[Federal Register Volume 63, Number 231 (Wednesday, December 2, 1998)]
[Notices]
[Pages 66545-66546]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32077]
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FEDERAL TRADE COMMISSION
Charges for Certain Disclosures
AGENCY: Federal Trade Commission.
ACTION: Notice regarding charges for certain disclosures.
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SUMMARY: The Federal Trade Commission announces that the current
ceiling on allowable charges under section 612(a) of the Fair Credit
Reporting Act (FCRA) will remain unchanged for 1999. Under 1996
amendments to the FCRA, the Federal Trade Commission is required to
increase the $8.00 amount referred to in paragraph (1)(A)(i) of section
612(a) on January 1 of each year, based proportionally on changes in
the Consumer Price Index, with fractional charges rounded to the
nearest fifty cents. The Consumer Price Index increased only 1.49
percent between September 1997, the Date the FCRA amendments took
effect, and September 1998. This increase is too small to trigger an
increase in the $8.00 figure given the requirement that the figure be
rounded to the nearest $0.50. The figure therefore remains at $8.00.
EFFECTIVE DATE: January 1, 1999.
ADDRESSES: Federal Trade Commission, Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Keith B. Anderson, Bureau of
Economics, Federal Trade Commission, Washington, DC 20580, 202-326-
3428.
SUPPLEMENTARY INFORMATION: The Fair Credit Reporting Act, originally
enacted in 1970,\1\ was extensively amended in 1996. Most of the
amendments to the law, including the one discussed in this notice, went
into effect on September 30, 1997. Section 612(a)(1)(A) states that,
where a consumer reporting agency is permitted to impose a reasonable
charge on a consumer for making a disclosure to the consumer pursuant
to Section 609, the charge shall not exceed $8 and shall be indicated
to the consumer before making the disclosure. Section 612(a)(2) goes on
to state that the Federal Trade Commission (``the Commission'') shall
increase the $8.00 amount referred to in paragraph (1)(A)(i) of Section
612(a) on January 1 of each year, based proportionally on changes in
the Consumer Price Index (CPI), with fractional changes rounded to the
nearest fifty cents.
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\1\ 15 U.S.C. 1681-1681u; Title VI of the Consumer Credit
Protection Act.
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The Commission considers the $8 amount referred to in paragraph
(1)(A)(i) of section 612(a) to be the baseline for the effective
ceiling on reasonable charges dating from the time the amended FCRA
took effect, i.e., September 30, 1997. In November of each year, the
Commission calculates the proportional increase in the Consumer Price
Index (using the most general CPI, which is for all urban consumers,
all items) from September 1997 to September of the current year. The
Commission then determines what modification, if any, from the original
base of $8 should be made effective on January 1 of each subsequent
year, given the requirement that fractional changes be rounded to the
nearest fifty cents.
[[Page 66546]]
Between September 1997 and September 1998, the Consumer Price Index
for all urban consumers and all items increased by 1.49 percent--from
an index value of 161.2 in September 1997 to a value of 163.6 in
September 1998. An increase of 1.49 percent in the $8.00 base figure
would lead to a new figure of $8.12. However, because the statute
directs that the resulting figure be rounded to the nearest $0.50, the
increase is too small to result in any change in the allowable charge.
The Commission therefore determines that there will be no
modification from the base of $8.00 for 1999.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 98-32077 Filed 12-1-98; 8:45 am]
BILLING CODE 6750-01-M
