Tag: FCRA file disclosures

CFPB Raises Ceiling on Allowable Charges for FCRA File Disclosures in 2023 December 19, 2022 On November 22, 2022, the Consumer Financial Protection Bureau (CFPB) announced the latest annual update to the maximum amount that consumer reporting agencies (CRAs) can charge consumers for making a file disclosure under the Fair Credit Reporting Act (FCRA). Under the latest adjustment to the rule, the ceiling for allowable charges, provided for under Section 612(f) of the FCRA, will increase to $14.50. This ceiling is a $1.00 increase over the maximum allowable charge for 2022. Background Section 609 of the FCRA requires that CRAs provide consumers with all of the consumer information contained within their files upon request. In addition, under Section 612(a), nationwide CRAs must provide one free file disclosure every 12 months under certain defined conditions. These CRAs include the major credit reporting agencies and national specialty consumer reporting agencies. However, Section 612(f)(1)(A) creates a limit on how much CRAs may charge for a file disclosure when consumers do not qualify to receive it for free. Furthermore, this section will ensure the charge does not exceed $8.00, and the consumers must know it before the CRA discloses the file. In turn, Section 612(f)(2) states that, on January 1 of each year, this $8.00 charge will proportionally increase based on changes in the Consumer Price Index. In addition, any fractional changes will round to the nearest $0.50 increment. The CFPB bases these changes on the Consumer Price Index for All Urban Consumers (CPI-U), a general index that covers all urban consumers and items. How Did the CFPB Calculate the Current Increase? The CFPB took the $8.00 charge specified in Section 612(f)(1)(A)(i) as the baseline for the calculation of costs for disclosures made under Section 609. Because Section 612(a) went into effect on September 30, 1997, the CFPB then calculated the proportional increase in the CPI-U between September 1997 and 2022 to determine what they needed to charge. Between September 1997 and 2022, the CPI-U increased by 84,124%. Therefore, increasing the $8.00 baseline by this amount leaves a figure of $14.73. However, because Section 612(f)(2) indicates any fractional figures would round to the nearest $0.50, the CFPB instead rounds this amount to $14.50 to set the final maximum allowable charge. The Effect The FCRA, which Congress enacted in 1970, is crucial legislation ensuring consumer reporting accuracy and fairness. The maximum charge set forth by the CFPB ensures that consumers receive reasonable costs for accessing their consumer files under the conditions set forth under the FCRA. This new maximum charge of $14.50 will take effect on January 1, 2023. Stay updated on all the new rules of compliance with Pre-employ’s free news resources on FCRA, EEOC, and more. Contact a Sales Rep today for more information. Source

Tag: FCRA file disclosures

CFPB Raises Ceiling on Allowable Charges for FCRA File Disclosures in 2023

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