FTC to revise the Notices on credit reporting

The Federal Trade Commission (FTC) is all set to modify the notices that credit bureaus provide to consumers in accordance with the provisions of the Fair Credit Reporting Act (FCRA).

Under the FCRA, the credit bureaus must supply the consumers with notices that summarize the consumers’ rights and duties concerning the various aspects of credit reporting, such as how to obtain a free copy of credit report, how to dispute credit information etc. In order to make these disclosures more useful and reader-friendly, the FTC will soon be revising the pattern of the disclosure.

The FTC has already chalked out a sample that shows how the revised notice should be. The revisions are specifically structured to reflect the new FTC guidelines for debt relief services and other regulations under the Fair and Accurate Credit Transactions Act of 2003. Also they are expected to ameliorate the way credit report information is furnished.

The proposed version of the notice is designed such that it is an easy read even to someone with 12th grade knowledge. Clearer texts, short and succinct sentences and a simpler layout of the document are surely going to be a hit with even a layman. Thus, it is expected to add a touch of overall improvement to the model notices so they become more useful for the consumers. Keeping with the tenets of consumer friendliness, the FTC has also invited public comments on the proposed revision so it can be improved further.