ACA International Files Comments on FTC Proposed Rule

Last week, ACA International submitted comments in response to the Federal Trade Commission’s (FTC) proposed rule and request for comment on the Summary of Rights and Notices of Duties under the Fair Credit Reporting Act (FCRA). ACA is opposed to the current user notice being used by the FTC because it is too restrictive in what it forces consumer reporting agencies (CRAs) to provide businesses that require consumer information.

The FCRA requires the FTC to prepare a model summary of rights, including the content of notices that CRAs must provide to entities that obtain and use consumer report information. ACA believes the User Notice proposed by the Commission has different content than what is required under the statutory language of the FCRA. The FTC goes too far in restricting the content to only “credit” accounts, and its proposal is inconsistent with the text of the law and the Commission’s Official Staff Commentary, which expressly contemplates a permissible purpose to use consumer reports to review and collect consumers’ accounts regardless whether it is a credit account or non-credit account.

ACA believes the FTC should revise its proposal so the proposed User Notice correctly provides that users, such as collection agencies, have a valid permissible purpose to obtain a consumer report in connection with the recovery of debts. If there are any questions regarding this proposed rule, please contact Adam Peterman at peterman@acainternational.org or 202-547-2670.