Written By Digital Content Editor Thomas Ahearn
On November 21, 2022, the Consumer Financial Protection Bureau (CFPB) issued a final rule on “Fair Credit Reporting Act Disclosures Annual Adjustment” to establish the maximum allowable charge for disclosures by a consumer reporting agency (CRA) to a consumer under Section 609 of the Fair Credit Reporting Act (FCRA).
The CFPB is required to calculate annually the dollar amount of the maximum allowable charge for disclosures by a CRA to a consumer pursuant to Section 609 of the FCRA. This final rule (Federal Register) (PDF) establishes the maximum allowable charge for the 2023 calendar year to be $14.50 and is effective January 1, 2023.
Under section 609 of the FCRA, a CRA must, upon a consumer’s request, disclose to the consumer information in the consumer’s file. The FCRA also gives consumers the right to a free file disclosure upon request once every 12 months from nationwide consumer reporting agencies and nationwide specialty consumer reporting agencies.
When the consumer is not entitled to a free file disclosure, the FCRA provides that a CRA may impose a reasonable charge on a consumer for making a file disclosure. The FCRA provides that the charge for such a disclosure shall not exceed $8.00 and shall be indicated to the consumer before making the file disclosure.
The FCRA also states that the $8.00 maximum amount shall increase on January 1st of each year, based proportionally on changes in the Consumer Price Index, with fractional changes rounded to the nearest fifty cents. Such increases are based on the Consumer Price Index for All Urban Consumers (CPI-U).
Enacted by the United States Congress in 1970, the FCRA 15 U.S.C. §§ 1681-1681x is legislation that promotes the accuracy, fairness, and privacy of consumer information contained in the files of CRAs and protects consumers from the willful and/or negligent inclusion of erroneous data in their consumer reports.
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