Draft FCRA Reauthorization Could Limit Companies Marketing Efforts
Marketing efforts of financial institutions could be limited under a draft Fair Credit Reporting Act reauthorization currently pending in the Senate.
The draft, which is still subject to change, would impose new limitations on financial institutions that share customer information among affiliates for solicitation and marketing purposes.
Under these proposed new limits, financial institutions would have to provide their customers with clear and conspicuous disclosure that their personal financial information may be communicated among affiliates for solicitation and marketing purposes.
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In addition, financial institutions would have to provide their customers with an opportunity and “simple method” for prohibiting any solicitation or marketing.
The federal banking agencies and other federal government agencies would develop regulations to implement the new limitation within six months after the enactment of the act. The regulations would become effective three months after they are issued.
In addition to the marketing limitation, the draft calls for a federal government study of the information-sharing practices of financial institutions.