There are no requirements for any FACT Act disclosures to be signed or retained. However, as always, you will need to show evidence of compliance. This may be as easy as having a system without retention of specific customer documents.
You will need to be able to demonstrate your procedures in providing necessary disclosures and responding to requests.
Retention of identification and verification of customers is required by CIP, but not by the FACT Act.
This does not trigger the negative pricing disclosure as they are receiving the best rate available to all non-customers.
If the consumer is getting the best rate for that year of vehicle a negative pricing disclosure would not be required.
We believe that all banks have some form of pricing sheet for the officers to use as a guide. Since this is a gray area, you may want to take the conservative approach and provide it to all applicants.
The negative pricing disclosure should be provided.
The disclosure must be specific to the CRA's that were used. Therefore, if you know, at the time of application, which CRA you will use, this notice may be provided at the time of application. However, there is proposal that may require banks to provide this notice at the time or pricing.
It would appear that one past due notice addressed to both borrowers at the same address would be sufficient. It the borrowers live at different addresses, the notice needs to be sent to each address. The rule is final on this section, however, this may still be up for debate.
Each applicant should receive this notice. If both applicants sign the application, you have evidence that they received the notice.
We do not believe this applies to deposit accounts, however, it may be placed on this notice providing it is clear and conspicuous.
If any derogatory information on them will be sent to the credit reporting agency, they will need to receive this notice.
One time to each customer for each account (loan). One notice for all banking relationships is not sufficient.
No. Your procedures would need to evidence that the notice is provided.
It may be included on or with any notice of default, any billing statement or any other materials provided to the customer. However, it cannot be included with the initial Truth in Lending disclosure.
Yes. Since this requirement comes from the FACT Act, which amends the Fair Credit Reporting Act and is a consumer protection law, it is consumer customers that are potential recipients.
Yes, if you are going to report the information on their credit report.
It is our opinion that ChexSystems and TeleCheck are not credit reporting agencies for the FACT Act. We are seeking additional opinions on this issue.
Closed checking accounts are normally reported to ChexSystems; therefore, the Notice of Negative Information would not be required. If the closed checking account is reported to a credit reporting agency, the Notice of Negative Information would not be required as the FACT Act is limited to credit transactions. However, if you have an overdraft this is considered to be credit.
Yes. Therefore, you may want to design at template letter.
When you are sharing information with affiliates for the purpose of solicitation.
It is not required to give this notice annually, but it may be practical to add this to your privacy disclosure, which does need to be given annually. It may be confusing, but how many customers actually read the privacy disclosure.
No, you would not be required to provide them with the notice.
No. However, if the credit bureau has the credit score on it, you may have a hard time proving that you did not use the score in your credit decision. Therefore, if you are not using the credit score you may want to request the CRA to remove it from your reports.
If the secondary market is the lender who makes or arranges the loan, they should provide it. You should check with them to make sure that they are providing it, or you will need to.
It would be your responsibility to provide the notice.
You would need to list the name, address, and phone number for each credit reporting agency used.
The law indicates it must be provided as soon as reasonably practical.
A lender that uses a credit score, other than a credit score provided by a CRA, may satisfy the obligation to provide a credit score by disclosing a credit score and associated key factors supplied by a CRA.
You need to list all CRA's and the scores that were used.
The bank would disclose to the consumer the credit reporting agency that provided the report to the bank with the credit score no matter the source of the actual score. The consumer would contact the credit reporting agency with questions concerning the score and the credit reporting agency may refer the consumer on to the source of the actual score.
We believe it will be on the credit report.
The credit decision should be based on the credit worthiness of the consumer. Bank officials should not ask questions concerning the medical condition that has created the need to convert the van to be handicap accessible. It is permissible to verify the true cost of the conversion.