Federal Reserve System - 12 CFR Part 202 - Equal Credit Opportunity - Final rule - R-0978

Sep 15, 2026

Uploaded by Kyle

Final rule amending Regulation B model forms under the Equal Credit Opportunity Act to reflect statutory updates to Fair Credit Reporting Act (FCRA) adverse action disclosures. Creditors may include FCRA disclosures with the Regulation B notice required when credit is denied, an account is terminated, or terms are unfavorably changed. Revisions incorporate new FCRA requirements, technical updates, and updated model language for adverse actions based on consumer reporting agency and affiliate information, effective April 30, 1998.

LanguageEnglish

CategoryForms

FormatPDF

Pages14

Reading Time5 min

AccessFree to download

SUPPLEMENTARY INFORMATION

I. Background

II. New model language

Action based on information from a consumer reporting agency

Action based on information from an affiliate

FEDERAL RESERVE SYSTEM 12 CFR Part 202 [Regulation B; Docket No. R-0978] Equal Credit Opportunity AGENCY: Board of Governors ofthe Federal Reserve System. ACTION: Final rule. SUMMARY: The Board is amending certain model forms in its Regulation B to reflect statutory amendments to the Fair Credit Reporting Act (FCRA) disclosures contained in those forms. Creditors have the option of including the FCRA disclosures with the notice of action taken required under Regulation B. In addition, a technical revision has been made to Appendix A. DATE: The rule is effective April 30, 1998. FOR FURTHER INFORMATION CONTACT: Jane Jensen Gell, Senior Attorney, or Pamela Morris Blumenthal, Staff Attorney, Division of Consumer and Community Affairs, Board of Governors ofthe Federal Reserve System, at (202) 452-3667 or 452-2412; users of Telecommunications Device for the Deaf (TDD) only, contact Diane Jenkins at (202) 452-3544. SUPPLEMENTARY INFORMATION: I. Background Regulation B, which implements the Equal Credit Opportunity Act, requires creditors to provide consumers with a notice of action taken if an application for credit is denied, an account is terminated, or the terms of an account are unfavorably changed. The Fair Credit Reporting Act (FCRA) (15 U.S.C. 1681) requires creditors that take adverse action against a consumer, such as by denying an application for credit, to provide consumers with certain disclosures if the action is based on information provided by a third party or a consumer reporting agency. The required FCRA disclosures include, for example, the name and address of the consumer reporting agency that supplied the information. For information obtained from a third party, the required disclosures include a statement that the consumer has the right to request the reason for the denial within sixty days. Creditors have the option of including the FCRA disclosures with the notice of action taken required under Regulation B; Appendix C to Regulation B provides model forms that combine the FCRA and ECOA disclosures. The Economic Growth and Regulatory Paperwork Reduction Act of 1996 (Pub. L. 104- 208, 110 Stat. 3009) made extensive changes to the FCRA. Among other changes, the -2- amendments require that additional disclosures be given to consumers who are denied credit based on information from an affiliate or from a consumer reporting agency. In July 1997, the Board published for public comment proposed amendments to several model forms in Regulation B (61 FR 37166) . The Board is issuing a final rule amending the FCRA portion of Regulation B's model forms C-1 through C-5 and the general instructions for these forms to reflect the changes to the FCRA, which were effective September 30, 1997. The forms include language that may be used when credit is denied based on information obtained from a consumer reporting agency, from a third party other than a consumer reporting agency, or from an affiliate. To minimize the number of changes to the forms, and thereby ease compliance for creditors, the Board is changing the language only in the forms that is affected by the FCRA amendments. II. New model language Action based on information from a consumer reporting agency. When adverse action is taken against a consumer based on information from a consumer reporting agency, section 615(a) of the FCRA now requires the following additional disclosures: a telephone number for the consumer reporting agency (toll-free if the agency compiles and maintains files on consumers nationwide); a statement that the consumer reporting agency did not make the decision to take the adverse action, and cannot state the reason why the adverse action was taken; the consumer's right to a free copy of the credit report from the consumer reporting agency, if the request is made within 60 days of receipt of the adverse action notice; and the consumer's right to dispute with the consumer reporting agency the accuracy or completen

FAQs

What change does the final rule make to Regulation B model forms?

It amends certain Regulation B model forms to reflect statutory amendments to the FCRA disclosures included within those forms and makes a technical revision to Appendix A.

When are creditors allowed to include FCRA disclosures with the Regulation B notice?

Creditors have the option of including the FCRA disclosures with the notice of action taken required under Regulation B when credit is denied, an account is terminated, or account terms are unfavorably changed.

What additional disclosures are required when adverse action is based on information from a consumer reporting agency?

The revised model language reflects new FCRA-required disclosures, including a telephone number, a statement that the agency did not make the adverse action decision and cannot state the reason, the consumer’s right to a free copy of the credit report within 60 days, and the right to dispute the report’s accuracy or completeness.

Sep 15, 2026

Uploaded by Kyle