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Federal Register / Vol. 86, No. 174 / Monday, September 13, 2021 / Rules and Regulations
Jackson, WY, Jackson Hole, GEYSER SIX
Graphic DP
FR Doc. 202119643 Filed 91021; 8:45 am BILLING CODE 491013P

FEDERAL TRADE COMMISSION
16 CFR Parts 642 and 698
RIN 3084AB63

Prescreen Opt-Out Notice Rule Federal Trade Commission.
Final rule.

AGENCY:
ACTION:

The Federal Trade Commission FTC or Commission is issuing a final rule Final Rule to amend its Prescreen Opt-Out Notice Rule to correspond to changes made to the Fair Credit Reporting Act FCRA
by the Dodd-Frank Act and to reinstate and amend a model prescreen opt-out notice.
DATES: This rule is effective October 13, 2021.
FOR FURTHER INFORMATION CONTACT:
David Lincicum 2023262773, Division of Privacy and Identity Protection, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
SUMMARY:

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I. Background A. The Prescreen Opt-Out Notice Rule Section 615d of the FCRA 1 requires that any person who uses a consumer report in order to make an unsolicited firm offer of credit or insurance to the consumer prescreened offer or prescreened solicitation shall provide with each written solicitation a clear and conspicuous statement that:
A Information contained in the consumers consumer report was used in connection with the transaction; B
the consumer received the offer of credit or insurance because the consumer satisfied the criteria for credit worthiness or insurability under which the consumer was selected for the offer;
C if applicable, the credit or insurance may not be extended if, after the consumer responds to the offer, the consumer does not meet the criteria used to select the consumer for the offer or any applicable criteria bearing on credit worthiness or insurability or does not furnish any required collateral; D
the consumer has a right to prohibit information contained in the consumers file with any consumer reporting agency from being used in 1 15

U.S.C. 1681md.

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connection with any credit or insurance transaction that is not initiated by the consumer; and E the consumer may exercise the opt-out right by notifying a notification system established under section 604e of the FCRA.
The Fair and Accurate Credit Transactions Act of 2003 FACT Act was signed into law on December 4, 2003. Public Law 108159, 117 Stat.
1952. Section 213a of the FACT Act amended FCRA section 615d to require that the statement mandated by section 615d be presented in such format and in such type size and manner as to be simple and easy to understand, as established by the Commission, by rule, in consultation with the Federal banking agencies and the National Credit Union Administration. On August 1, 2005, the FTC issued its Prescreen Opt-Out Notice Rule.2

that were no longer necessary due to the Dodd-Frank Acts change to its rulemaking authority.10 The prescreen opt-out model notice was included in this rescission.

B. Dodd-Frank Act The Dodd-Frank Wall Street Reform and Consumer Protection Act DoddFrank Act was signed into law in 2010.3 The Dodd-Frank Act substantially changed the federal legal framework for financial services providers. Among the changes, the Dodd-Frank Act transferred to the Consumer Financial Protection Bureau CFPB the Commissions rulemaking authority under portions of the FCRA.4
Accordingly, in 2012, the Commission rescinded several of its FCRA rules, which had been replaced by rules issued by the CFPB.5 The FTC retained rulemaking authority for other rules to the extent the rules apply to motor vehicle dealers described in section 1029a of the Dodd-Frank Act 6 that are predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both motor vehicle dealers.7 The retained rules include the Prescreen Opt-Out Notice Rule, which now applies only to motor vehicle dealers.8 Consumer report users originally covered by the Prescreen Opt-Out Notice Rule that are not motor vehicle dealers are covered by the CFPBs rule.9
On May 22, 2019, the FTC rescinded several FCRA model notices and forms
III. Overview of Final Rule The Commission promulgated the Prescreen Opt-Out Notice Rule at a time when it had rulemaking authority for a broader group of consumer report users.
While the Dodd-Frank Act did not change the Commissions enforcement authority for the Prescreen Opt-Out Notice Rule, it did narrow the Commissions rulemaking authority with respect to the Rule. It now covers only motor vehicle dealers.12 The amendments in the Dodd-Frank Act necessitate technical revisions to the Prescreen Opt-Out Notice Rule to ensure that the regulation is consistent with the text of the amended FCRA. Accordingly, the Commission amends the Prescreen Opt-Out Notice Rule to properly reflect the Rules scope.
The amendment to section 642.1
narrows the scope of the Prescreen OptOut Notice Rule to those entities set forth in the Dodd-Frank Act that are predominantly engaged in the sale and servicing of motor vehicles, excluding those dealers that directly extend credit to consumers and do not routinely assign the extensions of credit to an unaffiliated third party.13 It does so by replacing the general term person with the term motor vehicle dealers, as defined in amended section 642.2.
One commenter argued the Rule should use the term MVD in the place of motor vehicle dealers in order to reduce the word count of the Rule.14
The Commission believes the term
2 70

FR 5021 Aug. 1, 2005.
Law 111203 2010.
4 15 U.S.C. 1681 et seq. The Dodd-Frank Act does not transfer to the CFPB rulemaking authority for section 615e of the FCRA Red Flag Guidelines and Regulations Required and section 628 of the FCRA Disposal of Records. See 15 U.S.C.
1681se.
5 77 FR 22200 April 13, 2012; 12 U.S.C. 5519.
6 15 U.S.C. 5519.
7 77 FR 22200 April 13, 2012.
8 Id.
9 12 CFR 1022.54.
3 Public
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II. Regulatory Review of the Prescreen Opt-Out Notice Rule On September 21, 2020, the Commission solicited comments on the Prescreen Opt-Out Notice Rule. The Commission sought information about the costs and benefits of the Rule, and its regulatory and economic impact. In addition, the Commission proposed amending sections 642.1 and 642.2 to narrow the scope of the Rule to motor vehicle dealers excluded from CFPB
jurisdiction as described in the DoddFrank Act and reinstating the Prescreen Opt-Out Notice Rule model notice. The Commission received two comments concerning the Rule.11

10 84

FR 23471 May 22, 2019.
comments can be found at www.regulations.gov/document/FTC-2020-00660001/comment.
12 15 U.S.C. 1681se1; 12 U.S.C. 5519.
13 12 U.S.C. 5519.
14 Devin Davis Comment 2.
11 The
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