BCFP Provides Updated FCRA Disclosures to Reflect S. 2155 Changes


The Bureau of Consumer Financial Protection (BCFP) issued an interim final rule to incorporate S. 2155 changes into the Fair Credit Reporting Act (FCRA) regulations.

Section 301(a)(1) of S. 2155 increases the minimum time to one year that a nationwide consumer reporting agency must include an initial fraud alert in a consumer’s file under the FCRA.

In addition, section 301(a)(2) of S. 2155 requires nationwide consumer reporting agencies to provide security freezes free of charge to consumers.

Due to these changes the BCFP issued the interim final rule to update the bureau’s model forms for the Summary of Consumer Identity Theft Rights and the Summary of Consumer Rights, which are found in Appendices I and K of Regulation V. The updated forms reflect the changes to the minimum duration of initial fraud alerts and makes adjustments to update contact information for certain FCRA enforcement agencies.

Question of the Week

Do we have to perform CIP on a POD beneficiary?

The Customer Identification Program (CIP) regulations define a customer as a person that opens a new account; and an individual that opens a new account for another individual that lacks legal capacity, such as minor; or an entity that is not a legal person, such as a civic club. By this definition, a payable-on-death (POD) beneficiary would not be considered a customer since they are not the individual opening the account. Since a beneficiary is not covered under the definition of a customer, they would not need to be included in the credit union’s CIP procedures.

However, the credit union is not prohibited from obtaining CIP information on a beneficiary and some do include it in their procedures as a requirement. Credit unions should take note that it might be difficult to obtain all identifying information on an individual that is not present at account opening (which is often the case for a POD beneficiary), but it is not impossible. Also, obtaining at least some of the information in addition to the beneficiary’s name, such as their date of birth and address, might prove helpful in identifying the beneficiary in the event that they collect the funds from the account.

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA released the Board Action Bulletin from its most recent board meeting. During the meeting, the board issued a proposed rule to amend the current appraisal regulations.

Bureau of Consumer Financial Protection (BCFP)

The BCFP released a third report in its series regarding credit invisibility. The third report focuses on the geography of the credit invisible.

The BCFP announced that it will be relocating its southeast regional office from Washington, D.C. to Atlanta and is scheduled to take place in late 2019.

Federal Reserve Board (FRB)

The FRB, FDIC, and OCC issued a proposed rule regarding the treatment of high-volatility commercial real estate.

National Automated Clearing House Association (NACHA)

NACHA announced that three new rules have been approved to expand the capabilities of Same Day ACH. The rules expand the time frame in which Same Day ACHs can be submitted to the network, increases the per-transaction dollar limit to $100,000, and increases the speed of funds availability for certain Same Day and next-day ACH credits.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of Sept. 20. The last update prior to this was Sept. 19.

Questions? Contact the Compliance Hotline: 1.800.546.4465; compliance@nwcua.org.

Posted in Compliance News.