FACT Rules, Preemption, Tying Top D.C. Agenda

By Heller, Michele; Davenport, Todd | American Banker, January 5, 2004 | Go to article overview

FACT Rules, Preemption, Tying Top D.C. Agenda


Heller, Michele, Davenport, Todd, American Banker


Federal banking regulators already have so many deadlines looming that 2004 promises to be one of their more hectic years in some time.

The biggest priorities are familiar: credit reporting and preemption rules. But those matters will advance as regulators make tough calls on preemption and get into credit reporting nitty-gritty that Congress dumped in their laps.

The most time-consuming project will be writing 26 regulations implementing the Fair and Accurate Credit Transactions Act, which President Bush signed last month. The Office of the Comptroller of the Currency is expected to finalize its controversial preemption rule soon.

Industry officials are gearing up for an unremitting pace, starting immediately.

"It is going to be a very busy first half of the year," said Charlotte Bahin, the director of regulatory affairs for America's Community Bankers. "That is for sure."

Industry officials fought hard for the FACT Act last year and said they will be watching to make sure that regulators take full advantage of the flexibility Congress gave them to set compliance rules.

"The final assessment of these provisions will have to await the regulations, but there is enough in the law to help mitigate some of the burdens that might otherwise have been imposed," said Karen Thomas, the director of regulatory affairs at the Independent Community Bankers of America.

The sweeping FACT Act sets new obligations for financial firms to help deter identity theft and give consumers more control of their credit data. It also reauthorizes a federal ban on state laws that interfere with corporate credit granting and marketing practices.

Lawmakers put the Fed and the Federal Trade Commission, which is led by Bush appointee Timothy Muris, in charge of writing the regulations. The act requires the agencies to consult with the other federal bank and credit union regulators, however.

Some of the work is as simple as setting an effective date, but about 20 provisions involve formulating detailed rules. Those include implementing new initiatives, such as letting customers block solicitations from affiliates, and notifying them if risk-based pricing results in their getting credit at a higher-than-average rate or if negative information is furnished to a credit bureau.

Last month the Fed and FTC proposed giving businesses until Dec. 1 to comply with the 26 more complicated initiatives.

"This will allow industry and the various agencies a reasonable time to establish systems and rules to implement these sections effectively," the proposal said.

The six provisions clarifying requirements under existing law will go into effect March 31, according to the proposal.

On preemption, most observers expect that as early as this month the OCC will publish a final rule on real estate lending that is not much different from the proposal it made this summer. But the controversy probably will not end there.

Though the agency has been generally successful in defending its preemption power in the courts, at least one state attorney general -- New York's Eliot Spitzer -- has hinted that he could sue to roll back the regulation.

State bank regulators, legislators, and attorneys general reacted angrily to an OCC proposal accompanying the July preemption of the Georgia Fair Lending Act that articulated broad powers over real estate lending of national banks. They criticized it as a blatant power grab.

Community groups complained about the invalidation of state consumer protection laws; members of the House and Senate, accusing the agency of overstepping its bounds, urged a delay in finalizing the proposal.

Comptroller John D. Hawke Jr. has shown no indication that he will back down. On Dec. 23 he wrote Rep. Carolyn Maloney, D-N.Y, in response to criticism from her and others in the state's delegation.

In the letter Mr. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

FACT Rules, Preemption, Tying Top D.C. Agenda
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.