(a) Scope. This subpart applies to any person who uses a consumer
report on any consumer in connection with any credit or insurance
transaction that is not initiated by the consumer, and that is provided
to that person under section 604(c)(1)(B) of the FCRA (15 U.S.C. 1681b(c)(1)(B)),
except for a person excluded from coverage of this part by section
1029 of the Consumer Financial Protection Act of 2010, Title X of
the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public
Law 111-203, 124 Stat. 137.
(b) Definitions. For purposes of this section
and Appendix D of this part, the following definitions apply:
(1) Simple and easy to understand means:
(i) A layered format as described in
paragraph (c) of this section;
(ii) Plain language designed to be understood by ordinary consumers;
and
(iii) Use of
clear and concise sentences, paragraphs, and sections.
(iv) Examples. For purposes of this part, examples
of factors to be considered in determining whether a statement is
in plain language and uses clear and concise sentences, paragraphs,
and sections include:
(A) Use of short explanatory sentences;
(B) Use of definite, concrete,
everyday words;
(C) Use
of active voice;
(D) Avoidance
of multiple negatives;
(E) Avoidance of legal and technical business terminology;
(F) Avoidance of explanations
that are imprecise and reasonably subject to different interpretations;
and
(G) Use of language
that is not misleading.
(2) Principal promotional document means the document designed to be seen first by the consumer, such
as the cover letter.
(c) Prescreen opt-out notice. Any person who
uses a consumer report on any consumer in connection with any credit
or insurance transaction that is not initiated by the consumer, and
that is provided to that person under section 604(c)(1)(B) of the
FCRA (15 U.S.C. 1681b(c)(1)(B)), shall, with each written solicitation
made to the consumer about the transaction, provide the consumer with
the following statement, consisting of a short portion and a long
portion, which shall be in the same language as the offer of credit
or insurance:
(1) Short notice. The short notice shall be a clear and conspicuous, and simple and
easy to understand statement as follows:
(i) Content. The short notice shall state that
the consumer has the right to opt out of receiving prescreened solicitations,
and shall provide the toll-free number the consumer can call to exercise
that right. The short notice also shall direct the consumer to the
existence and location of the long notice, and shall state the heading
for the long notice. The short notice shall not contain any other
information.
(ii) Form. The short notice shall be:
(A) In a type
size that is larger than the type size of the principal text on the
same page, but in no event smaller than 12 point type, or if provided
by electronic means, then reasonable steps shall be taken to ensure
that the type size is larger than the type size of the principal text
on the same page;
(B)
On the front side of the first page of the principal promotional document
in the solicitation, or, if provided electronically, on the same page
and in close proximity to the principal marketing message;
(C) Located on the page and in
a format so that the statement is distinct from other text, such as
inside a border; and
(D)
In a type style that is distinct from the principal type style used
on the same page, such as bolded, italicized, underlined, and/or in
a color that contrasts with the color of the principal text on the
page, if the solicitation is in more than one color.
(2) Long notice. The long notice shall be a
clear and conspicuous, and simple and easy to understand statement
as follows:
(i) Content. The long notice shall state the information required by section
615(d) of the Fair Credit Reporting Act (15 U.S.C. 1681m(d)). The
long notice shall not include any other information that interferes
with, detracts from, contradicts, or otherwise undermines the purpose
of the notice.
(ii) Form. The long notice shall:
(A) Appear in
the solicitation;
(B) Be
in a type size that is no smaller than the type size of the principal
text on the same page, and, for solicitations provided other than
by electronic means, the type size shall in no event be smaller than
8 point type;
(C) Begin
with a heading in capital letters and underlined, and identifying
the long notice as the “PRESCREEN & OPT-OUT NOTICE;”
(D) Be in a type style that is
distinct from the principal type style used on the same page, such
as bolded, italicized, underlined, and/or in a color that contrasts
with the color of the principal text on the page, if the solicitation
is in more than one color; and
(E) Be set apart from other text on the page,
such as by including a blank line above and below the statement, and
by indenting both the left and right margins from other text on the
page.
