant's right to receive a copy of all written appraisals developed in connection with the application.

when two or more consumers jointly obtaina financial product or service notice, requirements may be satisfied with

one notice for the consumers jointly unless one or more consumers request separate notices

Joint notice may be provided from

one or more affiliates or other financial institutions as identified in the notice as long as it is accurate

consumer reporting agencies (CRAs) are

person that, for monetary fees, for dues or on a cooperative nonprofit basis, regularly assemble or evaluate credit information or other info on consumers in order to furnish consumer reports to third parties.

Under HMDA, what is the term for an application for a home purchase loan in which the lender, after a comprehensive analysis of the applicant's creditworthiness, issues a written commitment to make a home purchase loan up to a specified amount, subject to the home's appraisal?

preapproval request

An applicant may waive the timing requirement and agree to

receive any copy at or before consummation or account opening. A waiver must be obtained at least three business days prior to consummation or account opening, unless the waiver pertains solely to the applicant's receipt of a copy of the appraisal or other written valuation that contains only clerical changes from a previous version that was provided earlier. If the applicant provides a waiver and the transaction is not consummated or the account is not opened, the creditor must provide the copies no later than 30 days after the creditor determines consummation will not occur or the account will not be opened.

effective 2018, HDMA will also exclude

recreational vehicle parks; structures originally designed as dwellings but used exclusively for commercial purposes (e.g., homes converted to daycare facilities or professional offices); and houseboats, floating homes and mobile homes constructed before June 15, 1976, regardless of whether they are used as residences.

financial institutions must provide any

required privacy notices and opt-out notices, including short-form initial notices, so that each consumer can reasonably be expected to receive actual notice in writing or, if the consumer agrees, electronically.

once a credit bureau receives a fraud alert, it must

take steps to ensure that the consumer and not the thief will be granted credit in the future

The Federal Trade Commission's Red Flags Rule is part of

the Fair and Accurate Credit Transaction Act

In the processing of a loan application, a lender's credit scoring system helps to evaluate

the applicants creditworthiness

GLBA's safeguards rule implements

the security requirements of GLBA. It requires all financial institutions to design, implement, and maintain safeguards, including policies and procedures to ensure the security and confidentially or custome rinformation and protect customer information against unauthorized access

The Telephone Consumer Protection Act (TCPA) and the Junk Fax Prevention Act prohibit

the sending of faxes containing any commercial advertising to a person without his prior express invitation or permission (i.e., express consent or an established business relationship with the recipient). A business has an established business relationship with anyone with whom it has had a transaction or with someone who has made an inquiry to the business.

Financial institutions are prohibited from disclosing

their customers' account number to nonaffiliated companies (other than CRAs) when it comes to telemarketing, direct mail marketing, or other marketing through email, evin if the individuals have not opted out of sharing this information for marketing purposes

under the GLBA as originally enacted, the FTC had authority

to enforce the law with respect to financial institutions that were not covered by the federal banking agencies, the Securites and Exchange Commision, the Commodity Futures Trading Commission, and state insurance authorities. Among the institutions that fell under FTC jurisdiction were nonbank loan originators (including mortgage lenders and brokers), some financial or investment advisers, tax preparers, providers of real estate settlement services, and debt collectors.

FACTA also creates

uniform credit standards that set clear rules on what the credit agencies can include in consumer credit reports

signed into law in december 2003, the fair adn accurate credit transaction (FACTA) amended the (FCRA) established

uniform standards for credit reporting and beefed up consumer protections against identity theft.

creditors and insurere may use CRA file information as a basis for sending

unsolicited credit and insurance offers. However, the FCRA establishes processes by which a consumer may request, by phone or in writing, that CRAs not distribute his name on lists used by creditors and insurers to make unsolicited offers. Phone requests last for five years; written requests are permanent.