May 3, 2004 News Archive

Community Bank Director Training

Request for Comment on Proposed Rule on Use of Medical Information for Credit Eligibility
The federal regulatory agencies request comment on proposed regulations implementing section 411 of the Fair and Accurate Transactions Act of 2003 (FACT Act).

The FACT Act amends the Fair Credit Reporting Act (FCRA), and section 411 adds new sections to the FCRA. The new sections restrict the circumstances under which consumer reporting agencies may furnish consumer reports containing medical information about consumers and prohibit creditors from obtaining or using a consumer's medical information in connection with the determination of the consumer's eligibility, or continued eligibility, for credit. However, section 411 also grants exceptions allowing creditors to obtain or use medical information for credit determination in those circumstances deemed necessary and appropriate by the agencies.

In addition, section 411 also amends the FCRA to limit the ability of creditors and others to share medical-related information with affiliates, and enumerates the situations in which creditors would be permitted to share medical information among affiliates.

Comments must be received by May 28, 2004.

Governor Bies on Current Issues in Corporate Governance
Speaking at a recent conference, Governor Bies covered a litany of risk issues, including loan loss reserve accounting, cybersecurity, and corporate ethics, and the role that internal audit plays in strengthening corporate governance programs.

FDIC Warns of Additional Fraudulent E-Mails
In a press release, the FDIC warned consumers of another e-mail scam that claims to be endorsed by the FDIC. This latest version indicates that the FDIC has collaborated with credit card agencies to offer a new service for consumers wishing to protect their cards against fraud.