Q Our credit union uses information in our database to generate credit offers, rather than using prescreened lists obtained from credit bureaus.
Do we still have to comply with the Fair Credit Reporting Act (FCRA) prescreen opt-out regulation?
A The FCRA prescreen opt-out regulation wouldn’t apply.
The prescreening regulation covers anyone who uses credit reports to make unsolicited firm offers of credit or insurance. The regulation doesn’t cover other mass mailed offers that aren’t derived from prescreened lists credit bureaus develop.
So, if the credit union obtained the names of consumers meeting the criteria for these offers from a credit bureau’s database (or from a list that the credit union supplied to the credit bureau), the regulation applies.
But in this case, the regulation doesn’t apply if the credit union uses its own internally generated information to make the offers.
For more information, visit CUNA’s e-Guide to Federal Laws and Regulations