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Source: Fair Credit Reporting Act (FCRA) §604(e) & §615(d)(2), as amended by the
Fair and Accurate Credit Transactions (FACT) Act §213; Federal Register (Vol. 70, No. 19) published
by the Federal Trade Commission on January 31, 2005
Effective Date: August 1, 2005
If an entity uses information obtained from a credit bureau to send an unsolicited offer of credit
(prescreen solicitation) to a consumer, a notice must be provided to the consumer in the solicitation
explaining how to opt out from receiving future credit offers by contacting the credit bureau. The
notice must contain plain language that is simple and easy to understand.
The notice is considered to be simple and easy to understand if it meets all of the following requirements:
- The notice is presented in a layered format containing both a “short” notice and a “long” notice.
- The language can be easily understood by ordinary consumers.
- The language consists of clear and concise sentences, paragraphs, and sections.
Factors that contribute to the language being simple and easy to understand are the following: using short sentences,
everyday words, and active voice; avoiding multiple negatives and legal or technical business terms; and using accurate
and precise statements such that they are not subject to different interpretations.
Short Notice
The short notice must meet the following requirements:
- Located on the front side of the first page the consumer will see (e.g., cover letter) for a paper solicitation.
- Located on the same page and close to the most important marketing text for an electronic solicitation.
- Located on the page and in a format that is distinct from other text on the page (e.g., within a border).
- Consist of a type size that is larger than the type size of the other text on the same page. For a paper solicitation,
the type size must be at least 12-point.
- Consist of a type style that is distinct from the primary type style of the other text on the page (e.g., bolded, italicized,
underlined, or in a contrasting color from the principal text if the solicitation contains type in different colors).
- Contain a statement that the consumer has the right to opt out of receiving prescreened solicitations. The statement must
contain the credit bureau’s toll-free telephone number for opting out. The statement must refer the borrower to the location of
the long notice within the solicitation and include the long notice heading of “PRESCREEN & OPTOUT NOTICE.” No other information can be included.
Long Notice
The long notice must meet the following requirements:
- Located within the solicitation.
- Located on the page and in a format that is set apart from other text on the page (e.g., including blank lines above and below the notice
and by indenting the left and right margins).
- Consist of a type size that is at least the same as the principal text on the same page. For a paper solicitation, the type size must
be at least 8-point.
- Begin with a heading in capital letters and underlined that states the following: “PRESCREEN & OPT-OUT NOTICE.”
- Consist of a type style that is distinct from the principal type style of the text on the same page (e.g., bolded, italicized, underlined,
or in a contrasting color from the principal text if the solicitation contains type in different colors).
- Contain language informing the consumer of the following:
- The solicitation is based on information in the consumer’s credit report.
- The consumer received the solicitation because he satisfied the criteria used to determine creditworthiness.
- The credit may not be granted if, after responding to the solicitation, the consumer does not meet the eligibility requirements or the
consumer does not provide any required collateral.
- The consumer has the right to opt out of receiving prescreen solicitations by contacting the credit bureau which provided the consumer’s
information. The credit bureau’s designated address and toll-free telephone number for receiving opt-out requests must be provided.
The long notice may contain additional information provided the additional information does not
interfere with, detract from, contradict, or otherwise undermine the purpose of the prescreen
opt-out notice.
Examples of Short and Long Notices
Examples of the short and long notices are attached. These examples provided by the FTC include model notice language and are intended to
illustrate the proper placement and display of the language. The FTC issued these model notices in both English and Spanish to assist entities
with implementing the notice requirements. Exact duplication of the example notices is not mandated.
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