Fair Credit Reporting Act: Section 301 subjects credit bureaus to additional requirements. These include providing fraud alerts for consumer files for at least a year (up from 90 days), allowing consumers to place security freezes on their credit reports free of charge, and creating new protections for minors’ credit reports.
Section 302 requires credit bureaus to exclude certain medical debt from veterans’ credit reports until one year after they received medical service.
It also establishes a dispute process and verification procedures for veterans’ medical debts contained in credit reports.
Reporting senior exploitation: Section 303 protects financial institutions and their employees from liability for reporting suspected financial exploitation of a senior citizen.
To be eligible for this new protection, the financial institution must provide appropriate training to all staff that may come into contact with senior members, review or approve their financial documents, or supervise such employees.
This training must occur as soon as reasonably practicable, and for new employees within the first year of employment.
Servicemembers Civil Relief Act: Section 313 expands the grace period for foreclosure protection from 90 days to one year following the servicemember’s active duty period. It also makes this provision permanent rather than subject to periodic renewal by Congress.
Under the grace period, a court may stay a foreclosure action that is filed during or within one year after the servicemember’s military service (for mortgage debt incurred prior to active duty).
In addition, the sale, foreclosure, or seizure of real estate won’t be valid if it occurs during or within one year after the servicemember’s military service ends—unless the creditor has obtained a valid court order approving the sale, foreclosure, or seizure of the real estate.
Student loan protections: Section 601 prohibits lenders from declaring an automatic default in the case of the death or bankruptcy of the co-signer. It also requires lenders to release co-signers from private student loan repayment obligations in the event of the death of the student borrower (as is the case for federal student loans).
Section 602 allows consumers to request that information related to a default on a qualified private student loan be removed from a credit report if the borrower satisfies the requirements of a private lender’s loan rehabilitation program (as approved by lender’s regulator).
These are only some of the major highlights of a complex statute.
For more information and latest developments, visit CUNA’s Compliance Community.
Contact CUNA’s Compliance Team at email@example.com.